On 16 January the Scottish Parliament voted in favour of a bill allowing councils to introduce a tourist tax, which has sparked a debate on how the revenue should be spent.
An 18-month lead-in period means that the tourist tax will not be introduced until April 2026 at the earliest.
Opinions over how the revenue from the tax should be spent are split, as the City of Edinburgh Council wants to focus spending on culture and the arts.
However, the Cockburn Association stated that the tax should be “targeted to address the impacts of tourism on residents and the local environment” in an article released on its website.
The Cockburn Association continued that “over 70 per cent of all traditional buildings within the World Heritage Site have a critical repair need” and that “we should be cautious about using such a levy to support commercial businesses and enterprises.”
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City of Edinburgh leader Cammy Day called for the levy to be spent on subsidising tourism infrastructure and supporting the festivals that helped make Edinburgh the “‘best city in the world’ to visit by Time Out magazine.”
Hogmanay celebrations last month were reported by the Guardian to have cost the City of Edinburgh Council £500 million.
Revenue from the tax is predicted to be between £5m and £35m per year.
The rate of the tourist levy has not yet been decided, however a proposed flat rate of £2 per night was rejected in favour of either a percentage of bookings on overnight accommodation or a council-tax styled band system.
The Cockburn Association also said any levy should be higher on short term letting agreements, given the strain they put on local housing and services such as refuse collection.
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Before becoming law, amendments to the Visitor Levy (Scotland) Bill must be considered, before it is debated again and given Royal Assent.
Proposals such as how the tax could apply to campervans, as well as exemptions for students and under 18s, are to be considered.
Students in Edinburgh are already exempt from paying council tax.
Councils are eager for the tax to be introduced as quickly as possible, however the Scottish government rejected suggestions to reduce the 18-month lead in period.
Tourist taxes are common in Europe and typically range between €2 (£1.70) and €5 (£4.30) per person per night.
Holiday destinations including Amsterdam, Berlin, Barcelona and Vienna currently have tourist taxes, and in 2024 Venice and Valencia will be joining the list.
Bhutan has a daily tourist fee of £157 for adults.
“Royal Mile” by thisisedinburgh is licensed under CC BY 2.0.
