Tourist tax for Edinburgh visitors one step closer as council considers 5% levy

24 January 2025, 12:40 | Updated: 24 January 2025, 14:03

People staying overnight in Edinburgh could face a tourist tax from next summer under plans being considered by the city's council.

Council members are considering introducing a 5% levy on people staying in hotels, bed and breakfasts and other accommodation, including holiday lets.

A full council meeting is scheduled for Friday but due to the red weather warning in place for parts of Scotland, it will be held remotely rather than in person.

Council leader Jane Meagher has previously described the levy as a "once-in-a-lifetime opportunity" to invest in the city as it has the potential of raising up to £50m a year for the authority.

It comes after Holyrood last year approved legislation giving councils across Scotland the ability to introduce such a charge.

Under the plans, the charge would be applied to bookings made after 1 May this year for stays from 24 July next year.

But 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: "Edinburgh's small accommodation providers haven't yet been given all the information necessary to plan for the potential impact on them."

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He added: "It's not too late for the council to make the sensible decision to pause the scheme and plan properly for its smooth implementation, rather than engaging in a headlong rush to be the first to implement the levy."

Ms Meagher said last week she was "focused on delivering a scheme that will be both fit for purpose and workable" and that would also "benefit our city, our residents and our visitors for many years to come".

The council leader said: "At all stages of this process, we've listened to, and taken account of, the views of residents, industry and other stakeholders - and we mustn't lose sight of just how much positivity there is for the scheme across all of these groups."

(c) Sky News 2025: Tourist tax for Edinburgh visitors one step closer as council considers 5% levy