The Association of Scotland’s Self-Caterers (ASSC) has welcomed the government’s willingness to consider alternatives to the percentage-based overnight tax. Fiona Campbell, CEO of the ASSC, stated that a flat-rate model offers the “clarity, fairness, and simplicity” that the tourism sector has consistently called for.

She expressed regret that these challenges were not addressed sooner, noting the original legislation was “not fit for purpose” and has created “unnecessary uncertainty and operational risk” for businesses.

The announcement coincides with Orkney Islands Council’s decision not to proceed with a visitor levy at this time. The decision follows a feasibility study, conducted with Shetland and the Western Isles councils which have also rejected the scheme. The study found strong local opposition, significant logistical hurdles, and limited economic benefit.

A key concern raised by stakeholders in Orkney was the levy’s perceived unfairness, particularly its exclusion of high-impact visitors like cruise ship passengers. While there was support for a charge to fund local infrastructure, the community favoured models targeting all visitors at entry points, an option not currently permitted under the Visitor Levy (Scotland) Act 2024.

With growing opposition also seen in Stirling and Argyll & Bute, the ASSC is encouraging other councils to postpone their own plans until more flexible and viable charging arrangements are legislated for.

Ms Campbell concluded: “Overall, I am encouraged that Ministers are now listening to calls for flexibility and are working to correct course. The sector remains committed to constructive engagement and to shaping a levy that is fair, consistent, and sustainable.

“Our priority is to protect Scotland’s competitiveness as a world-class destination while ensuring any levy introduced delivers genuine benefit to local communities.”