Edinburgh backs plan for the UK’S first ‘tourist tax’

●Highlands now tipped to follow the capital in pushing for a visitor levy

Edinburgh will become the first city in the UK to charge visitors a tourist tax after councillors gave the greenlight to impose the £2-a-night levy.

The city council will now submit its controversial proposals to the Scottish Government and ask for assurances the funding remains additional to any budget cuts from Holyrood.

There was a mixed response from politicians and the tourism industry to the new levy, which will mean visitors to the city paying up to £14 on top of their holiday costs.

And other local authorities across Scotland are expected to weigh up imposing their own tourist tax, with the Highlands and Aberdeen City councils having visited Holyrood only last year to put forward their case for such a levy to be introduced.

Highland Council convener Bill Lobban has previously lobbied Holyrood’s tourism committee, arguing a

tourism tax was needed in the region to improve infrastructure for visitors, saying many were put off visiting because they “have to go to the toilet behind a bush”.

The Highlands attract around six million people annually, but many locals have become concerned over the relentless pressure on roads leading onto the Isle of Skye and parking near the Glenfinnan Viaduct – a popular destination for Harry Potter fans.

Edinburgh’s tourist tax proposes a flat £2-a-night room charge, with an exemption for campsites, capped at seven consecutive nights.

The charge would apply to “all paid accommodation” across the Scottish capital, including short-term lets and hostels.

Conservatives blasted the lack of detail, labelling the scheme “a garden tax in shorts and T-shirts” following problems faced by the council in bringing in its new garden waste charge.

But John Donnelly, chief executive at Marketing Edinburgh, said: “Whether you support or oppose the TVL [transient visitor levy], the facts are irrefutable – we have a growing need to protect areas of economic value, yet a dwindling pot of money to do so.

“As indicated by the council’s budget proposals, the public sector can’t fill the gap – and the private sector has shown little appetite to. Something has to give. Solving the problem means we can continue to invest in world-class festivals, protect our built environment and support the promotion of the city, all of which are crucial to building a bright future for Edinburgh.”

As part of budget negotiations with the Scottish Greens in Holyrood, the Scottish Government has indicated all councils will be given powers to bring in a tourist tax, which is widely used across mainland Europe.

Council leader Adam Mcvey assured councillors “it will be additional to our resources as a city”, describing the levy as being “for the benefit of our city as a whole”.

He said: “Unless we find a sustainable way of financing the things we use as a city and keep the tourism going, we will start to see a threat and detriment to that experience.

“We are already seeing pavements congested and we need to find better ways to manage it all. It will be set locally, collected locally and spent locally. We will collect it for the benefit of our city as a whole.”

Councillor John Mclellan, who tabled the Conservative amendment, said: “There’s widespread concern the money will dissolve into the council funding pot or be clawed back by the Scottish Government.

“We are being asked to approve something that the only detail is the pound signs in the eyes of the administration.”

Green and Liberal Democrat councillors supported moving the plans forward on the condition any revenue gained is additional to funding passed on from the Scottish Government.

Green Councillor Claire Miller said: “We have to be really clear that these revenues raised are new tax money. We need to nail down exactly what it will be paying for.”

Outside of Edinburgh, tentative suggestions have been brought forward regarding a tourist tax in Aberdeen as well as Dundee, which has recently invested in the V&A museum and city waterfront as drawcards for visitors.

Moray Council has also voiced its support of the idea.

However, leading figures in Perth and Kinross’ hospitality industry hit out at plans to consider a similar charge in the region, saying it would “kill the goose that laid the golden egg”.

A Highland Council spokeswoman said: “Any possible future changes regarding a transient visitor levy would be subject to consideration by members of the Highland Council and with staff and unions’ consultations.

The spokeswoman added: “The consultation has yet to take place.”