Wednesday August 6th 2025
Aberdeen City Council headquarters, Marischal College
Written by Midlothian View Reporter, Liam Eunson
The Federation of Small Businesses calls for detailed local economic impact assessment after council approves tax plan.
Responding to today’s decision by Aberdeen City Council to go ahead with the introduction of a Visitor Levy, Mike Duncan, the Federation of Small Businesses North Scotland Development Manager, said:
“Aberdeen’s levy implementation process must be handled with extreme care. It has the potential to raise vital funds to support the local tourism industry and enhance the area as a destination, which would benefit visitors, tourism businesses and residents alike.
“However, one size most definitely does not fit all. Research suggests some so-called tourist taxes can deter visitors and negatively affect the local economy. What works for Paris or Barcelona, for example, might be very different to what works for Aberdeen.
“Aberdeen’s businesses deserve greater clarity on the levy’s likely effects. Therefore, we are calling for a new, Aberdeen-specific economic impact assessment to provide a clearer understanding of the potential impact of the 7% charge, including a comparison with other levy rates.”
FSB Scotland has raised concerns that the 7% charge will be among the highest in Europe and is a “gamble” with Aberdeen’s reputation as a visitor destination.
he business organisation has also highlighted a recent impact assessment commissioned by the Welsh Government, which found a visitor levy could reduce tourist numbers by up to 2.5 per cent and cut visitor spending by as much as £35 million a year.
Mr Duncan also raised concerns about the disproportionate impact on the city’s smallest accommodation providers, such as some guesthouses and B&Bs.
He added: “What is surprising is that the Council has chosen at this stage not to support the smallest, most vulnerable accommodation providers in the city by not exempting those below the VAT threshold. Non-VAT registered accommodation providers will be disproportionately impacted by this decision.”
FSB Scotland is calling for small accommodation providers who are non-VAT registered to be exempt from collecting Aberdeen’s Visitor Levy due to the disproportionate impact it would have upon them.
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