Edinburgh to bring in tourist tax if SNP win council election on May 5

They believe tens of millions of pounds could potentially be raised from the scheme with the resulting cash used to maintain public spaces, transport links, museums and other cultural facilities.

Known as the transient visitor levy, the policy is included in the SNP's manifesto for the Edinburgh city council elections.

It would apply to people staying in hotels, holiday lets through AirBnB, and guest houses. Only campers would be exempt.

Adam McVey, leader of the SNP on City of Edinburgh Council

A draft bill to give local authorities the power to introduce the tax was in advanced stages until it was halted in March 2020 at the start of the pandemic after the Scottish Government agreed to back the measure put forward by the Scottish Greens as part of their budget negotiations in 2019. 

It is understood that councils are expected to gain the powers during the current term of the Scottish Parliament.

Visitor charges are common in European cities popular with tourists. Venice, Florence and Naples all have charges that can be as high as €5 (£4.20) per night, while Rome charges as much as €7. Other cities charging tourist taxes include Amsterdam, Paris, Barcelona, Lisbon, Berlin and Athens.

Adam McVey, leader of the SNP on City of Edinburgh Council, said: “Edinburgh is a world-class destination for tourists. The festivals are the largest of their kind anywhere in the world and, in most years, Edinburgh Castle is the most visited attraction in the UK outside London. The sector employs tens of thousands of people.

“But we all know that this footfall also strains the city’s capacity. The capital has to work hard to maintain the infrastructure that supports being a tourism hotspot – from keeping the streets clean to providing the transport links essential to getting around.

"And we also have to find ways to keep investing in our cities’ parks, museums, facilities like public toilets, and culture if we’re going to stay in the premier league of holiday destinations. 

“While the Conservatives would just see city residents keep footing the bill, SNP councillors will introduce a fairer alternative.

“Anyone who has been on a city break in Europe knows that per-night charges to tourists are normal. Cities around the continent have realised that this is a simple, fair and accepted way of raising money to help deal with the pressure that comes with being a popular destination.”

He added: “The number one concern right now for business is staff availability, so some of this revenue could also be used to support people into these jobs, not only helping businesses but helping people across the City into fair work.”

A tourist tax was supported by 90% of Edinburgh residents in a consultation held by the City of Edinburgh Council in 2018.

In 2019, the last year before the pandemic, Edinburgh welcomed 4.9m visitors, who each stayed four or five nights on average.

Calculations suggest if tourist levels reach 2019 levels at £2 per night, staying four nights, the city would raise £39.2 million.

Hotels and other tourist accommodation businesses are opposed to the levy arguing it will increase the price of holidays.

Edinburgh is currently run by an SNP/Labour coalition.

The Scottish Conservative Shadow Local Government Secretary Miles Briggs hit out at the SNP's manifesto commitment to a tourist levy for the capital.

“Any plans for a tourist tax would be a serious blow to businesses across Edinburgh. The SNP are woefully out of touch if they think introducing this will help the capital’s recovery in anyway," he said.

“Scottish Conservative councillors will remain firmly opposed to any harmful plans for a tourist tax brought forward by any SNP administration."

He added: “This is all too typical of the SNP’s failure to fully support and engage with businesses. Instead they would clearly to punish them with a further increase in their costs at a time when bills are already skyrocketing.”