Following today’s (24th January 2025) special meeting of Edinburgh Council, members voted to implement the proposed Visitor Levy, aligning with the Council’s position. This decision introduces a nine-month transition period, with bookings paid in part or in full on or after 1 October 2025 set to be liable for the levy.
Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, responded to the decision:
“We are extremely disappointed that Edinburgh Council has failed to properly appreciate the widespread concerns of our sector who are the ones responsible for administering this tax.
While the transition period will be altered by a few months, there remains very clear operational impossibilities. In the rush to be first, rather than getting it right from the get-go, their slapdash approach risks undermining the levy before it has even started. Edinburgh will be a guinea pig for this new tax and hopefully other councils will now take stock and learn from the mistakes made.
While tourist levies are common in other destinations, Edinburgh’s plans make it an outlier. First, it is a tax on a tax: the 5% levy itself is subject to 20% VAT, something unheard of in Europe. Other destinations have a reduced rate of VAT on tourism services, where Scotland does not. Those demanding a levy of 8% or more need a reality check.
Second, this is not an ‘international’ visitor levy paid only by foreign tourists with exemptions for residents, but one applicable to ordinary Scots staying overnight in the capital, those who have already made a financial contribution to local services. And as with all taxes, the only way is up, especially when councils are starved of funds.
Finally, the credibility of those continuing to blame the tourism industry for all manner of ills, especially the relatively small number of short-term lets, is wearing thin. The housing crisis won’t be solved by causing a crisis in Scottish tourism; and those seeking to respond to the Housing Emergency should focus their ire on the capital remaining an empty homes hotspot.
We understand the rationale behind a visitor levy but a badly implemented policy will do more harm than good, damaging the very industry it is supposedly meant to support.”
Scottish Daily Express, Scots to be charged to stay overnight in Edinburgh from next summer under SNP tourist tax, 24/01/25
National, Edinburgh tourist tax passes final hurdle as councillors give go-ahead, 24/01/25
Midlothian View, Edinburgh first city to impose visitors levy, 24/01/25
FSB statement: https://www.fsb.org.uk/resources-page/fsb-scotland-warns-against-a-headlong-rush-on-edinburgh-visitor-levy.html
Edinburgh Reporter, City agrees details of new visitor levy, 24/01/25