Edinburgh Moves Forward with Tourist Tax Plans

Edinburgh city councillors have approved a draft scheme to implement a ‘transient visitor levy’ aimed at generating revenue for the financially struggling local authority. The proposed charge, set at five percent on accommodations including hotels and short-term rentals like those listed on Airbnb, is expected to raise approximately £50 million annually. This initiative positions Edinburgh as the first local authority in Scotland to adopt such a tax, aligning it with other major tourist destinations like New York and Amsterdam. The decision has sparked significant debate, particularly among local businesses. Miles Briggs, a representative of the Scottish Conservatives, criticized the levy as a “bitter blow” to businesses already burdened by high taxes. He expressed concerns that the new charge could deter visitors, potentially harming the local economy. Council estimates suggest that the levy could generate up to £130 million over its first three years, with implementation costs projected at £650,000 and annual operational costs reaching nearly £1 million. The levy will impose a flat five percent charge per night, capped at seven consecutive nights. Although Green party members advocated for an eight percent rate during the council meeting, their proposal was rejected. However, the five percent rate remains subject to change before its official introduction. Industry representatives, including those from UK Hospitality Scotland, have voiced apprehension over the potential for even higher charges, while some organizations, such as the Edinburgh Hotels Association, have expressed support for the levy.