Tag: Tourist Tax

Edinburgh’s visitor levy scheme takes another step forward

PLANS for a Visitor Levy in Edinburgh took another significant step forward yesterday (22 August), as councillors agreed key details of the draft scheme.

It is anticipated that the levy will generate tens of millions of pounds a year to reinvest in the city’s infrastructure and sustainable tourism from summer 2026.

A formal 12-week public consultation seeking further input from residents, visitors and businesses, will commence in the coming weeks. This will inform the final scheme, which will be agreed in January 2025, allowing the 18-month implementation period to begin.

Edinburgh will become the first place in the UK to launch such a city-wide levy, which will drastically help the Council manage the demands of increased tourism while ensuring sustainable investment in the visitor economy, public services, city maintenance, affordable housing and preserving the Capital’s cultural heritage.

Edinburgh Council backed the Lib Dem proposal to split Transient Visitor Levy income, after a fixed Housing investment, between: 55% city operations 35% culture and 10% destination management.

Key highlights of the draft visitor levy scheme include:

  • Flat 5% charge per night: Visitors staying in accommodation will be required to pay a small, fixed fee per night of 5% of the accommodation cost, capped at seven consecutive nights.
  • Wide range of accommodation: The levy will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts, but will exclude stays in campsites.
  • Funding allocation: The levy is expected to raise £45-50 million a year by 2028/29.  Revenue generated will be reinvested directly into initiatives that benefit residents and enhance visitor experiences, such as a ‘Well Kept City Fund’, affordable housing, city infrastructure, destination marketing and support for major events and festivals.
  • Shaped with industry input: The draft scheme has been shaped by many years of engagement with local businesses, residents, and tourism stakeholders including hoteliers.
  • Expected to launch 2026: When the draft scheme is finalised, early in the new year, the Council will begin working with partners to implement the Visitor Levy and make it live by Summer 2026.

Read the full report considered by Councillors and more information on the visitor levy scheme.

The decision is a victory for Edinburgh housing campaigners and trade unionists:

Council Leader, Cammy Day, said: “We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.

“It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer. By better supporting these services we can secure Edinburgh’s future as a top global destination.

“These proposals have been shaped by the views of residents, visitors and industry. We’re committed to making sure this is the best levy for Edinburgh and will begin our formal consultation as soon as the Scottish Government allow.

“This is a once in generation opportunity for Edinburgh and I look forward to the many benefits a visitor levy will bring, allowing us to reinvest tens of millions of pounds in sustaining and improving the things that make our city so special – for our visitors and residents who live here all year round.”

Neil Ellis, Chairman of the Edinburgh Hotels Association, said: “Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.

“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination.”

Christina Sinclair, Director of Edinburgh World Heritage, said: “The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the UNESCO-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced and promoted for future generations.

Charlie Cumming, Chief Executive of the Edinburgh & Lothians Greenspace Trust, said: “ELGT are in support of the funds raised from the proposed visitor levy to provide additional resource to make improvements to the city’s public spaces. It will be encouraging to see much needed funding for the upkeep of our much-valued greenspaces that provide many benefits to residents and visitors.

“The funding will also provide an opportunity to develop sustainable improvements to help mitigate against climate change and biodiversity loss.”

Roddy Smith, Chief Executive of Essential Edinburgh, said: “We welcome the next phase of the consultation by the City of Edinburgh Council.

“The key principle for the implementation of the visitor levy remains, that the money collected and then distributed should be additional to existing Council resources and not replacement funds and be used to finance projects that primarily support the tourism sector.

“We welcome the three potential funding pots which if used appropriately will have a significant impact on how our city looks, and how we can support our crucial heritage and arts/event sectors.

“Importantly, it will also invest in dedicated marketing and promotion, to ensure our successful tourism sector continues to grow sustainably. With an effective public and private partnership driving this work, we are excited that real progress can be made.

