Aberdeen City Council’s Finance and Resources Committee approved the move which will see the scheme to charge a fee or tax on overnight stays being developed with key stakeholders.

It will then be reported back to Committee in Autumn 2024 with plans for wider consultation.

Convener of finance and resources, Councillor Alex McLellan, said: “I welcome the powers given to Aberdeen City Council through the Visitor Levy (Scotland) Act 2024 and feel the consultation will provide a valuable opportunity to hear the views of stakeholders, including the hotel industry, around any potential scheme.

“There are a number of cities across Europe who already have a visitor levy, and Edinburgh have been clear that they plan to introduce a scheme, so it is certainly a possibility for Aberdeen - the key factor would be how the additional income generated could be spent on the cultural and tourism offering within the city.”

Chair of the Aberdeen City and Shire Hotels Association Frank Whitaker, added: “The hotels in Aberdeen will be the principle collection agent for the Council and, as such, are keen to learn details of the Visitor Levy scheme that the Council are proposing for consultation.

“The Visitor Levy is not a tourist tax, but a Levy designed to benefit the whole visitor economy, corporate and tourist alike.

“As such, we look forward to learning about the Council’s approach to adopting VisitScotland’s Visitor Levy Guidance for local authorities, developed on behalf of the Scottish Government; in particular a robust financial forecasting model and full clarity on how decisions about how the ring-fenced funds raised are to be invested to the benefit of the visitor economy.”

The report to committee said The Visitor Levy (Scotland) Bill allows local authorities in Scotland to charge a fee or tax on overnight stays in some types of accommodation. The levy would be calculated as a percentage of the chargeable transaction for accommodation, after deducting any commission costs.

The main purpose of the bill is to enable councils to invest more in local tourism facilities and services that benefit visitors and residents.

The local authority has the discretion to set what the rate is and the legislation allows for local authorities to set different rates for different purposes or areas meaning that different rates can be set for particular events, such as arts festivals or special conferences and that local authorities can vary the area in which the levy applies within their boundary.

Local authorities cannot vary the type of accommodation that the Levy would apply to and that includes hotels, bed and breakfasts, hostels, guest houses, self-catering accommodation, camping sites, caravan parks, accommodation in a vehicle, or on board a vessel which is permanently or predominantly situated in one place.

Cruise ships and motor homes are not subject to the levy. The levy is not payable where the visitor or any other person utilising the right to reside in the overnight accommodation is in receipt of benefits, payments, or allowances for a disability.