Edinburgh council bosses have called for a 'tourist tax' following a huge spike in visitors to the city following the Queen's death.
Chiefs said the taxes could bring in £15 million extra a year. Stats show the tourism industry in the city supports around 30,000 local jobs, with overnight visitors spending over £1.9billion a year.
City of Edinburgh council leader Cammy Day hopes to bring forward a timeline for the levy in November - and said 85 per cent of locals and businesses supported the tax.
He warned the city will struggle to manage large scale events in the future without investment. Edinburgh would be the first city in the UK to introduce the tax.
Mr Day said: "The scenes in the last ten days from Edinburgh's response to the death of the Queen were exceptional.
"And I have no doubt that these stunning images of our city, which were beamed around the world to billions of people, will translate into even more interest in Edinburgh as an incredible place to visit.
"This is, of course, hugely welcome - particularly for businesses following the hardship of the pandemic and in the face of steep inflation. But we must acknowledge that spikes in visitor numbers to Edinburgh are not without their challenges.
"As we all know, the city's population more than doubles in August during the Festivals, and Hogmanay remains one of the most famous celebrations on the planet.
"While we are of course well versed in hosting major events, Edinburgh is a small city. We need to manage how the city's popularity affects our people and how it impacts our streets.
"Our economic strength has brought us a great deal of success but, without an additional income stream, we will struggle to manage and support this success in the future.
"That's precisely why we've worked so hard to convince the Scottish Government to give us the necessary powers to introduce a visitor levy, or 'tourist tax'."
Mr Day said he was pleased First Minister Nicola Sturgeon has confirmed that ministers will lay a bill before parliament early next year. Writing in the Edinburgh Evening News he said he is 'determined' to see the tax implemented as soon as possible - with hopes it could bring in £15m a year.
He said: "Edinburgh is a gateway for tourism to the whole of Scotland and significantly contributes to the nation's hospitality sector and economy. Sector statistics say that it supports around 30,000 local jobs, with overnight visitors spending over £1.9bn a year in the city.
"We estimate that a levy could raise in the region of £15m per year - funding which could secure additional resources to invest sustainably in and managing the success of tourism.
"I want to be clear that these any visitor levy would be for the benefit of all of Edinburgh, not just the city centre. All the research suggests a small levy would not deter tourists from visiting the Capital.
"And, when we consulted with residents and businesses - including accommodation providers - 85 per cent had strong support for the levy's introduction."
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