The Scottish government has confirmed the introduction of legislation granting local authorities the power to tax tourists, with Edinburgh set to be first city in the UK to introduce a ‘transient visitor levy’.
Scotland’s First Minister Nicola Sturgeon announced her government would bring in a bill to grant the necessary powers in her ‘Programme for Government’ outlined this week.
The legislation is expected to be go before the Scottish Parliament early next year.
Sturgeon said the Local Visitor Levy Bill would give councils “additional fiscal flexibility”, arguing: “This will help councils to fund activities related to tourism and related infrastructure.”
Edinburgh city council has been campaigning for the powers to introduce a levy on tourists since 2018.
It has proposed a charge of £2 per room per night, capped at a maximum of £14 per visitor.
A public poll in Edinburgh in 2018 found 85% of respondents supported the levy, including just over half of accommodation providers surveyed.
Edinburgh council leader Cammy Day welcomed the promise of legislation saying: “This is fantastic news for the city and a landmark step following years of work to make the case for a visitor levy – something that is common practice in other major cities across the world.”
He argued: “We’re very proud to be one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost.
“We believe it’s right to ask visitors to make a small contribution to help us sustain and improve our tourism offer while managing its impact.”
Day added: “We’ve been building the case for Edinburgh to become the first city in the UK to introduce such a levy, repeatedly making the case to Scottish ministers.
“Our proposals gained overwhelming backing from Edinburgh’s residents, businesses and attractions – and from the majority of accommodation providers.”
He said income generated by the levy would help the council invest in and manage tourism in the city.
Day insisted: “I’ll be pushing the Scottish Government to ensure any income generated is in addition to our block grant funding – not instead of it.”
However, the Scottish Tourism Alliance (STA) described confirmation of the Local Visitor Levy Bill as “disheartening”.
STA chief executive Marc Crothall said: “Any reference to the possibility of additional levies being imposed on tourists would be very unwelcome and could impact negatively on business.”