The Visitor Levy (Scotland) Bill will enable local authorities to apply a levy on overnight stays with all money raised to be reinvested in services and facilities largely used by tourists and business visitors. Similar levies already apply in tourist destinations across Europe, including Amsterdam and Berlin as well as in countries outside of Europe, such as Canada.

Councils that want to introduce a visitor levy will be able to do so after they have consulted with local communities, businesses and tourism organisations.

An 18-month implementation period will then apply before any local authorities can introduce a visitor levy scheme in their area. This is to provide adequate time for councils and businesses to put in place the systems needed to collect and administer a levy.

An expert group of representatives from the tourism industry, COSLA and other partners will continue to work together to produce guidance for local authorities putting in place a visitor levy scheme.

Investment minister Tom Arthur said: “We share a vision with the tourism industry for Scotland to be a global leader in tourism and one of the most economically, environmentally and socially sustainable destinations in the world. A visitor levy can help achieve that vision by empowering councils to raise funding, if they wish to do so, that can be invested in local visitor services and activities.

“This bill has been a clear example of partnership working between the Scottish government, local authorities and the tourism industry, in line with the New Deal for Local government and New Deal for Business.

“We have sought to deliver as much flexibility to local authorities as possible and to listen to businesses to make it as easy as possible for them to adopt these measures.”