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Transient visitor levy: consultation

Views sought on the principles of a local discretionary transient visitor levy or tourist tax.

Annex A: Background to the Tourism Industry in Scotland

Tourism is a significant part of Scotland’s economy, in terms of its size, economic contribution, and its distribution across Scotland.  This Annex provides an updated overview of tourism activity in Scotland, including trends in overnight visitor numbers and day visitors, and data on the accommodation sector.

Overnight Visitors 

In 2018, Scotland received an estimated 15.3 million overnight visitors, an increase of around 0.5 million (3 per cent) since 2017. There were 11.8 million (77 per cent) domestic visitors (from within GB ) and 3.5 million international visitors (23 per cent) in 2018.

Although overall overnight visitor numbers were similar in 2011 and 2018, there has been notable variation over the period. The number of international visitors has grown significantly significantly in recent years, with a 37 per cent increase compared to 2016, whilst the number of domestic visitors has fallen marginally by 2 per cent. Overall the proportion of international visitors made up 23 per cent of all visitors in 2018 compared with just 15 per cent of visitors in 2011. 

Figure 1: Overnight Visitors to Scotland since 2011 (International and Domestic)

Source: IPS and GBTS (2019)

Figure 2 shows that over half (55 per cent) of overnight visitors to Scotland in 2018 visited for the purpose of a holiday, with 27 per cent visiting friends and family, 13 per cent visiting for business purposes and a further 3 per cent for other reasons. Compared to 2011, the number of visitors staying for the purpose of a holiday has risen, whilst the number of visitors visiting for business or visiting friends and family has fallen. The rise in holiday overnight visitors is again mainly driven by international visitors, with a 62 per cent growth in international visits for holiday purposes since 2011. 

Figure 2: Overnight visitors (2011 and 2018) by purpose of visit

Figure 3 shows the distribution of overnight visits across Scotland in 2018 [30] , revealing significant regional concentrations of visitors.  Edinburgh and the Lothians received over 5.2 million overnight visitors in 2018, 31 per cent of total overnight visitors to Scotland and an increase from 2017 where the total number of visits was below 5 million. Greater Glasgow & Clyde Valley and the Highland and Islands received similar numbers of overnight visitors overall with a 16 per cent (2.7 million) and 15 per cent (2.6 million) share of Scotland’s overnight visitors respectively. The Highlands & Islands had significantly more holiday visits (1.8 million) compared to Greater Glasgow & Clyde Valley (1.2 million) with the majority of visitors mainly coming to visit friends and family or on business. 

Figure 3: Overnight Visitors by Region and Reason for Travel, 2018

Source: IPS and GBTS (2019) [31]

Figure 4 shows that international overnight visitors are also relatively concentrated within Scotland. Edinburgh and the Lothians received around 31 per cent of total overnight visitors, but a much higher 49 per cent of Scotland’s total international overnight visitors in 2018. International visitors also represented almost half (46 per cent) of total visitors to Edinburgh and the Lothians. Other areas had much lower shares of international visitors with only Greater Glasgow and Clyde Valley (18 per cent) Highlands and Islands (12 per cent) having more than 10 per cent. 

Figure 4: Domestic and International Overnight Visitors, 2018

Source: IPS and GBTS (2018)

Day Visitors

Day visitors represent a significant source of tourism activity in Scotland. Scotland received an estimated 138 million day visits in 2018. Figure 5 shows that this represents a decrease of 13 million (8.7 per cent decrease) day visits since 2017. The overall number of day has remained relatively constant with an average of 147 million day visits per year between 2011 and 2018.  

Figure 5: Day Visits to Scotland since 2011

Source: ONS (2012 - 2018) Great Britain Day Visitor Survey

Figure 6 shows how many day visits each local authority area received in 2017. It highlights that the Glasgow and Edinburgh received the most day visitors of any authority, with an estimated 20 million day visitors each. Note that this is quite different to the distribution of overnight visitors where Edinburgh & the Lothians received the most visitors by some margin (see figure 3). 

