Edinburgh may introduce new ‘tourist tax’ to boost local economy
The city council in Edinburgh has been discussing, in recent weeks, the possibility of introducing a ‘tourist tax’.
The controversial new tax would basically be a ‘bed tax’ where tourists would pay an extra £1 or £2 per night on top of the cost of their accommodation.
Tourist taxes, however, are not a new idea, and have already been introduced in major cities across the world, including Vancouver, and more recently, Venice.
Edinburgh is already a popular location for tourists as they travel to see the Royal Mile, Edinburgh Festival and the castle and this new taxation could increase revenue substantially.
Plenty of local officials are in favour of the idea, Green councillor Steve Burgess, a proponent of the tax, has argued that it would be ‘unlikely to discourage visitors or affect the hotel trade’.
He told the Daily Mail: ‘£1 or £2 will not make a big difference when most hotel rates in Edinburgh start at £50 or £60.’
The introduction of any new levy would require a change in law, which is something that the council has already acknowledged.
Records of the discussions on the possible tax note that ‘whilst agreeing with the concept in principle, it is noted that it would appear to require Scottish Parliament legislation to enable the City of Edinburgh Council to introduce a transient visitor levy’.
The change in law is far from impossible, however some hoteliers in the city have not been so keen on the idea.
Colin Paton of the Edinburgh Hotels Association, told the Daily Mail: ‘This is a lose-lose initiative, and is completely anti-business. It would certainly put people off coming to Edinburgh and coming to Scotland.
‘The City of Edinburgh wants to put itself at a competitive disadvantage to the rest of the UK. It is bad news for consumers, for business, for employees, for the city and for Scotland.’
Mr Paton also suggests that the introduction of the charge could lead to job losses.
Guy Parsons, chief executive officer at Travelodge, agrees with Mr Parsons’s concerns.
‘Tax on visitors staying in Edinburgh would cut tourism revenues and greatly impact the £4billion annual revenue channel that 20million tourists bring to the city,’ he says.
‘In addition, it would also put 200,000 tourism jobs at risk. We should be looking at ways to boost our economy, and not drive business away.’
It is yet to be seen if the tax will be introduced or not.
Picture: Stuart Caie





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