A COUNCIL has voted to introduce a charge for visitors in a move expected to raise tens of millions of pounds each year.
Edinburgh will become the first city in the UK to charge a transient visitor levy similar to schemes in European cities such as Amsterdam.
The 5% charge will be applied to visitors who come to the city and stay in hotels, B&Bs and properties let out through websites such as Airbnb.
Councillors voted to approve the move at a meeting of the policy and sustainability committee on Thursday.
A 12-week consultation period will be launched in the autumn asking residents whether the proposed 5% charge should be higher or lower.
Response to the consultation will inform the final scheme, set to be agreed in January next year.
City officials have said the proceeds will be used to pay for improvements across the capital, but critics argue the charge will be bad for businesses.
City of Edinburgh Council leader Cammy Day said: “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.
“It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer.
“By better supporting these services we can secure Edinburgh’s future as a top global destination.
“These proposals have been shaped by the views of residents, visitors and industry. We’re committed to making sure this is the best levy for Edinburgh and will begin our formal consultation as soon as the Scottish Government allow.
“This is a once-in-generation opportunity for Edinburgh and I look forward to the many benefits a visitor levy will bring, allowing us to reinvest tens of millions of pounds in sustaining and improving the things that make our city so special – for our visitors and residents who live here all year round.”
Neil Ellis, chairman of the Edinburgh Hotels Association, said: “Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.
“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination.”
Christina Sinclair, director of Edinburgh World Heritage, said: "The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the Unesco-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced and promoted for future generations."
The council said the levy is expected to raise up to £50 million a year by 2028/29, which will be reinvested into initiatives that benefit residents and visitors.
These include a "Well Kept City Fund", affordable housing, city infrastructure, marketing and support for major events and festivals.
Members of the Unite Hospitality and Living Rent trade unions confirmed that the council had agreed to invest £5m of the new tourist tax into building new council and affordable housing.
In a post on Twitter/X, Unite Hospitality said: “Thanks to pressure from @LivingRent_Edi Edinburgh Council have agreed to invest £5m of the new Tourist Tax into council & affordable housing.
🚨 BREAKING 🚨 Thanks to pressure from @LivingRent_Edi Edinburgh Council have agreed to invest £5m of the new Tourist Tax into council & affordable housing. Today, workers took action outside the Council Chambers with a clear message - low paid workers deserve low rents! pic.twitter.com/OMSBALEfva
— Unite Hospitality (@FairHospitality) August 22, 2024
“Today, workers took action outside the Council Chambers with a clear message - low paid workers deserve low rents!”
Tenants' union Living Rent also celebrated the move, adding that it was a “huge step forward” in their campaign.
However, the council’s decision has been met with concern by some business owners.
Leon Thompson, executive director of UKHospitality Scotland, said: “The visitor levy will increase costs for both visitors and businesses in Edinburgh, and that cost must be kept to a reasonable minimum.
“It’s concerning that an even higher levy has been proposed than the 5% in the draft scheme. I would urge extreme caution against setting the levy at a level which could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination.
“Business costs to set up and administer the levy will be significant and it’s positive that the council has so far backed a mechanism for businesses to recover their costs.
“UKHospitality Scotland will consult with members across Edinburgh during the consultation period and respond, reflecting the views of our members.”
