City councillors have made ‘significant progress’ towards a £41.1m capital investment package, over the next three years, for the City Operations and Infrastructure (COI) fund.
These proposals, discussed at a meeting on Thursday, are subject to final full Council approval, which will be debated on February 12.
The report outlines how part of the revenue from the Edinburgh Visitor Levy will be spent under COI across a wide range of projects and workstreams.
These include supporting capital borrowing for the George Street and First New Town project, developing a masterplan for Portobello Promenade, upgrading and replacing bins, accelerating our setted streets programme, alongside improving existing and providing new, more accessible public toilets.
Reports on the remaining Visitor Levy revenue spending will now be debated at executive committees throughout February:
• All Programmes: Finance and Resources Committee
• Destination and Visitor Management: Housing, Homelessness and Fair Work Committee
• Culture, Heritage and Events and specific elements of City Operations and Infrastructure: Culture & Communities Committee.
Commenting on Thursday’s decision, Transport and Environment Convener, Councillor Stephen Jenkinson said: “The Visitor Levy is a transformational development for the Capital, with today marking an important milestone in the process.
“Edinburgh is already one of the world’s premier visitor destinations, but this comes with a responsibility to properly manage the impacts tourism has on our residents whilst improving visitor experience.
“From short term measures such as increasing the amount of waste and cleansing patrols, alongside long-term strategic projects such as George Street and First New Town, the opportunities which the Visitor Levy could provide for our city cannot be understated.
“We’ve long debated the many things that we’d like to do as a city. We now have the chance to make these a reality, which is something that we should seize with both hands.”
Further Information on Visitor Levy:
After administration costs, which includes establishing and maintaining a contingency fund, a fixed amount has been assigned to:
Housing and Tourism Mitigation (£5m per annum)
Participatory Budgeting (£2m over three years); and
Reimbursement of 2% of remitted funds to Accommodation Providers, to offset the administrative cost incurred from operating in accordance with the Scheme and collecting visitor data.
The remaining funds are then split into the following investment streams:
As the countdown begins to the introduction of Edinburgh’s visitor levy on 1 October 2025, the Association of Scotland’s Self-Caterers (ASSC) is expressing serious concerns over the lack of official guidance and support for accommodation providers.
Since the introduction of the short-term let licensing legislation, the ASSC worked tirelessly to support Scottish operators through the transition, offering practical, reliable information and hands-on assistance where government failed to engage.
In 2022, ASSC CEO Fiona Campbell MBE and licensing solicitor Joanna Millar launched a nationwide Regulations Roadshow to help demystify the legislation and empower operators to comply, delivering 26 such events and partnering with many local councils, reaching nearly 10,000 people.
The ASSC also developed a suite of comprehensive Frequently Asked Questions, now in Version 7, which was widely adopted by VisitScotland.
The ASSC had intended to replicate this model – achieved without meaningful support or funding from the Scottish Government – to help operators in advance of the Visitor Levy going live in Edinburgh.
However, with less than 10 weeks to go, this has proved impossible due to the complete absence of guidance from either the Scottish Government or Edinburgh Council.
The outstanding issues include:
No business-specific guidance – only deficient guidance intended for local authorities
No clarity on VAT status
No method of calculation
No confirmed exemptions framework
No timing confirmed for collection (e.g. at booking, on arrival, or departure)
No detail on how the Levy aligns with the Digital Markets Act
A delayed National Portal, not due until March 2026
No consumer-facing communications strategy.
This lack of preparedness raises serious questions about how the scheme can be implemented fairly, consistently, or without negative consequences for businesses.
The ASSC is calling for immediate clarity from both the Scottish Government and City of Edinburgh Council, and remains ready to support a pragmatic and effective rollout of the Visitor Levy – if and when the necessary tools are put in place.
Fiona Campbell MBE, CEO of the ASSC, said: “We were fully prepared to run another national roadshow to support our members and the wider accommodation sector through this significant change – but we simply cannot provide clarity where there is none.
“It is unacceptable that, with just weeks to go, businesses still have no official guidance on the most basic operational aspects of the Visitor Levy. Once again, industry is left to pick up the pieces.
“We are committed to constructive engagement and practical solutions, but we cannot continue to operate in an information vacuum.
“Scotland’s accommodation providers and guests deserve better than this. The clock is ticking and the Scottish Government and Edinburgh Council need to act now.”
Newly appointed Chair Julie Ashworth has selected 12 Edinburgh individuals to form the city’s first Visitor Levy Advisory Forum.