“Edinburgh must not take our tourism sector for granted, and if the finance generated through the levy goes towards supporting our tourism sector, then the city will see economic benefits for our business both directly and in the supply chain, employment growth and much needed large infrastructure projects being delivered. This will materially benefit all the residents in the city.

“Essential Edinburgh will continue our engagement with our members, the industry and Council to move forward towards the finalisation of the scheme.’

Holyrood passes Visitor Levy Bill

TOURIST TAX: Local authorities empowered to invest in tourism

MSPs have backed legislation giving councils a new power to introduce a visitor levy that would raise funding for local visitor facilities and services.

The Visitor Levy (Scotland) Bill will enable local authorities to apply a levy on overnight stays with all money raised to be reinvested in services and facilities largely used by tourists and business visitors. Similar levies already apply in tourist destinations across Europe, including Amsterdam and Berlin as well as in countries outside of Europe, such as Canada.

Councils that want to introduce a visitor levy will be able to do so after they have consulted with local communities, businesses and tourism organisations.

An 18-month implementation period will then apply before any local authorities can introduce a visitor levy scheme in their area. This is to provide adequate time for councils and businesses to put in place the systems needed to collect and administer a levy.

An expert group of representatives from the tourism industry, COSLA and other partners will continue to work together to produce guidance for local authorities putting in place a visitor levy scheme.

Investment Minister Tom Arthur said: “We share a vision with the tourism industry for Scotland to be a global leader in tourism and one of the most economically, environmentally and socially sustainable destinations in the world.

“A visitor levy can help achieve that vision by empowering councils to raise funding, if they wish to do so, that can be invested in local visitor services and activities.

“This Bill has been a clear example of partnership working between the Scottish Government, local authorities and the tourism industry, in line with the New Deal for Local Government and New Deal for Business.

“We have sought to deliver as much flexibility to local authorities as possible and to listen to businesses to make it as easy as possible for them to adopt these measures.”

Councillor Katie Hagmann, COSLA’s Resources Spokesperson, said: “I am extremely pleased that the Visitor Levy Bill has now passed through stage 3 in Parliament. With the introduction of these new Visitor Levy powers, councils across Scotland will have the ability to use a discretionary mechanism, that is firmly based on local flexibility.

“The opportunity of these new powers recognise the great diversity of Scotland’s communities, acknowledging that a one-size-fits all approach does not work. It will allow councils to respond to the needs and circumstances of both the local communities and our important visitor economies.

“The revenue raised through the introduction of visitor levy powers will be to the mutual benefit of residents, tourists and businesses. There will be opportunities for much-needed additional investment, potentially available across a range of facilities and services, from transport and culture to maintaining and improving our world-famous natural heritage and environment.

“The visitor levy is a crucial step towards greater empowerment for local government, and we will continue to progress joint work with the Scottish Government in ensuring the smooth progression of these powers into the hands of councils across Scotland.”

Council Leader Cammy Day has welcomed the Scottish Parliament’s decision to pass the Visitor Levy Bill.

He said: “We will continue to work closely with the sector, @VisitScotland and other partners to develop the scheme in the months and years ahead.”

Former Edinburgh city council leader SNP Cllr Adam Nols-McVey said: “Delighted to see this pass! It took a great deal of work, determination, engagement & collaboration when I led this process & changed @scotgov policy.

“The tourist tax can create investment for Edinburgh to help communities & local businesses thrive!”

The earliest a visitor levy could come into force would be spring 2026.

‘Broad support’ for Edinburgh’s Tourist Tax plans

Edinburgh residents, visitors, and industry back plans for a visitor levy, an engagement exercise has revealed.

Generating close to 4,000 responses in total, a four-week survey conducted by the Council over Christmas and New Year found broad support for the aims and objectives of its Visitor Levy for Edinburgh proposals.

The survey found that Capital residents and community groups are particularly keen to see some of an Edinburgh levy reinvested towards enhancing essential public services, such as keeping the city clean and moving.

