Plans for a visitor levy in Edinburgh took another significant step forward on Thursday as councillors agreed key details of the draft scheme.
The levy will see visitors staying in accommodation be required to pay a fixed fee per night of 5 per cent of the accommodation cost, capped at seven consecutive nights.
It will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts.
The so called "tourist tax" is predicted to raise £45-50 million a year by 2028/29.
Councillors voted to approve the move at a meeting of the policy and sustainability committee on Thursday.
A formal 12-week public consultation seeking further input from city residents, visitors and businesses, will commence in the coming weeks.
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A final decision on the plans will be taken in January 2025, with the scheme due to be fully implemented 18 months later in Summer 2026.
Edinburgh would become the first place in the UK to launch such a city-wide levy. Over 60 places around the world already charge tourist taxes, including cities such as Paris, Amsterdam, Lisbon, Barcelona and Prague.
The council said that the introduction of the levy would "drastically help" it to "manage the demands of increased tourism while ensuring sustainable investment in the visitor economy, public services, city maintenance, affordable housing and preserving the capital’s cultural heritage".
Cllr Cammy Day, City of Edinburgh Council leader, said: “We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.
“It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer. By better supporting these services we can secure Edinburgh’s future as a top global destination.
“These proposals have been shaped by the views of residents, visitors and industry. We’re committed to making sure this is the best levy for Edinburgh and will begin our formal consultation as soon as the Scottish Government allow.
“This is a once in generation opportunity for Edinburgh and I look forward to the many benefits a visitor levy will bring, allowing us to reinvest tens of millions of pounds in sustaining and improving the things that make our city so special – for our visitors and residents who live here all year round."
Neil Ellis, Chairman of the Edinburgh Hotels Association, said: “Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.
“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination.”
Christina Sinclair, Director of Edinburgh World Heritage, said: “The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the UNESCO-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced and promoted for future generations.”
Following the council vote, trade body UKHospitality Scotland warned against increasing the proposed levy to an unsustainable level.
Leon Thompson, Executive Director of UKHospitality Scotland, said: “The visitor levy will increase costs for both visitors and businesses in Edinburgh, and that cost must be kept to a reasonable minimum.
“It’s concerning that an even higher levy has been proposed than the 5% in the draft scheme. I would urge extreme caution against setting the levy at a level which could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination.
“Business costs to set up and administer the levy will be significant and it’s positive that the Council has so far backed a mechanism for businesses to recover their costs.
“UKHospitality Scotland will consult with members across Edinburgh during the consultation period and respond, reflecting the views of our members."
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