Bringing experience from the third sector to academia, the hotels industry to local communities, the Forum met for the first time to receive a briefing on the Edinburgh Visitor Levy.
Each member has been interviewed by the Chair and joins the Forum as an individual who is able to bring a broad range of personal expertise and background to the group, rather than a representative for their current organisation.
It is expected that the Forum will meet at least twice a year. They will advise advise Councillors as they agree final details of how the proceeds of the scheme will be invested before it launches next summer.
Forum members will also discuss and provide feedback on the efficiency of the scheme and advise the Council on any recommended modifications when it is reviewed after three years.
The appointments to the Visitor Levy Advisory Forum are:
Lori Anderson, Director of Festivals Edinburgh
Kat Brogan, Managing Director of Mercat Tours and Co-chair of Edinburgh’s Living Wage Action Group
Garry Clark, Development Manager, East of Scotland for the Federation of Small Businesses (FSB) and member of the Edinburgh Tourism Action Group
Audrey Cumberford, Principal and Chief Executive of Edinburgh College
Fran van Dijk, B-Corp Ambassador for B Lab UK and Advisory Board member of Green Element
Neil Ellis, Chair of Edinburgh Hotels Association and member of the Edinburgh Tourism Action Group
Euan Hamilton, Equality and Rights Network Development Worker for Volunteer Edinburgh
Terry Levinthal, Director of the Cockburn Association
Graeme Smith, Regional Industrial Officer, Unite the Union
Douglas Tharby, Deputy Chair of the Edinburgh Association of Community Councils
Kirsten Urquhart, Chief Executive of Young Scot
Alex Williamson, Chief Executive of Scottish Rugby.
Julie Ashworth, Chair of the Visitor Levy Advisory Forum, said: “Edinburgh’s visitor levy scheme has been shaped by years of debate and views from all sectors and communities, and it is in this spirit I’ve appointed a group of people with fantastic experience and expertise from different fields and from civic life. I’m confident we have a really strong Forum in place and we’re excited to get to work.
“Our introductory meeting focussed on ensuring that all members are up to speed with the Edinburgh Visitor Levy scheme, and the requirements of the group itself. Now that Forum members are familiar with this, the real work of advising the Council on levy matters can begin.
“With just over a year to go until the levy is launched, it will be our job to fairly and accurately represent the views of the city, and to encourage the Council at all stages to take these views into account. I’m grateful to every member for coming on board.
Council Leader Jane Meagher added: “I’m delighted that mere weeks after her appointment as Chair, Julie has established a full Visitor Levy Advisory Forum.
“Edinburgh’s upcoming levy will provide us with a once in a lifetime opportunity for raising much needed funds for the city. Important decisions will need to be taken on how this money is spent so that visitors and residents can benefit, so I’m pleased to see a balanced and broad range of views represented on the Advisory Forum.
“These are individuals with great knowledge about their industries and the city, and I understand they’ve had a productive first meeting. I look forward to their input as we prepare to launch Scotland’s first visitor levy next summer.”
Julie Ashworth will lead the new forum to advise the Council on all matters related to establishing Edinburgh’s Visitor Levy and its ongoing performance.
A recruitment panel, comprising senior representatives of the City of Edinburgh Council, Edinburgh Chamber of Commerce, Visit Scotland and Edinburgh Association of Community Councils, identified the experienced executive as the ideal candidate to establish and lead the Visitor Levy Forum.
Councillors formally agreed to the appointment at the full Council meeting on Thursday 8 May.
Julie brings to the role considerable experience in complex stakeholder management and financial planning, and is a skilled networker with a strong track record of building relationships across multiple industry sectors, local and national governments.
She is founder and CEO of BroadReach Leadership Consultancy, whose clients span retail, technology, travel, education and the arts.
An Edinburgh resident, she currently serves as a Public Interest Board Trustee for the Institute of Chartered Accountants Scotland, is Chair of the Board for the University of Aberdeen and has been a longstanding member of the Institute of Directors, where she is Chair of the Scotland Board.
She also contributes on a cross-party working group at the Scottish Parliament and is a member of the Scottish Government’s New Deal for Business Group.
She has previously held executive and advisory positions with leading organisations operating in the retail sector including Marks and Spencer, Liberty of London, IBM, the Spirit Group and Clear Returns.
Council Leader Jane Meagher said: “I’m delighted that Julie has been appointed as Chair of the Visitor Levy Forum. This independent role will be important in helping to deliver the scheme in a way that benefits everyone living, working in and visiting Edinburgh, making sure big decisions are taken in a way that supports the whole city.