Business groups, who have largely fed back via focussed engagement sessions, express greater support for dedicated destination marketing and industry support, while everyone tends to agree a levy should be simple to administer and support the protection and enhancement of Edinburgh’s heritage and world-famous cultural offering.

The full findings – which echo evidence gathered by Council officers over the last six years – will be presented to Councillors on the Policy and Sustainability Committee on Tuesday (12 March).

Members of the Scottish Parliament’s Local Government, Housing and Planning Committee will also meet on the same day to debate amendments to the national Visitor Levy (Scotland) Bill which, if set in legislation as the Visitor Levy (Scotland) Act this Spring/Summer, will allow Scotland’s local authorities including Edinburgh to charge a levy on overnight accommodation.

With much of the Capital’s scheme already researched and developed, Edinburgh is well placed to formally consult on and finalise its plans and is likely to become the first city in the UK to formally adopt a city-wide visitor levy.

Cammy Day, City of Edinburgh Council Leader, said: “Edinburgh has been lobbying the Scottish Government for more than a decade for the local powers to introduce a visitor levy. Finally, we are edging closer to this long-called for legislation.

“Throughout the years, we have repeatedly and actively engaged with our tourism and hospitality industry, as well as with residents, seeking views at various stages on the type of visitor levy Edinburgh needs.

“At every turn, we’ve had overwhelming backing at a community level and have witnessed growing support from those in the tourism and hospitality industry. This is only building as we head towards the last Parliamentary hurdle.

“Edinburgh has an enviable reputation across the world as a bucket list destination and just this week was crowned Europe’s Leading Cultural City Destination at the World Travel Awards and listed as the best city in Scotland to live in, visit and invest. 

“We’re very proud that Edinburgh is one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. A small overnight charge is common practice in other major cities and destinations, so why not here?

“The introduction of a levy will provide a funding stream that would be reinvested in the city and our infrastructure, to the benefit of our visitors and, crucially, the people who live here in our great Capital city all year round.

“While I welcome how far the Bill has come, I also echo the concerns shared by COSLA last week that it needs to allow visitor levies to be more flexible and quicker for Councils to roll out.

“Now that Edinburgh is ready to lead the introduction, I hope to see these adopted in the amendments Members of Parliament debate next week.”

Tourist Tax legislation clears first hurdle

Legislation which would give councils the power to introduce a visitor levy to raise funding for local tourism facilities and services has passed its first vote in Parliament.

MSPs have voted to endorse the general principles of the Visitor Levy (Scotland) Bill, which would enable councils to apply a levy on overnight stays in line with many tourist destinations across Europe. All money raised would be reinvested in facilities and services that are substantially used by visitors, benefitting tourists and local economies.

The proposals were backed in a Scotland-wide consultation led by the Scottish Government. Should they wish to use the powers, councils would be required to consult local communities, businesses and tourism organisations on whether a visitor levy should be brought in and how any revenue should be spent.

Representatives from the tourism industry, COSLA, the Scottish Government and other partners have formed an expert group to consider how the legislation could be best implemented if passed.

Speaking after the Stage One vote in Parliament, Public Finance Minister Tom Arthur said: “I strongly believe that a visitor levy can be a force for good, offering councils the opportunity to use the proceeds to invest in their local economy, bringing benefits to residents and visitors alike.

“This Bill is about giving local government a new power, which they can use as appropriate. It fits with our ambition of fiscally empowering local government and strengthening local democracy, and the New Deal for Business and the New Deal for Local Government are at the heart of the Scottish Government’s approach to this measure.

“We have already taken on board the helpful input we have had from business, councils and others and I am committed to continuing that meaningful and constructive engagement as we move forward.”

COSLA’s Resources Spokesperson Councillor Katie Hagmann said: “I am delighted to see the progression of the Visitor Levy Bill through Parliament.

“The introduction of visitor levy powers is a small but significant step towards maximising the revenue raising powers available to local government, enabling those closest to the community, your democratically elected councillors, the power to decide what works best for their local communities, and recognising the great diversity of needs across Scotland.