Figure 6: Day Visits across Scotland in 2017

Source: ONS (2017) Great Britain Day Visitor Survey 

Accommodation Sector

There are a range of different accommodation providers which offer visitors overnight accommodation on a commercial basis. These include hotels, guest houses, B&Bs, self-catered accommodation (both traditional and properties advertised through platforms such as Airbnb), hostels and campsites.

Accommodation providers are largely micro- or small businesses, with relatively small numbers of employees.  Table 1 sets out registered business units within the accommodation sector by employee sizeband.  These are business units that are registered to pay either VAT and / or PAYE .

Table 1: Accommodation, Registered Business Sites, by Employee Sizeband, 2018 [32]

Source: ONS (2018), Inter-Departmental Business Register 

There are also a number of accommodation providers that do not currently generate turnover sufficient to exceed the VAT threshold.  The Scottish Valuation Roll contains a list of all hotels, guest houses, hostels and most self-catered accommodation as these properties are rateable for non-domestic rates purposes (although many properties listed will benefit from relief so do not actually pay any business rates [33] ). Table 2 shows the number of properties registered as at April 2019, by Scottish local authority area. 

Table 2: Hotels, Guest Houses, B&Bs and Self-Catering Units on the valuation roll (as at April 2019)

*All figures rounded to the nearest 5 properties

Data from STR [34] for July 2019 indicates there were around 2,100 hotels in Scotland, with a total room stock of around 75,000 rooms.  Full year data for 2018 suggests that the overall room occupancy rate across Scotland’s hotels was just under 77 per cent. It should be noted that the number of hotels and room stock varies significantly across different regions and local authority areas. 

VisitScotland’s Occupancy Survey provides information on occupancy rates across a range of accommodation types, including hotels, B&Bs and Guest Houses, Self-Catering accommodation, hostel accommodation, and caravan pitches.  Figure 6 illustrates that occupancy rates vary across these accommodation types:

Figure 6: Occupancy Rate by Accommodation Type, Scotland, 2018

Source: VisitScotland Occupancy Survey

At a Scotland level, occupancy rates for hotel rooms and beds declined between 2017 and 2018, by 2.7 per cent and 3.5 per cent respectively.  However, rates were unchanged for B&Bs and Guesthouses, and rates increased for Self-Catering units (by 3.8 per cent).

Occupancy rates also vary across Scotland for each accommodation type.  For instance, Hotel Room occupancy rates ranged from 82 per cent in Glasgow & the Clyde Valley to 31 per cent in the Scottish Borders.  B&B and Guest House room occupancy rates ranged from 68 per cent in Edinburgh and the Lothians to 24 per cent in Greater Glasgow and the Clyde Valley, while Self Catering unit occupancy rates ranged from 64 per cent in Argyll, Loch Lomond and the Forth Valley to 31 per cent in Shetland.

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Our Quality Assurance 5-Star Grading Scheme

VisitScotland's Quality Assurance scheme is a 5-star grading scheme for accommodation, attractions and places to eat.

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The Coffee Shop at Peel Farm

© Go Rural / Craig Stephen

VisitScotland's Quality Assurance Scheme

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The Lodge on Loch Lomond Hotel

© Love Loch Lomond

Planning a holiday is fun and exciting. But the sheer number of options available means it can also be a bit overwhelming.

Get started by asking yourself these three simple questions:

  • Where can I stay?
  • Where can I eat?
  • What is there to visit?

Luckily VisitScotland's Quality Assurance scheme is here to help answer your questions and make sure you don't put a foot wrong planning your holiday.

Our 5-star grading scheme brings together all the accommodation, attractions and places to eat that come with the VisitScotland seal of approval - a clear, reliable sign of exceptional customer service and high-quality facilities.