“Julie’s proven ability to analyse important information and make sound decisions in high profile organisations will be a great asset to this new position. We believe her clear, determined and approachable style mean she is the right person to establish and lead a well-balanced forum where all views are given fair representation.
“The levy is a once in a lifetime opportunity to invest in the future of our city, and with Julie onboard as forum chair, we are well placed to deliver a scheme that will enhance and sustain the things that make Edinburgh such a great place to live in and visit.”
Commenting on her appointment, Julie Ashworth said: “I am excited to get to work with establishing the forum and encouraging a broad range of views from businesses and communities across the city.
“We are entering a busy period as we build up to the implementation of the levy, and getting underway with the forum is a big opportunity for all of us.
“As a long-time resident of the city, I am passionate about Edinburgh’s heritage and future success. I strongly believe the forum can play a very important role in helping the levy to be delivered in a way that is fair, just and brings benefits to everyone in the years to come.”
Julie’s first task will be to establish the Edinburgh Visitor Levy Forum in line with the duties set out in the Visitor Levy (Scotland) Act, with the first meeting taking place before 24 July 2025.
The forum’s purpose is to discuss and advise the Council on matters to do with the levy, including advising the Council on any recommended modifications to the scheme at the formal three-year review point.
The forum will also be consulted on how the income from the levy will be invested and invited to review and comment on the performance of the scheme and investments once in place. Decisions on amendments to the scheme and how the proceeds from the levy are invested will ultimately be taken by councillors.
It will comprise an equal number of representatives from the community and businesses operating in the city’s visitor economy, and aim for at least 40 per cent of the representatives to be women.
Council officers responsible for the investment streams and officers from the Council’s Programme Management Office will attend forum meetings and may make recommendations to the forum, but will not be members of the forum itself.
Local authorities could be given the optional power to introduce a tax on cruise ships that visit their areas in future.
The Scottish Government is seeking views on the practicalities of such a levy, as well as the potential market implications and effect on local economies and communities.
Analysis shows there were around 1,000 cruise ship visits to Scottish ports in 2024, bringing 1.2 million passengers – an increase of almost 400,000 per year compared with 2019.
Finance Secretary Shona Robison said: “The tourism sector is a crucially important part of the Scottish economy and cruise visits are increasing. The consultation will help to inform the Scottish Government’s decision over whether or not to bring forward legislation and it is really important that we hear from a wide variety of voices on this matter.
“Last year, we held events to hear the views of the cruise ship industry, local government, and others. We want to continue the helpful dialogue which started at those events, and explore further what a cruise ship levy could mean in a Scottish context.”
The Scottish Government has no plans to introduce a nationwide cruise ship levy.
The areas that welcome the most cruise passengers are Invergordon, Orkney, Edinburgh, Lerwick, and Greenock, and the average ship in the five busiest ports carries over 1,000 passengers.
Councillors have formally agreed to introduce Edinburgh’s Visitor Levy scheme. Hailed as a ‘historic moment for Edinburgh’, the decision was taken during a special meeting of the Council held online yesterday (Friday 24 January) .
From 24 July 2026, a 5% fee will be applied to the cost of overnight accommodation in Edinburgh, capped at five nights in a row. Businesses will need to apply the levy to any advance bookings made as of 1 October 2025 for stays on or after 24 July 2026.
The levy is projected to raise up to £50 million a year once established, for the city to invest in protecting, supporting and enhancing Edinburgh’s worldwide appeal as a place to live and visit.
The final proposals for the scheme have been updated to provide accommodation providers and booking agencies with extra time to prepare systems for advance bookings ahead of next summer’s launch.
Responding to yesterday’s decision, Council Leader Jane Meagher said: “What an historic moment for Edinburgh. Introducing this ground-breaking visitor levy means realising a once in a lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round.
“The scheme has been many years in the making and I’m grateful to Council officers, businesses and residents who have helped shape it, every step of the way. Its introduction is declared today with a huge amount of backing, not least from local residents.
“At all stages we’ve listened to and taken account of the views of industry and other stakeholders. It’s in this spirit that we’ve also extended the amount of time hoteliers and small businesses will have to prepare for the changes that are coming in.
“It’s vital that we continue to work closely as we get ready to launch this scheme and deliver the many benefits it is going to bring. We’ve always said this is a city fund and spending decisions need to be taken with a whole city mindset, and we’ll soon be establishing a Visitor Levy Forum with an independent Chair.