“The revenue raised by the levy has the potential to provide much-needed additional investment in our communities, in areas from the natural environment to cultural and leisure facilities, at a time when local government is facing significant strain on resources. Meanwhile, we are keen to ensure that this additional revenue stream helps us to maintain Scotland’s position as a world-leading tourist destination.

“We are fully committed to further joint work with the Scottish Government as the Bill continues its journey through Parliament, as well as continued engagement with colleagues across our important tourism industry.”

Having passed Stage One, the Visitor Levy (Scotland) Bill will be considered for line-by-line amendments by the Local Government, Housing and Planning Committee before Stage Three when the full Parliament considers further amendments and makes a final vote on whether or not to pass the Bill.

If passed, the legislation will give local authorities the power to introduce a visitor levy in all or parts of their area. The levy would be a percentage of the overnight accommodation cost, with the rate set by the local council.

The levy would be collected by the accommodation providers and remitted to the relevant local authority. It would apply to almost all types of overnight accommodation, including hotels, self-catering accommodation and campsites.

Of the 27 European Union member states, 21 charge occupancy taxes. 

Final call to take part in Edinburgh’s visitor levy survey

EDINBURGH residents and visitors have less than one week left to take part in a survey about the city’s plans to introduce a charge on all overnight stays.

With over 2,600 responses already received over the past six weeks, final feedback is being called for before the survey closes on Friday 19 January. The results will be used to inform formal public consultation this spring.

The questionnaire follows the same format to market research carried out back in 2018 which showed strong support (85% backing) for the introduction of a levy in the city.

Since then, Edinburgh’s proposals have been developed further alongside the long-awaited Visitor Levy (Scotland) Bill, which was introduced to Parliament in May.

The Bill means Scotland may be the first place in the UK to legislate for a visitor levy this year, giving local authorities the ability to introduce charges such as those already widespread across Europe. 

Council Leader Cammy Day said: “We’ve had a fantastic response so far and I’d like to thank everyone who has taken the time to share their views with us. Clearly this is a subject residents and visitors feel strongly about and we’re keen to make sure their views shape the proposals and largescale consultation we bring forward in just a few months time.

“We’ve been seeing visitor numbers edge back up towards pre-pandemic levels and new figures from the Scottish Retail Consortium show footfall in Edinburgh has risen 6.4%, bucking a national decline. The Winter Festivals have also proved hugely successful and Edinburgh continues to top charts as one of the best places to visit in the world.

“A levy presents a major opportunity for us to generate millions of pounds in additional revenue to support, sustain and develop the city and this visitor economy – just as so many other major cities do so successfully. It is a way of trying to rebalance the debate and make sure positives are brought back to the industry, to the city, and to our local communities.

“Please take this chance to have your say.”

The council says the Winter Festival programme alone generates £48 million for the city’s economy.

The survey forms part of ongoing engagement work with industry and stakeholders, with officers seeking views on the shape and size of the levy, who it should apply to, and how the funds raised should be invested.

Further industry engagement includes meetings with the Edinburgh Hotels Association (EHA) and Edinburgh Tourism Action Group (ETAG). A series of one-to-one and group meetings with local and national tourism groups and other local government officials is also continuing to take place.

Holyrood Committee Backs Visitor Levy Bill at Stage 1

‘potential to be a positive force for the tourism sector’

The majority of members on the Holyrood Committee considering the Visitor Levy (Scotland) Bill have supported the general principles behind the legislation, which would allow Scottish local authorities to introduce an overnight accommodation levy, following extensive consultation.

Publishing its Stage 1 Report today, the Parliament’s Local Government, Housing and Planning Committee said that a majority of members of the Committee support the general principles of the Bill and a majority of members again found that it was “unlikely that the introduction of a levy in certain local authority areas, assuming a relatively modest rate, would have a deterrent effect on visitor numbers and therefore on the visitor economy in Scotland.”

Conservative MSPs Miles Briggs and Pam Gosal did not support several of the report’s conclusions or the general principles behind the Bill.

