Richard Lochhead: I don’t know how you can define what a Scottish tourism ceiling would look like

Visiting Scotland’s capital will get that wee bit more expensive this summer.

City of Edinburgh Council is the first in the country to charge a visitor levy for overnight stays within its bounds. The fee kicks in for trips from 24 July and a clutch of councils – Glasgow, Aberdeen, Stirling, West Dunbartonshire – have said they’ll bring in their own versions in 2027.

The move is supposed to raise cash for local costs, not least tourism management. But only a minority of local authorities have bought into the levy so far, with others either opting against it or considering its adoption.

“I was always aware that we were going to have a mixed picture across the country,” says Richard Lochhead, whose business and employment portfolio includes tourism and hospitality. So is the take-up of the tax going as he expected? “I personally have had no expectations,” he says. “I have always been aware there are some local authorities that were very keen on the idea.

“There’s no Scottish Government policy saying local authorities should adopt the visitor levy,” he points out. “Edinburgh was front of the queue wanting a levy introduced and our capital city of course is a thriving hub of activity for tourism. 

“It’s not really for the Scottish Government to have a view on whether local councils should do this. Clearly, learning lessons from other countries, it can be useful.”

Despite the significance of tourism to the national economy – the sector is worth £11.4bn and supports 239,000 jobs – it is not without its challenges as the cost-of-living hits consumer spending and increased operating costs squeeze margins.

Pressure over business rates saw finance secretary Shona Robison announce some relief for hospitality, tourism and leisure firms. But, after a rates revaluation initiated by Chancellor Rachel Reeves in November, Scottish industry bodies were hoping for more. 

UKHospitality Scotland’s executive director Leon Thompson said the budget “missed the mark spectacularly on business support”, commenting: “Rather than assisting hospitality navigate through the ruinous revaluations announced last month, our businesses have been left without anything approaching real support.” Marc Crothall, chief executive of the Scottish Tourism Alliance, said that Robison had produced a “package of modest short-term mitigation” which will leave underlying issues “unresolved”.

“There’s no doubt the overall budget will be good for tourism in Scotland,” says Lochhead, arguing that better roads, extra college spending and more housing will help with connectivity and staffing. 

“I absolutely appreciate it’s been a tough time for the sector for the last few years.”

That’s despite an impressive post-Covid turnaround. Whilst lockdowns forced a tourism shut down and depleted consumer confidence led to initial caution around bookings as the country reopened, demand now outstrips pre-pandemic levels. International tourism recovery was the fastest in the UK, with the North American market particularly strong.

The industry-led national tourism strategy emphasises sustainability for the sector. But can Scotland support continued growth, or is there a tourism ceiling in sight? “I don’t know how you can define what a ceiling would look like for Scottish tourism,” Lochhead says.

“Clearly we have a challenge which is to spread tourism throughout the whole of the country and throughout the whole of the year.”

Even in grey, dreich January? There’s more to be done on that, he says. But the Moray MSP says “Scotland is forging a reputation as a sustainable country and a country for the outdoors” and “that attracts people in all weathers”. “What we need to make sure,” he goes on, is that the offering is “up to scratch” and meets “21st century” standards to remain “competitive with other countries”.

That challenge, he says, is “exciting”. It’s a word Lochhead uses frequently regarding this area of his portfolio, which also takes in everything from life sciences to fintech to construction, and he says the sector takes up “a huge part” of his time. It is, he says, “a source of national pride” and one of our key industries. 

He rhymes off recent successes: the Tall Ships Aberdeen, new routes for Scottish airports, the International Island Games in Orkney, the multi-million-pound transformation of Inverness Castle. And he has another list of big moments to come, including this year’s small-scale Commonwealth Games and Uefa’s Euro 2028 tournament, both of which will be centered on Glasgow, and the first ever Scottish staging of the Tour de France’s Grand Depart, set to happen in Edinburgh next year. All three will put the country “on the global stage,” Lochhead says, and be good for business.