MSPs have approved plans to widen the ‘tourist tax’ framework and allow councils to set the visitor levy as a fixed amount.
Previously, local authorities were limited to levying the tax as a percentage rate, which had been criticised by a number of business leaders.
The passage of the Visitor Levy (Amendment) (Scotland) Bill means that councils will now have greater choice in how to design the levy, which is set to be implemented in a number of Scottish cities, including Glasgow, Edinburgh, and Stirling.
Other local authorities paused consultations pending the passage of the bill.
Public Finance Minister Ivan McKee said: “This legislation strengthens the visitor levy by giving councils the flexibility to choose the approach that best reflects their local area, empowers local decision making and ensures the benefits of tourism are shared across communities.
“Tourism is an important sector and we want visitors to have a positive experience as they share our culture, landscapes and hospitality. "
Councils will also be able to adjust the levy depending on the time of year.
Reacting to the announcement, Marc Crothall, chief executive of the Scottish Tourism Alliance, said that changes were a "testament to what can be achieved when government and business work together in a genuinely collaborative way".
“Listening and acting on informed feedback from business means we can have a visitor levy in place that is fit-for-purpose," he added.
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"Through the fixed amount model, it will overall be easier and less costly for accommodation providers and local authorities to administer, and importantly more transparent for our visitors.”
Fiona Campbell, chief executive of the Association of Scotland's Self-Caterers, remarked: “This is a change that the ASSC and other industry colleagues pushed hard for and we are absolutely delighted that policymakers have listened to consistent, evidence-based concerns.
"We sincerely hope that this partnership working can be replicated in other important policy areas in the next parliamentary session.”