A majority of members however agreed with evidence from stakeholders which suggested the introduction of a levy has “the potential to bring significant benefits to visitors, the tourism sector and local residents” whilst recognising that not all of Scotland’s local authorities are expected to introduce a levy and therefore benefit directly from the Bill.

Supporting the Bill’s provision to give local authorities the ability to choose whether to introduce a levy and how to apply it locally, a majority of members of the Committee welcome “the degree of flexibility” provided and believe that this will allow councils to “design and implement it in a way that suits local circumstances.”

The Committee also recognised business concerns around the timing of the legislation, following the impact of COVID-19 on Scotland’s tourism sector and the increased costs of doing business, as well as recent changes to short-term lets licensing.

The Report also said the Committee was “mindful of the concerns of accommodation providers that the introduction of a levy could result in an additional administrative burden” and welcomed the Bill’s requirements to implement localised monitoring and reporting to ensure transparency and accountability.

Considering if any levy should be a flat or percentage rate, the Committee considered this was “perhaps the most difficult aspect of the Bill in terms of determining what the right approach should be” and invited the Scottish Government to undertake further work on this area of the Bill to find a suitable solution.

The majority of members of the Committee agreed that “meaningful consultation with the tourism and accommodation sector to create a genuine sense of partnership working” would “help alleviate the concerns of many in the sector” and show that a levy should bring “long-term benefits” by improving the experience of visitors to areas where a levy is applied.

The earliest date a visitor levy could be applied by local authorities is 2026, which a majority of members of the Committee considered would provide enough time for any “outstanding issues to be resolved through engagement and consultation” with businesses and other key stakeholders.

However, the Committee also invited the Scottish Government to respond to suggestions from some councils that they should be able to introduce a levy sooner than 2026.

Commenting, Committee Convener, Ariane Burgess MSP said: “In supporting the Visitor Levy Bill at Stage 1, a majority of the members of the Committee recognise its potential to positively impact Scotland’s tourism sector.

“After thorough consultation and consideration, most members of the Committee have supported the core principles of the legislation, emphasising that a well-designed levy, at a modest rate, shouldn’t discourage visitors and should bring benefits for the tourism sector.

“A majority of the members of the Committee welcomed and support the flexibility provided by the Bill, which will enable local authorities to customise the levy’s implementation meaning that local levies are designed to suit local circumstances.

“Understanding concerns from businesses and being mindful of possible administrative burdens, a majority of members of the Committee believe that industry worries can be resolved through constructive engagement and consultation at the local level, ahead of any levy being introduced in 2026.

“For the majority of the members of the Committee the Visitor Levy Bill has the potential to be a positive force for the tourism sector, and thank the individuals, organisations and other stakeholders who provided evidence to inform this report.”

Tourist Tax: Views sought to help shape a visitor levy for Edinburgh

Residents and visitors are once again being invited to have their say on Edinburgh’s plans to introduce a charge on all overnight stays.

A new survey launched yesterday (Thursday 23 November) will gather views on the council’s proposals for a visitor levy. The feedback will be used to develop formal public consultation in the spring of 2024.

The questionnaire follows the same format to market research carried out back in 2018 which showed strong support for the introduction of a levy in the city. Since then, Edinburgh’s proposals have been developed further alongside the long-awaited Visitor Levy (Scotland) Bill, which was introduced to Parliament in May.

The Bill means Scotland may be the first place in the UK to legislate for a visitor levy next year, giving local authorities the ability to introduce charges such as those already widespread across Europe. 

The survey forms part of ongoing engagement work with industry and stakeholders, with officers seeking views on the shape and size of the levy, who it should apply to, and how the funds raised should be invested.

Further industry engagement includes meetings with the Edinburgh Hotels Association (EHA) and Edinburgh Tourism Action Group (ETAG). A series of one-to-one and group meetings with local and national tourism groups and other local government officials is also continuing to take place.

