Edinburgh council agrees Scotlandâs first visitor levy charge at online meeting
Visitors staying in the city will have to pay a 5% fee per night, capped at seven nights.
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Scotlandâs first-ever visitor levy has been approved by councillors in Edinburgh.
Members of the City of Edinburgh Council agreed the plans, which will bring in the charge on those staying in overnight accommodation throughout the area.
Visitors staying in the city will have to pay a 5% fee per night, capped at seven nights â which is expected to raise up to £50 million a year for the local authority.
With a rare red weather warning in place during Storm Eowyn, councillors met virtually on Friday to discuss the proposals.
Council leader Jane Meagher has previously described the levy as a âonce-in-a-lifetime opportunityâ to invest in the city.
The new charge could be applied to those staying in hotels, bed and breakfasts and other forms of overnight accommodation. (Jane Barlow/PA)
Last year, the Scottish Parliament approved legislation giving councils the ability to introduce such a charge.
The 5% charge will apply to those staying in hotels, bed and breakfasts, and other forms of accommodation, including holiday lets.
Under the councilâs plans, the levy will begin for stays taking place after July 24, 2026. There will now be a nine-month transition period, with bookings paid for in part or in full after October 1, 2025 being liable for the levy.
Fridayâs full council meeting to discuss the proposal comes after it was backed last week by the authorityâs policy and sustainability committee.
The Green and SNP groups on the city council urged the Labour-run administration to adopt a higher rate of the levy, proposing 7% and 8% respectively.
They argued more money is needed for housing in the city.
Conservative councillor Iain Whyte said his group does not back the levy, arguing it will damage tourism, but put forward proposals as they recognised it would happen anyway.
Ms Meagher said she had sought to accommodate the other partiesâ interests in the administrationâs motion, saying the council had listened to a âhuge range of consulteesâ.
She said: âWe have listened to many voices and come to a conclusion that is sustainable, consistent with legislation and and will enhance our city.
âI want to make this scheme a success.
âIf there are reasons, outwith our control, the scheme is held up by other factors, I would like to point out that 4%, 5%, 7% or 8% of nothing is precisely nothing.â
The Federation of Small Businesses (FSB) warned councillors against a âheadlong rush to be the firstâ to introduce the charge.
Garry Clark, FSBâs development manager for Edinburgh and the east of Scotland, said earlier: âEdinburghâs small accommodation providers havenât yet been given all the information necessary to plan for the potential impact on them.â
UK Hospitality Scotland welcomed that the implementation would only take place in October.
Executive director Leon Thompson said: âNot only has Edinburghâs visitor levy been confirmed, but so too has the hit to the cityâs competitiveness as a leading tourist destination.
âOur fundamental concern has always been that this levy will only serve to make visitorsâ trips to Edinburgh more expensive, ultimately reducing their spending in the wider visitor economy and deterring future visits.
âItâs now the job of the council to use these funds wisely to improve the capitalâs attractiveness as a visitor destination and mitigate the impact of the levy on businesses.â