Friday January 30th 2026
Federation of Small Businesses East Scotland development manager Garry Clark
Written by Midlothian View Reporter, Liam Eunson
Any future Visitor Levy in Fife must be designed fairly to avoid taxing workers staying overnight in the same way as golfing tourists visiting St Andrews, the Federation of Small Businesses (FSB) said today.
In its response to Fife Council’s pre-consultation engagement on a potential Visitor Levy, FSB Scotland said a carefully designed levy could be a “force for good”, generating funds to improve services and infrastructure for the good of visitors and businesses alike.
However, moving too quickly or designing it poorly risks damaging small accommodation providers and the region’s vital tourist economy, the leading business organisation said.
FSB Scotland highlighted particular concern about workers who stay overnight in Fife for employment purposes – including those working at the Rosyth dockyard and within the Forth Green Freeport area – who could be unfairly caught by a levy designed for tourism.
Garry Clark, FSB’s East Scotland development manager, said:
“Fife attracts visitors from all over the world, but it also hosts thousands of people who stay overnight because they are working – not taking a holiday. It would be deeply unfair to tax a Rosyth dockyard worker in exactly the same way as a golfer enjoying a luxury break in St Andrews.
“If a Visitor Levy is taken forward, there must be exemptions or limits for people staying in Fife due to work. Otherwise, the levy risks becoming a blunt instrument that penalises essential workers and the businesses that support them.”
FSB Scotland’s submission notes that many of Fife’s accommodation providers are small, locally run businesses already facing significant cost pressures from high energy prices, inflation, business rates, VAT and the introduction of short-term let licensing.
An additional levy, combined with new administrative burdens, could push some small providers out of the market altogether, it warned.
Business sentiment on a local visitor levy remains sceptical. FSB’s most recent Big Small Business Survey found that just 11 per cent of businesses in Mid-Scotland and Fife believe a Visitor Levy would be beneficial, while more than half oppose it.
The organisation also pointed to the experience of Edinburgh, where the pace of implementation has created difficulties for accommodation providers and booking platforms alike, and urged Fife Council not to rush ahead before learning lessons from elsewhere.
FSB Scotland called on the council to commission a full, independent economic impact assessment before proceeding to a formal consultation, and to consider carefully how any levy is structured, including:
– exemptions for workers staying in Fife temporarily for employment,
– a cap on the number of nights the levy applies, aligned with average stays,
– protection for small accommodation providers, particularly those below the VAT threshold,
– clear guarantees that levy revenues will be reinvested directly into the local visitor economy, rather than replacing existing council spending.
Mr Clark added:
“Scotland is already an expensive place to visit, and accommodation providers are under intense pressure. Any Visitor Levy should be paid by visitors, not become an extra tax or administrative burden on small businesses.
“FSB Scotland is urging Fife Council to pause, learn from what is happening elsewhere, and work with local businesses to get this right. Done well, a levy could support Fife’s tourism economy. Done badly, it risks doing real harm.”
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