Council Leader Cammy Day said: “A levy presents a major opportunity for us to generate millions of pounds in additional revenue to support, sustain and develop the city and our visitor economy – just as so many other major cities do so successfully. 

“We already know from the consultation exercise we carried out back in 2018 that the idea has overwhelming support here in Edinburgh, with 85% backing the introduction of a levy. And our citywide Tourism Strategy 2030 makes clear the need to manage Edinburgh’s enduring appeal as a visitor destination more sustainably. 

“Edinburgh was recently recognised as the most sustainable travel destination in Europe by the World Travel Awards, which is testament to the work we’ve already put in with our partners, but visitor numbers are edging back up towards pre-pandemic levels.

“A visitor levy is a way of trying to rebalance the debate and make sure positives are brought back to the industry, to the city, and to our local communities. We need to continue to manage the impacts of tourism while investing in everything that makes our city such a great place to visit and to live. 

“While this came across loud and clear earlier this month, when the council and over 30 other witnesses provided the Scottish Parliament with evidence for the Visitor Levy (Scotland) Bill, a lot has changed since we last sought views from our residents and visitors. We want to make sure our assumptions are up to date and we’re giving everyone the chance to shape our proposals. Please take this chance to have your say.

Donald Emslie, Chair of the Edinburgh Tourism Action Group (ETAG), said: “As the national legislation to introduce a visitor levy is progressed, it is essential that there are early and ongoing discussions to ensure that the levy proposals for Edinburgh are introduced effectively and achieve the aim of managing the growth of the city’s thriving visitor economy, benefiting businesses, residents and visitors.“

The survey will be open until Friday 17 January 2024. 

Holyrood committee seeks views on Visitor Levy proposals

The Visitor Levy (Scotland) Bill will be the focus of a new public consultation launched today by the Scottish Parliament’s Local Government, Housing and Planning Committee.  

The Visitor Levy (Scotland) Bill was introduced in the Scottish Parliament in May 2023.  

If passed, the legislation will give local authorities the ability to add an additional charge to overnight accommodation if they choose to do so. This will be based on a percentage of the cost, with the rate set by individual councils. 

The Committee is seeking views from businesses, tourism organisations, community groups, individuals, and other key stakeholders over the summer ahead of its consideration of the general principles of the Bill. 

Following the consultation period, the Committee will listen to the views of stakeholders before producing a report setting out its findings. MSPs will then debate the Bill in the Chamber and decide whether it should proceed. 

The Committee is launching the call for views ahead of a meeting in Kirkwall later today with Destination Orkney to discuss their views on the Bill.  

Commenting on the launch, Committee Convener Ariane Burgess MSP said: “We’ve now launched a call for views on the Scottish Government’s Visitor Levy (Scotland) Bill and want to hear from as wide a range of communities, tourism organisations, businesses, and individuals as possible to inform our scrutiny.  

“Tourism is one of Scotland’s leading growth industries, contributing more than £4 billion to our economy each year, so ensuring these proposals work for those connected to the industry is essential.  

“The Bill provides a framework for local authorities to decide how money raised should be spent within local communities, how flexible they can be with where and when the levy would apply and whether certain exemptions should apply, all of which we want to gather detailed views on from urban, rural and island communities across Scotland.”  

The call for views will run from Monday 26th June 2023 to Friday 1 September. 

Those wishing to respond can choose to provide a detailed response to the Committee about the Bill or make brief and general comments, joining the conversation about the Bill on the Committee’s engagement website. 

Visitor levy legislation introduced

Councils empowered to raise money for local tourism

A Bill to enable councils to invest more in local tourism facilities and services through a levy on overnight stays has been published.

If passed by the Scottish Parliament, the Visitor Levy (Scotland) Bill will give councils the power to apply a levy on stays in overnight accommodation based on a percentage of the accommodation cost.

All money raised would have to be reinvested locally on facilities and services substantially for or used by visitors, enhancing the tourist experience and benefitting local communities and their economies.

