Thursday, August 22, 2024 Edinburgh City Council has approved the introduction of a new tourist tax aimed at generating up to £50 million annually. The Scottish capital will become the first city in the country to implement a transient visitor levy (TVL) on overnight stays, with the funds earmarked for enhancing the city’s infrastructure. The levy will apply to hotels, bed and breakfasts, self-catering accommodations, and properties rented through platforms like Airbnb.
While similar charges are already in place in major cities worldwide, opponents argue that the tax could deter tourists and damage Edinburgh’s reputation as a prime travel destination. The decision was made during a policy and sustainability committee meeting, where the draft proposals received a favorable vote. A 12-week consultation period is scheduled to begin this autumn, during which residents will be asked whether the proposed 5% charge should be adjusted.
The Scottish Greens have already suggested increasing the levy to 8%, with the tax expected to be fully implemented by July 2026, just in time for the festival season. The funds raised from the tax will primarily be used to improve public spaces in Edinburgh. Council Leader Cammy Day mentioned that £5 million would be allocated to housing, with 35% of the revenue directed toward supporting the arts sector.
However, a motion by the council’s SNP group to increase the housing allocation to £20 million was defeated. Day dismissed concerns that th.