Now visitors to capital may face £1 a night tourist tax

FOR decades, Edinburgh has been cashing in on tourism.

Now council bosses are keen to squeeze even more money out of visitors.

In a landmark motion, councillors voted in favour of plans which would see millions of tourists pay a levy to stay in the city.

The move follows years of complaints about littered streets, rowdy parties and growing fears the historic city is being ‘stripped’ of its character as families move out and tourists move in.

It is estimated a charge of £1 per person per night could generate more than £11million a year but, depending on the mechanism used, the additional income could be as high as £29million.

Similar levies are imposed in several European cities.

City of Edinburgh Council would still need the approval of Holyrood to introduce the charge, or transient visitor levy, as local authorities do not hold the powers to raise individual taxes.

SNP councillor Adam McVey said: ‘This goes to the heart of the question, what kind of city do we want to be?

‘Anywhere else in the world would give their right arm for the vibrancy that goes on here. The transient visitor levy is all about trying to raise additional money, a small levy placed particularly on hotels in a city with regularly one of the highest occupancy rates anywhere outside London.’

Levies exist in major tourism destinations, with visitors staying in a mid-range hotel in Paris facing a £2.50 a night charge. In Venice it is £3.50 and in Rome tourists pay a £5 tax, Europe’s highest.

It is hoped the tax could curb a rise in peer-to-peer accommodation such as Airbnb, where owners rent directly to tourists, and an increase in coach tours which choke the narrow streets.

But the British Hospitality Association criticised the planned move. Spokesman Willie Macleod said: ‘To suggest that tourism businesses and hotels in particular are not making their contributions to public finances is misleading.’

Green MSP Andy Wightman is pushing for the Scottish Government to hand local authorities powers to levy taxes.

But Conservative councillor Graham Hutchison said: ‘Despite a transient visitor levy being championed by SNP and Labour, the council report offers no guarantee that money raised in Edinburgh would stay in Edinburgh, and no guarantee it would not be deducted from our block grant.’

A Scottish Government spokesman said: ‘We have been consistent in our stance that, given the potential impact on tourism, we have no plans to introduce a visitor levy on the tourism sector, already subject to the second highest VAT rates in Europe by the UK Government.’