Under the plans, councils would be required to consult communities, businesses and tourism organisations before putting a visitor levy in place. They would also have to consult on how any revenue raised should be spent.

The proposals follow public consultation and form part of the New Deal for Local Government which gives councils greater financial flexibility and strengthens local democracy.

The Scottish Government has also invited representatives from the tourism industry, COSLA and other partners to join an expert group to consider how it could best be implemented if passed.

Public Finance Minister Tom Arthur said: “Scotland is already a very popular tourist destination and the domestic and international visitors we welcome every year have a significant and positive impact on the Scottish economy. Giving councils the power to introduce a visitor levy is one tool that will provide additional resources to continue to attract visitors to Scotland.

“Levies on visitors staying in paid-for accommodation are already used around the world and it is reasonable for local areas to want a small contribution from tourists to help support and sustain visitor economies.

“There have been significant contributions to the Bill so far from the tourism industry, COSLA and other partners and I look forward to continuing to work with them as it progresses through Parliament.”

COSLA Resources Spokesperson Councillor Katie Hagmann said: “COSLA welcomes the Scottish Government’s move to give councils the power to apply a visitor levy. This represents a key step towards reaching COSLA’s long-standing goal of a more empowered Scottish local government.

“COSLA has consistently called for the ability of councils to set and raise taxes based on what is needed and decided locally. By providing each local authority with the power to set a rate charged to visitors, and to do so independently of the Scottish Government, the Local Visitor Levy empowers local decision-making, with councils able to respond to the needs of their area and the people who live there.

“COSLA is well aware that Scotland’s councils and communities have a great diversity of needs – what works for one council will not necessarily be suitable for another. We welcome the flexibility offered by this legislation, and will consider if there are opportunities for it to go further. We are looking forward to seeing further investment both in tourism and our communities in the future.”

City council Leader Cammy Day has welcomed today’s publication of a Bill by the Scottish Parliament to empower councils to raise money through tourism.

If passed, the Visitor Levy (Scotland) Bill will give the City of Edinburgh Council the power to progress plans for a levy on stays in overnight accommodation, which it has been campaigning to see introduced for over five years.

The council has produced a substantial body of work to back its case for why a levy is the right move for Edinburgh, including a detailed consultation in 2018 which saw 85% of 2,500 respondents expressing strong support for its introduction. This figure included a majority of Edinburgh-based businesses and accommodation providers.

It was estimated then that a levy in Edinburgh could raise in the region of £15m per year to invest in sustainable tourism and managing the impact of tourism on the city. The Bill published today stipulates that levies must be based on a percentage of the accommodation cost, and spent of services substantially for or used by tourists.

Council Leader Cammy Day said: We’ve been building the case for Edinburgh to introduce such a levy for years so it’s great to finally see this Bill brought forward.

“We’re very proud that Edinburgh is one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. That’s why 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, and why we’ve been a key driver working with COSLA and the Scottish Government to see this legislation brought forward.

“A visitor levy is common practice in other major cities and destinations so why not here, in the place named ‘best city in the world’ to visit by Time Out magazine?

“From our citywide consultation held in 2018, our proposals gained overwhelming backing from Edinburgh’s residents, businesses and attractions – and, importantly, also from the majority of accommodation providers.

“Clearly, this model will need to be reviewed in line with the recommendations of the Bill so reshaping this with input from industry partners and communities is our next priority. It has been an extremely challenging period for our culture and hospitality industries so it’s more important than ever that we are fully committed to working together with them and other partners to co-produce a scheme that works best for the whole of our Capital city.”

EDINBURGH SNP POLITICIANS WELCOME INTRODUCTION OF TOURIST TAX LEGISLATION

Tommy Sheppard MP and SNP Council Group Leader, Adam McVey, have today welcomed the publication of a Bill which would give Edinburgh City Council the power to invest more in local tourism facilities and services through a levy on overnight stays.

Sheppard, whose Edinburgh East constituency encompasses some of the City’s most popular tourist attractions like Edinburgh Castle and the Royal Mile, has committed to work with the local tourism industry, City Councillors and MSP colleagues to “get the Bill over the line.”