We work hard year-round inspecting the standards of providers across the country so that at a glance, you have the whole, impartial picture of the kind of hospitality, food, drink and more waiting for you on arrival in Scotland.

Quickly compare different establishments, see the range of facilities on offer, and get all the assurance you need when planning your stay.

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St Monans Holiday Park, Fife

© VisitScotland / Kenny Lam

Quality Assurance accommodation

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Loch Ken Eco Bothies

© VisitScotland / Luigi Di Pasquale

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We cater for all  purse-friendly options , from small B&Bs to self-catering holiday parks.

Get the low-down on various  high-end establishments  ranging from luxurious hotels to restaurants with rooms.

PLAN YOUR DAYS (AND NIGHTS)

Once the accommodation is sorted, it's time to start thinking about how you're going to spend your time. VisitScotland's Quality Assurance scheme also assesses  visitor attractions , from castles and museums to tours and leisure centres.

LEAVE THE CAR BEHIND

If you're planning on exploring on foot or two wheels, more holiday planning help is on-hand thanks to the  Welcome Scheme  for walkers and cyclists.

BE ECO-FRIENDLY

Travellers are becoming increasingly aware of their carbon footprint. The Green Tourism Business Scheme and other initiatives can help you to find  eco-friendly accommodation  and  environmentally-friendly things to do .

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IMAGES

  1. 3. Tourism in Scotland

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  2. Accommodation

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  3. Cost of Living & Prices in Scotland: 21 cities compared

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  4. Chapter 9

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  5. Scotland occupancy trends 2010-2014

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  6. UK Office Occupancy Hits Highest Level Since Pandemic Started

    visit scotland occupancy rates

COMMENTS

  1. Accommodation

    The survey is commissioned by VisitScotland. It is carried out by the research agency, The Moffat Centre for Travel and Tourism Business Development. ... View occupancy rates per room, bed or pitch, region, star-rating and more. B&Bs and guesthouses Browse our research and insights on Scotland's B&Bs and guesthouses during the past year. 3 ...

  2. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    The SOAS Report: August 2023/2022 Self-Catering report continued to show growth in the Self-Catering sector in Scotland when compared to the same period in 2022. Scottish Serviced Accommodation occupancy rates for August 2023 experienced a 1.92. percentage point decrease when comparing percentage unit occupancy rates with August 2022.

  3. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    Percentage room occupancy rates for Hotels (sample size >4) in the Highlands of Scotland with the percentage bed occupancy rates in ... Room Occupancy by Former Visit Scotland Area - December 2023/2022 . Area. December 23 December 22 23/22 Diff Change YTD 23 YTD 22 23/22 Diff Change Aberdeen & Grampian : 48.24% 43.16% 5.08 105 68.41% 61.03% 7 ...

  4. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    In the Guest House/B&B sector, the bed occupancy rate for December 2023 was 77.04% compared to data from the previous year of 46.32% occupancy rate; this shows an overall percentage point increase of 30.72. The table below shows the Bed Occupancy rate recorded for December 2023/2022 as well as the 23/22 Diff calculation for the.

  5. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    The SOAS Report: October 2023/2022 Guest House/B&Bs report showed a significant occupancy increase in the Guest House/B&Bs sector in Scotland compared to the same period in 2022. Scottish Serviced Accommodation occupancy rates for October 2023 experienced an 17.17 percentage point increase when comparing percentage room occupancy rates with ...

  6. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT:

    The SOAS Report: September 2023/2022 Hotels report shows an increase in occupancy in the Hotels sector in Scotland compared to the same period in 2022. Scottish Serviced Accommodation occupancy rates for September 2023 experienced an 8.48 percentage point increase when comparing percentage room occupancy rates with September 2022.

  7. PDF Scottish Accommodation Occupancy Survey 2022

    However, when comparing with the same period in 2019, room occupancy experienced a decrease of 6.17 points. Hotel room occupancy reached a peak in July and August at 83.7%, compared with a peak of 74.9% in September 2021. The average peak tariff amongst Hotel accommodation was £144.38, whilst the average off-peak tariff was £136.21.