“We’ll also be reporting next steps to executive Council committees.”
Neil Ellis, Chair 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.”
https://twitter.com/i/status/1882876043075150079
Donald Emslie, a representative of Edinburgh’s tourism industry, said:“This new income stream presents a unique opportunity to generate significant funds for the city’s long-term development.
“The levy’s potential to generate transformative funds for the benefit of all who live, work, and visit Edinburgh is well recognised and I’m pleased to see a decision made to declare a scheme which will not only support spending on city operations and infrastructure, but sustain Edinburgh’s cultural offering and destination and visitor management.”
There has been some criticism of the decision, however.Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “We are extremely disappointed that Edinburgh Council has failed to properly appreciate the widespread concerns of our sector who are the ones responsible for administering this tax.
“While the transition period will be altered by a few months, there remains very clear operational impossibilities. In the rush to be first, rather than getting it right from the get-go, their slapdash approach risks undermining the levy before it has even started. Edinburgh will be a guinea pig for this new tax and hopefully other councils will now take stock and learn from the mistakes made.
“While tourist levies are common in other destinations, Edinburgh’s plans make it an outlier. First, it is a tax on a tax: the 5% levy itself is subject to 20% VAT, something unheard of in Europe. Other destinations have a reduced rate of VAT on tourism services, where Scotland does not. Those demanding a levy of 8% or more need a reality check.
Second, this is not an ‘international’ visitor levy paid only by foreign tourists with exemptions for residents, but one applicable to ordinary Scots staying overnight in the capital, those who have already made a financial contribution to local services. And as with all taxes, the only way is up, especially when councils are starved of funds.
“Finally, the credibility of those continuing to blame the tourism industry for all manner of ills, especially the relatively small number of short-term lets, is wearing thin. The housing crisis won’t be solved by causing a crisis in Scottish tourism; and those seeking to respond to the Housing Emergency should focus their ire on the capital remaining an empty homes hotspot.
“We understand the rationale behind a visitor levy but a badly implemented policy will do more harm than good, damaging the very industry it is supposedly meant to support.”
The agreed Visitor Levy for Edinburgh scheme:
Scheme Objectives
The overarching aim of the Scheme is to sustain Edinburgh’s status as one of the world’s greatest cultural and heritage cities and to ensure that the impacts of a successful visitor economy are managed effectively and in support of the priorities as set out in the Council’s Business Plan (or equivalent).
The objectives of the Scheme are therefore to Sustain, Support and Develop:
Public services, programmes and infrastructure that provide an enjoyable and safe visitor and resident experience.
Edinburgh’s culture, heritage and events provision to ensure it remains world-leading and competitively attractive to visitors as well as residents.
The city’s visitor economy, by fostering innovation in response to environmental and societal challenges, enhancing Edinburgh’s global reputation while promoting responsible and sustainable tourism.
Scheme area, start date and duration
The Scheme covers the entirety of the City of Edinburgh Council boundaries and will apply to overnight stays from 24 July 2026, booked and paid for (in part or full) on or after 1 October 2025. It will apply indefinitely, or until the Council decides to end or amend it, and at all times of the year.
The levy rate
The levy rate will be 5%, payable for a maximum of five consecutive nights and will apply at the same level, year-round, across the entire City of Edinburgh Council boundary area.
Accommodation liable for the levy
The levy will apply to all overnight accommodation, including those with an annual turnover below the applicable VAT threshold, based within the City of Edinburgh Council boundary.
This includes:
Hotels;
Hostels;
Guest houses;
Bed and breakfast accommodation;
Self-catering accommodation, including short-term lets;
All paid accommodation on caravan sites and campsites, including temporary tent and campervan pitches;
Accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place; and
Any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor’s only or usual place of residence.
Certain accommodation providers may apply to the Council for a discretionary site exemption if they meet both of the following criteria:
The property is occupied by a charity or trustee of a charity; and
Overnight stays must be wholly or mainly for charitable purposes.
This discretionary exemption is aligned with the cases where charities may receive mandatory relief from paying Non-Domestic Rates and may be cross-checked with that register.
Accommodation providers who do not charge for overnight accommodation, or who cater fully for individuals who are exempted from paying the levy are not liable for the levy.