If approved by the Scottish Parliament, the Visitor Levy (Scotland) Bill will grant councils the authority to impose a levy on overnight accommodation, calculated as a percentage of the accommodation cost.

All funds generated from this levy would be reinvested locally, primarily in facilities and services used by tourists. This reinvested aims to enhance the tourist experience and bring significant benefits to local communities and their economies.

Edinburgh City Council have announced its proposal to implement a nightly charge of £2 for the first week of a stay, to be added to the price of any room. It is estimated the scheme would bring in between £5 million and £35 million a year, depending on the final model agreed.

Commenting, Tommy Sheppard MP said: “It’s great to see the Scottish Government move forward with proposals to give councils the power to apply a visitor levy. It’s particularly welcome here in Edinburgh – a city which proudly welcomes over welcomes over 4 million visitors annually.

“This isn’t a question of fleecing tourists as some suggest, but a rather a matter of fairness. It cost money to keep our streets clean, well-lit, and safe. It costs to support our festivals, to keep our museums and public spaces world class. 

“Residents pay for this through their council tax and yet many living outside the city centre don’t get a lot of benefit from it. It’s only fair that people who come here for a few days or weeks and take advantage of these facilities make a modest contribution too. That’s what this legislation will give Edinburgh City Council the power to do.

“I look forward to working with the local tourism industry, Edinburgh Councillors and my MSP colleagues to get this Bill over the line.”

SNP group leader Adam McVey, added: “Edinburgh has well-developed plans for a tourist tax, and I’m delighted this legislation has moved to the next stage to make these plans a reality.

“More than 90% of residents backed plans for this levy in the City when asked and the engagement from industry means the Edinburgh plan is well thought out and deliverable for businesses too.

“This has been a key ask of local government for the last 6 years and it’s fantastic that the SNP Government have responded so positively through this process to further empower Councils on this policy as well as progressing many others.”

BOYACK CONCERNED THAT VISITOR LEVY IS STILL YEARS AWAY

Following the introduction of a Visitor Levy (Scotland) Bill, Sarah Boyack MSP has written to the Minister for Community Wealth and Public Finance, Tom Arthur, to welcome the Bill but raise concerns that the powers for local authorities to implement a Levy could be years away.

In her letter, the Scottish Labour MSP said that “there are some key aspects of the proposed Bill that lack detail and will have an impact on local authorities like the City of Edinburgh that are ready to get on and introduce a Levy.”

Boyack referred to the Section 12 of the draft Bill which requires local authorities to carry out consultation prior to making a decision to implement a Scheme, raising questions about whether consultation already carried out by the City of Edinburgh Council would be accepted by Ministers to meet the requirements in the draft Bill.

It comes after the City of Edinburgh Council Leader, Cllr Cammy Day, raised concerns that having the power and implementing a Visitor Levy could still be two years away. Sarah Boyack is concerned that the draft Bill means that this is an underestimation.

Commenting, Sarah Boyack MSP said: “I welcome the introduction of this Bill, which will make a huge difference in public purse and will allow our councils to fund vital local services.

“A Visitor Levy Bill is long overdue.

“However, the lack of detail, particularly on timescales, in the draft legislation concerns me given that the warning from the City of Edinburgh Council that having the powers and implementing a Visitor Levy could be two years away is actually an underestimation of the time it will take to get a scheme up and running.

“Our Councils are severely underfunded. Introducing a Visitor Levy like other cities across Europe could raise approximately £15 million extra every year which would go towards funding local services.

“I am keen to ensure that there are no unnecessary hurdles for Edinburgh to implement a Visitor Levy and get the full benefits for local services as quickly as possible.”

In a recent Parliamentary Question on a Visitor Levy the Minister for Community Wealth and Public Finance agreed to meet with Sarah Boyack MSP and representative from Edinburgh City Council on the Government’s proposal. It is hoped that this meeting will take place within weeks.