The row over a so-called 'tourist tax' continues as Airbnb has warned that plans to give councils the power to introduce such a levy could hit Scotland's tourism sector.

The Scottish Government plans to apply a licensing scheme to short-term lets, which have been blamed for a lack of affordable housing in places such as Edinburgh and Inverness.

First Minister Humza Yousaf is set to give local councils the power to introduce a tourist tax, or visitor levy, which is common in many European countries.

Under the plans, a fee as a percentage of visitors’ accommodation costs, would apply to those staying in hotels, hostels, bed and breakfasts, self-catering accommodation, campsites, caravan parks and boat moorings.

Read More: Airbnb warns tourist tax risks 'vitality' of industry after short-term lets licensing

Airbnb has pointed to a study it commissioned in 2022 that warned the licensing legislation could cost the Scottish economy £133 million and put more than 7,000 jobs at risk.

A visitor levy already exists in all or part of Austria, Belgium, Croatia, France, Germany, Italy, Greece, Hungary, the Netherlands, Portugal, Romania, Slovenia, Spain, Switzerland, Slovakia and the Czech Republic though they are not all administered in the same way.

For example, in Budapest visitors pay a 4% tourist tax on the price of their accommodation, whereas in Rome the cost varies from €4-€10 per night depending on the type of accommodation.

In the UK, Manchester introduced a levy on visitors earlier this year which amounts to £1 per day.

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