East Lothian Considers Seasonal Visitor Levy to Enhance Tourism and Support Local Infrastructure, Here’s All You Need to Know

Published on December 5, 2025

The visitor levy, sometimes referred to as a “tourist tax,” being considered for the picturesque region of East Lothian in Scotland would aim at supporting the growing tourism economy there. Plans are afoot as the council seeks to come up with sustainable funding mechanisms that would cover the upkeep of local tourism infrastructure and community services. The initiative, though highly commendable in the face of related challenges experienced during peak seasons, has fueled a debate over its probable repercussions on businesses, especially the small accommodation providers.

The Proposal: A Visitor Levy to Fund Tourism Growth

East Lothian Council is currently exploring the concept of a visitor levy, which would apply to tourists visiting the region during peak seasons. Councillor John McMillan, the cabinet spokesperson for economic development and tourism, emphasized that the proposal is still in its investigative phase. The council plans to engage with local businesses, tourism partners, and community members over the next few months to gather input on how such a levy could be designed to align with East Lothian’s unique character and needs.

McMillan noted that the proposed levy would be a tool to help sustain and enhance the region’s tourism infrastructure, ensuring that East Lothian remains an attractive destination for both visitors and residents alike. Funds generated by the levy could be used to improve local services, maintain public spaces, preserve the region’s cultural heritage, and promote tourism throughout the area.

The Federation of Small Businesses’ Concerns

While East Lothian Council is optimistic about the benefits of a visitor levy, the Federation of Small Businesses (FSB) has expressed concerns. Garry Clark, FSB‘s East Scotland development manager, warned that the proposed levy could have unintended consequences, particularly for small businesses in the area. The FSB cautioned that if implemented too quickly or in a manner that is not carefully considered, the levy could burden local businesses, particularly those already struggling with increased regulation.

The FSB’s concern is that the additional cost and complexity of administering a visitor levy could discourage tourists from visiting East Lothian altogether. Clark pointed out that there is a risk that the levy could push tourists to consider alternative destinations that do not charge an additional tax, ultimately harming the local economy. In addition, small accommodation providers, which make up a significant portion of East Lothian’s tourism sector, may face challenges in absorbing the costs of the levy, potentially leading to business closures.

A Seasonal Approach: FSB’s Alternative Proposal

Rather than a year-round tax, the FSB has proposed a more targeted approach, suggesting that the visitor levy should only be applied during the peak tourist season. East Lothian sees a surge in visitors during the summer months, as tourists flock to its renowned golf courses, scenic beaches, and vibrant food and drink scene. A seasonal tax would allow the council to generate revenue during high-demand periods, without placing undue burden on businesses during quieter months.

Clark suggested that a seasonal visitor levy could be a positive step towards supporting tourism growth while minimizing the impact on local businesses. He highlighted that this approach would allow East Lothian to continue building on its reputation as Scotland’s Golf Coast and a top destination for food and drink tourism. By focusing on peak seasons, the levy could help enhance the visitor experience and provide additional funds to support the region’s tourism infrastructure.

Benefits of the Visitor Levy for Local Communities

Councillor McMillan has outlined several potential benefits of the visitor levy for East Lothian’s communities. By introducing a dedicated funding stream from visitors, the council could enhance its ability to maintain local infrastructure, such as roads, public transport, and tourist facilities, which are often strained by the influx of visitors during peak seasons. In addition, funds could be allocated to promote East Lothian more effectively as a tourist destination, ensuring that the region continues to attract visitors year after year.

McMillan also highlighted the potential for the levy to support the preservation of East Lothian’s cultural and natural heritage. With a wealth of historic sites, beautiful coastlines, and unique landscapes, the region’s tourism sector is closely tied to its environment. The revenue generated by the visitor levy could be used to fund projects that protect these natural and cultural assets, ensuring that they remain accessible to future generations.

Moreover, the levy could help support community services that benefit both residents and tourists. From improving public spaces to enhancing safety measures in tourist hotspots, the funds raised could contribute to a more enjoyable and sustainable tourism experience in East Lothian.

Edinburgh’s Experience: Lessons for East Lothian

As East Lothian considers implementing a visitor levy, it can look to the experience of Edinburgh, which introduced a similar initiative in recent years. However, the pace of implementation in Edinburgh has faced challenges, particularly for local businesses and large online booking platforms. The FSB has pointed out the administrative complexities involved, including the additional bureaucracy that comes with implementing a flat fee or percentage-based visitor levy.

The Scottish Government is currently exploring options to allow local authorities to implement a flat fee for visitors, as an alternative to the percentage-based model. This approach could help streamline the process, making it easier for businesses to adapt and comply with the new system.

Moving Forward: Finding the Right Balance

By giving consideration to a targeted, seasonal approach and taking into account what other cities have done, East Lothian will be able to develop any visitor levy that works for the local economy while being fair to residents and businesses alike. This, in the end, protects the unique character and charm of the area as part of a sustainable tourism model, supportive of East Lothian’s reputation as a widely desired destination.