  8. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT:

    Hostel Bedspace Occupancy rates for August 2023 showed a percentage point increase of 6.28 when compared with August 2022. ... Bed Space Occupancy by Former VisitScotland Area - August 2023/2022 1 23/22 Diff throughout this report is expressed by % Point Change

  9. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    Percentage room and bed occupancy rates for Guest House/B&Bs in the Argyll, Loch Lomond & Forth Valley (ALLV) were the highest in ... Room Occupancy by Former Visit Scotland Area - September 2023/2022 . Area. September September 23 22 23/22 Diff Change YTD 23 YTD 22 23/22 Diff Change

  10. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    The SOAS Report: October 2023/2022 Hostel report continued to show growth in the Hostel sector in Scotland when compared to the same period in 2022. Hostel Bedspace Occupancy rates for October 2023 showed a percentage point increase of 7.60 compared to October 2022. Data from the Scottish Retail Consortium showed that retail sales remained weak ...

  11. PDF Occupancy Report Template

    In the Guest House/B&B sector, the bed occupancy rate for August 2023 was 90.09% compared to data from the previous year of 66.61 occupancy rate; this shows an overall percentage point increase of 23.48. The table below shows the Bed Occupancy rate recorded for August 2023/2022 as well as the 23/22 Diff calculation for the Guest House/B&B sector

  12. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    The SOAS Report: October 2023/2022 Hotels report shows an increase in occupancy in the Hotels sector in Scotland compared to the . same period in 2022. Scottish Serviced Accommodation occupancy rates for October 2023 experienced a 1. 7.17. percentage point . increase when comparing percentage room occupancy rates with October 2022.

  13. Accommodation

    Find occupancy information and growth statistics for different types of accommodation in Scotland, including hotels, B&Bs, self catering, and more.

  14. PDF SCOTTISH ACCOMMODATION OCCUPANCY SURVEY REPORT

    The SOAS Report: October 2023/2022 Self-Catering report continued to show growth in the Self-Catering sector in Scotland when compared to the same period in 2022. Scottish Serviced Accommodation occupancy rates for October 2023 experienced a 2.54. percentage point increase when comparing percentage unit occupancy rates with October 2022.

  15. Scottish Accommodation Occupancy

    The Scottish Accommodation Occupancy Survey (SAOS) gathers and analyses data on occupancy levels in hotels, guest houses, B&Bs, self-catering, hostels and caravan & camping parks.

  16. statistics.gov.scot : Scottish Accommodation Occupancy

    A data cube dataset in folder s : Business, Enterprise and Energy, VisitScotland Scottish Accommodation Occupancy . The Scottish Accommodation Occupancy Survey (SAOS) gathers and analyses data on occupancy levels in hotels, guest houses, B&Bs, self-catering, hostels and caravan & camping parks.

  17. Tourism statistics

    The stats behind the stays - whether you're looking for occupancy information on self-catering properties or caravans. Industry barometer In partnership with local councils and destination organisations, VisitScotland have been inviting businesses to participate in our survey to capture tourism business performance in their regions. VisitBritain

  18. Transient visitor levy: consultation

    Figure 6: Occupancy Rate by Accommodation Type, Scotland, 2018. Source: VisitScotland Occupancy Survey. At a Scotland level, occupancy rates for hotel rooms and beds declined between 2017 and 2018, by 2.7 per cent and 3.5 per cent respectively. However, rates were unchanged for B&Bs and Guesthouses, and rates increased for Self-Catering units ...

  19. Our Quality Assurance 5-Star Grading Scheme

    Our 5-star grading scheme brings together all the accommodation, attractions and places to eat that come with the VisitScotland seal of approval - a clear, reliable sign of exceptional customer service and high-quality facilities. We work hard year-round inspecting the standards of providers across the country so that at a glance, you have the ...