In a pioneering move, Edinburgh has announced plans to introduce a tourist tax, following a trend set by other European cities like Amsterdam.
Visitor Levy to Raise Millions for Edinburgh's Capital Improvements
At a committee meeting held on Thursday, councillors approved the proposal and established a fall schedule for a three-month public input session.
Under the new levy, overnight guests will be charged a standard nightly rate equal to 5% of their total accommodation expenses, with a maximum duration of seven consecutive nights.
The regulations cover various forms of paid accommodation such as hotels, short-term rentals, hostels, and B&Bs.
'We can't take Edinburgh's incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.'
Cllr Cammy Day
Edinburgh Council Leader Backs Visitor Levy for City Improvements
Councillor Cammy Day said that the levy presents an innovative way of sustaining the sector and the city.
Income derived from taxation in the city will be utilized to finance multiple initiatives aimed at enhancing its amenities, such as low-cost housing, public facilities, advertising, and event sponsorships.
Some local entrepreneurs are voicing their worries about the council's decision, fearing it could lead to higher expenses for tourists and shopkeepers alike in Edinburgh.
Neil Ellis, chairman of the Edinburgh Hotels Association, welcomed the introduction of the visitor levy, saying it would improve the experience of all visitors.
Christina Sinclair, director of Edinburgh World Heritage, also backed the move, stating that it brings an opportunity to generate crucial funds to invest in the city's historic sites.
The council's forecast indicates that the imposition of the visitor levy will result in a significant increase in annual revenue for the city, with projected earnings of up to £50 million by the time the 2028/29 fiscal period comes to a close.