Another UK town is now planning to introduce a tourist tax to raise £1m a year

A UK town is considering introducing a tourist tax, hoping it will generate more than a £1 million of income every year.

A report to Falkirk Council’s executive in Scotland says that adding a 5% visitor levy on tourist accommodation would help to pay for services that tourists are likely to use.

Falkirk currently attracts over 800,000 unique visitors a year, with over 500,000 of those staying overnight – contributing to a visitor economy that is now worth £150 million, reported the Daily Record.

Major visitor attractions include the Kelpies, which attract 850,000 visitors per year, and the Falkirk Wheel, which gets 500,000 visits per year. However, visitor numbers are continuing to grow, and the Kelpies aim to achieve one million visits a year by 2028.

With the newly opened Rosebank distillery in Falkirk, plans for a new town hall and theatre, and a £3 million art park being developed through the Local Growth Deal, the council believes the area’s visitor economy will continue growing.

Last year, the Visitor Levy Act gave Scottish local authorities the power to charge people staying in paid accommodation within their area.

Businesses would collect this and pass it to the council for spending on projects linked to tourism and the visitor economy.

Projects could include street cleansing and litter management in places substantially used by visitors, park maintenance and management, increased accessible toilet provision, town dressing and festive lighting, events and cultural programming.

Four local authorities in Scotland have said they will implement the levy – Edinburgh, Stirling, Highland and Argyll & Bute – and Falkirk Council officials are closely following their progress.

At the moment, they are all proposing a 5% levy, and it is likely Falkirk Council would follow suit if they choose to introduce one.

It has been estimated that a levy could generate revenues between £1 million and £1.5 million before costs such as set-up and collection. 

However, the report cautions that this estimate of levy funds would need further investigation and more in-depth analysis if the council proceeds with the scheme.

The process will take at least two years as an 18-month notice period is required. If agreed, an update report seeking a final decision would be brought back to the council’s Executive in 2026/27.