A business leader has warned that plans for a tourist tax in Scotland could have a "detrimental impact" on the industry.
It is warned that the tourist tax, or transient visitor levy "risks damaging the competitiveness of our tourism market".
It comes as a new public consultation has been launched by City of Edinburgh Council to garner opinion on a potential tourist tax.
Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, called for a "full economic impact assessment to accompany the proposals".
She said: "It is not just operators or overseas visitors who will be impacted but ordinary Scots choosing to visit Edinburgh will be hit in the pocket too. The introduction of this levy runs the risk of damaging the competitiveness of our tourism market and price sensitive consumers may switch to cheaper destinations elsewhere in the UK or abroad.
"It is also very concerning an even higher levy has been proposed than the five per cent in the draft scheme and we would urge extreme caution against setting the levy at a level that could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination."
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- Public views wanted on new 'tourist tax'
- Council approves plans for 'tourist tax'
- Will Scotland's new tourist tax work?
Residents, business, and visitors are being invited to have their say on the final plans to raise upwards of £100 million by 2030 from tourism to support the Scottish capital.
Under the plans for the tourist tax, which is being dubbed the visitor levy scheme by the local authority, a charge of five per cent will be imposed on overnight stays for a maximum of seven nights.
Views are also being sought on what types of accommodation should be liable for the tax, potential exemptions, and how the money raised should be used to improve Edinburgh.
Cammy Day, council leader, said the move will create the potential to raise tens of millions of pounds a year.
He said: "This is a once in a lifetime chance for our city to harness its global visitor appeal. Funds raised could go towards supporting vital services such as keeping the city clean and green, preserving some of our incredible heritage sites as well as supporting businesses in the visitor economy industry."
Work to actively seek the views of Edinburgh’s residents and businesses will now come in the form of public drop-ins, open sessions for businesses in the visitor economy industry and accommodation providers, and targeted meetings with various stakeholders and industry groups.
The public consultation is open now and will remain available until December 15. A consultation website has been set up.
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