Edinburgh Council set to vote on introducing 5% ‘tourist tax’

Proposals for a tourist tax in Edinburgh were initially put forward in 2019.

However, legislation giving local authorities the power to apply the levy was not published until May 2023.

If plans are approved, they will be put out for a 12-week public consultation.

A final decision would then be taken in January 2025, with the scheme fully implemented by July 2026.

Manchester introduced a £1 per room, per night fee last year aimed at paying for measures to attract more tourists.

It was estimated to have raised about £2.8m in its first year.

John Lennon, director of the Moffat Centre for travel and tourism business development at Glasgow Caledonian University, said surcharges were not necessarily a barrier to tourists visiting major cities.

“Visitor levies are not new, you see them in cities from New York to Amsterdam, to Manchester.

“In New York, for example, the levy is 15%, so Edinburgh in comparison at 5% looks quite small.

“Those cities have not seen diminution of visitors due to the size of the levy. When we are seeing equivalents elsewhere, it is going to be marginal in terms of price disruption.”