Edinburgh Council agrees Scotland's first visitor levy charge
Tourists will have to pay a 5% accommodation fee per night, capped at 7 nights
Scotland's 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 - 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 "once-in-a-lifetime opportunity" to invest in the city.
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 council's 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.
Friday's full council meeting to discuss the proposal comes after it was backed last week by the authority's 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 parties' interests in the administration's motion, saying the council had listened to a "huge range of consultees".
She said: "We have listened to many voices and come to a conclusion that is sustainable, consistent with legislation and and will enhance our city.
"I want to make this scheme a success.
"If 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."
The Federation of Small Businesses (FSB) warned councillors against a "headlong rush to be the first" to introduce the charge.
Garry Clark, FSB's development manager for Edinburgh and the east of Scotland, said earlier: "Edinburgh's small accommodation providers haven't yet been given all the information necessary to plan for the potential impact on them."
UK Hospitality Scotland said implementation should be paused until at least October this year.
Executive director Leon Thompson said: "Accommodation businesses are undoubtedly going to face significant burdens and additional cost as they implement new systems to deal with the levy.
"I've been pleased that the council has so far recognised that through the business support measures they have included."
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