Edinburgh has approved a £50 million tourist tax, becoming the first city in Scotland to implement such a levy. The tax, expected to begin by the 2026 festival season, will impose a 5% charge on overnight stays in hotels, B&Bs, self-catering, and other accommodations, including those booked through platforms like Airbnb.
The revenue generated is said to fund city improvements, such as tidying streets, building affordable homes, and installing underground bins. While supporters argue the tax will enhance Edinburgh’s appeal and help manage tourism pressures, however, this tax may risk deterring visitors and harming the local economy.
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said:
“After being saddled with expensive and onerous short-term let regulations, the last thing small businesses need is an additional administrative burden through a visitor levy.
It is not just operators who will be impacted, ordinary Scots choosing to visit Edinburgh will be hit in the pocket too. The introduction of this levy runs the risk of damaging the competitiveness of our tourism market and price sensitive consumers may switch to cheaper destinations elsewhere in the UK or abroad.
City of Edinburgh Council must tread carefully with these plans. Alongside the upcoming consultation, we would expect a full economic impact assessment to accompany the proposals.”
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