“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,” Mr Clark said. “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.
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“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.”
Research commissioned and released last year by St Andrews Links Trust found that visitors coming to play the Old Course and others under the charity’s umbrella generate £317 million annually for the Scottish economy. Roughly 72% of those visitors come from overseas.
Fife Council confirmed last year that it would consult with communities and businesses about the possibility of introducing a visitor levy. Early research has suggested that a 5% surcharge could generate between £3.4m and £8.2m each year.
In its response to that consultation, the FSB noted 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”.
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The FSB’s most recent Big Small Business Survey found that just 11% 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.
It is calling on the council to commission a full independent economic impact assessment before proceeding to a formal consultation.
“Scotland is already an expensive place to visit, and accommodation providers are under intense pressure,” Mr Clark added. “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.”
