Controversial plans to impose the first 'tourist tax' in Scotland have received the green light.
The city of Edinburgh Council agreed yesterday to continue with 5 percent per night costs for night accommodation.
It applies to a stay that takes place after 24 July 2026, with bookings that were partially or fully paid after 1 October of this year liable for the levy.
It is expected that it will yield up to £ 50 million a year for the authority, which is the first to continue with the indictment, since the legislation was introduced by the SNP government that gave councils powers about a visitor tax.
Tourist authorities released their concern about the impact it will have on the economy of Edinburgh and its competitiveness as a visitor destination.
Leon Thompson, executive director of Ukhospitality Scotland, said: 'Not only is Edinburgh's visitor confirmed Levy, but also the hit in the city's competitiveness as a leading tourist destination.
'Our fundamental care has always been that this tax will only serve to make visitor trips to Edinburgh more expensive, ultimately reduce their expenses in the wider visitor economy and to scare up future visits.
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“It is now the task of the Council to use these funds wisely to improve the attractiveness of the capital as a visitor destination and to limit the impact of the levy on companies.”
Fiona Campbell, Chief Executive of the Association of Scotland's Selftaterers, said: 'We are extremely disappointed that the Edinburgh council has not appreciated the widespread concerns of our sector, those who are responsible for the management of this tax.
'Although the transition period will be changed by a few months, there are very clear operational impossibilities. In the hurry to be the first, instead of getting it from the start, their slapdash approach risks to undermine the levy before it even started.
“Edinburgh will be a guinea pig for this new tax and hopefully other councils will now inventory and learn from the mistakes made.”
She also concerned that Edinburgh will be a 'from a bit' because the levy is subject to 20 percent VAT and is applied to domestic visitors and internationally.
She added: “We understand the reason behind a visitor, but a poorly implemented policy will do more harm than good, and which damages the industry that is probably intended to support.”
The law that gave councils the authority to impose a 'Visitor tax' on overnight stays was taken into effect last September.
This allows guessing to impose extra costs on nocturnal accommodation, but do not contain any rules for the level of reimbursements.
The proposal was approved yesterday during a special virtual meeting of the city of Edinburgh, after it was supported last week by the policy and sustainability committee of the authority.
The Green and SNP groups in the city council insisted on the employment judge to adopt a higher rate of the levy, to propose 7 percent and 8 percent respectively, and claimed that more money is needed for homes In the city.
Conservative councilor Iain Whyte said that his group did not stop the levy and claimed that tourism will damage.
Counselor Jane Meagher said: 'What a historic moment for Edinburgh. The introduction of this groundbreaking visitor Levy means realizing a unique opportunity to invest tens of millions of pounds to improve and support things that make our city such a great place to visit and live in all year round.
'The scheme has been in the making for many years and I am grateful to council officers, companies and residents who have helped it, to shape every step of the road. Its introduction is today declared with an enormous amount of support, not least from the locals. '
