Dundee could introduce a tourist tax within the next three years as an early consultation on the plans is set to be agreed.
Councillors on the local authority’s economic growth committee are scheduled to meet on Monday, where they will discuss a report on implementing a visitor levy in the city.
They will also be asked to approve an engagement exercise with local businesses and residents, which could begin this summer.
Edinburgh City Council was the first in Scotland to approve a visitor levy.
From next summer, it will charge visitors an extra 5% on top of their accommodation costs.
£243m-a-year visitor sector
The council report details that in 2023 there were 1.35 million visits to Dundee, with an average length of stay of 2.6 days.
This visitor economy contributes £243 million to the city each year and supports 3,500 jobs.
To progress the possible introduction of a Dundee tourist tax, it is proposed a working group be set up with council and third-party representatives.
The group will then engage with local businesses, residents and “any other relevant partners” to inform the drafting of a potential visitor levy scheme.
2028 start date possible
A timeline included in the council report details that the early engagement period could begin this summer and run until spring next year.
Feedback from this will then be heard by councillors at a committee meeting, where they will decide whether a statutory consultation should be approved.
The forecast potential income of any levy will also be detailed at this meeting.
If the consultation is given the green-light, it will run for 12 weeks. A decision will then be made in autumn 2026 on whether a Dundee tourist tax should be introduced.
If it is approved, an 18-month implementation period will allow businesses and communities time to prepare for the levy.
The earliest date a Dundee tourist tax will be launched is spring 2028.
Conversation