The Visitor Levy is projected to generate an estimated £16 million annually for investment in city centre infrastructure and events. Accommodation providers will retain 1.5% of the charge to offset implementation costs.

Councillor Ricky Bell, treasurer of the City Administration committee, highlighted the move as a step towards greater financial autonomy for local government, echoing a similar levy approved by Edinburgh City Council in January. Cllr Bell told The Glasgow Times that such visitor levies are common globally and have not deterred tourism in other major cities.

He said: “Cities such as Barcelona, Lisbon, Berlin, Hamburg and Paris have all introduced similar schemes in recent years and all have had an increase in visitor numbers.”

However, the decision has drawn criticism from hospitality groups. Marc Crothall, chief executive of the Scottish Tourism Alliance (STA), expressed caution, suggesting the levy could harm Glasgow’s tourism and hospitality sector.

He urged the Scottish Government to reconsider the charging model, advocating for a fixed fee instead of a percentage-based charge, which he believes would be simpler for visitors and more consistent with practices elsewhere in the UK. Mr Crothall also stressed the need for businesses to have more than the minimum 18-month lead-in period to prepare for collecting the tax.

Fiona Campbell

Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers, shared similar concerns, warning that the 5% tourist tax risks undermining Glasgow’s “fragile tourism economy”.

She said: “While we recognise the desire to secure sustainable funding for the visitor economy, the approach approved today stands in stark contrast to the more balanced and pragmatic positions adopted by local authorities in Ayrshire and the Western Isles. These councils have rightly prioritised local consultation and economic impact over political expediency.

“We are particularly concerned by the cumulative impact this levy will have on smaller self-catering businesses and the lack of clarity around how the significant estimated costs – nearly £1m annually – will deliver real value to tourism stakeholders. While allowing operators to retain 1.5% to cover costs is a step in the right direction, the mechanism still places significant administrative and financial burdens on accommodation providers without adequate safeguards.”

Ms Campbell continued: “The establishment of a visitor levy forum is welcome in principle, but it must be truly collaborative, evidence-led, and transparent in its remit.

“We urge Glasgow City Council to engage meaningfully with industry representatives and take into account the lessons from other parts of Scotland where proposals have been paused due to strong feedback from local businesses and communities.

“Tourism is not a cash cow – it is a vital economic and cultural driver for Glasgow. Policy decisions must support its recovery and resilience, not risk further damage through rushed or disproportionate taxation models.”