Individuals exempted or excluded from paying the levy
The Visitor Levy is payable by anyone staying in accommodation which is not their only or usual place of residence (temporary or otherwise). Individuals who do not have an only or usual place of residence are therefore not required to pay the levy. This includes people who are homeless, refugees and asylum seekers and people whose homes are unfit or unsafe for habitation. In addition, individuals defined in s. 14 (1) of the Act are exempt from paying the levy.
Individuals who are exempt or excluded will need to pay the levy to the accommodation provider and request reimbursement from the Council, unless their accommodation has been arranged and paid for directly via the Council. Reimbursement can be applied for online, submitting relevant evidence (as detailed below and on the Council’s website) and bank details (to enable payment via BACS). Alternative provision can be made for those who do not have internet access.
Evidence which will be required to be submitted includes:
The name of person exempted/excluded;
If exclusion applies, verification of such status from relevant official body (this can include the Council’s Homelessness service, Social services, relevant third sector provider, Police Scotland etc);
If exemption applies, a copy (scan/photo) of the relevant benefit award letter or similar document;
Booking confirmation/accommodation invoice – the name of the person exempted/excluded should be included on this document; and
Proof of payment for overnight accommodation.
The Council will assess the evidence received and pay the reimbursement via bank transfer within 5 working days if the applicant is found to be eligible.
Collecting and enforcing the levy
Accommodation providers within the local authority area will be liable for the levy. They will be required to submit quarterly reports, detailing the total accommodation charges and the total levy collected to a national online visitor levy portal. The levy will be payable at the same time as submitting returns.
Accommodation providers are required to keep accurate records of all transactions that are subject to the levy. The Council will conduct inspections, as required, to ensure compliance with the scheme and remittance requirements.
Accommodation providers who fail to comply may be subject to penalties.
Appeals relating to decisions made by the Council on the operation and/or enforcement of the scheme can be registered following the Visitor Levy appeal process detailed on the Council’s website. The Council will aim to review and process such appeals within 28 calendar days.
Use of net proceeds
The Act stipulates that the net proceeds of a visitor levy must be spent on facilitating the achievement of the scheme’s objectives and on “developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting [overnight] for leisure or business purposes (or both)”.
After administration costs, which includes the establishing and maintenance of a contingency fund, a fixed amount will be assigned to:
Housing and tourism mitigation (£5m p.a.);
Participatory budgeting (£2m over 3 years) with appropriate audit checks in place to ensure that these funds are spent on facilitating the achievement of the scheme’s objectives; and
Reimbursement of 2% of remitted funds to Accommodation Providers, to off-set the administrative cost incurred from operating in accordance with the Scheme and collecting visitor data
The remaining funds will then be split into the following investment streams:
City Operations and Infrastructure (55%);
Culture, Heritage and Events (35%); and
Destination and Visitor Management (10%).
The Council will make decisions on the use of funds after consultation with the Visitor Levy Forum (see details below), with these decisions delegated to the relevant executive Committees.
Reviewing and changing the scheme
The Council will review the scheme every three years to assess whether it is successfully achieving its objectives and to measure the impact of the scheme on businesses, visitors and communities. The review will be published along with a report detailing how the income has been spent and the benefits which the VL-funded projects have brought.
If the Council wishes to make changes to the scheme following the review, it will publicly consult on the change and publish a report detailing the decision and its justification. Significant changes to the scheme will require an 18-month implementation period.
Significant changes to the scheme include:
Increasing the scheme area;
Increasing the percentage rate; and/or
Removing any exemptions
Visitor Levy Forum
A Visitor Levy Forum will be established to discuss and advise on the VL scheme, including the review of the scheme and any modifications to the scheme. The Forum will also be consulted on how the VL funds will be spent.
The Forum will be made up of an equal number of representatives from the community and from businesses in the city’s visitor economy and at least 40% of the representatives must be women. Council officers responsible for the investment streams and officers from the Council’s Programme Management Office will be in attendance at Forum meetings and may make recommendations to the Forum but will not be members of the Forum itself.
The Council will report publicly and to the Scottish Government on
the amount we collect
how we use the net proceeds, (the amount collected minus costs or expenses of operating the scheme)
how we demonstrate that we are delivering the objectives of the Scheme.
Edinburgh’s intentions to introduce the scheme have been communicated to the Scottish Government.
Councillors have agreed to adopt Edinburgh’s Visitor Levy scheme, subject to further officer advice on the transition period and final approval by Council next week.
The final proposals for the scheme, updated to take account the findings of the 12-week public consultation, were presented by officers at a special meeting of the Policy & Sustainability Committee yesterday (17 January).
Responding to the decision (which is set out in full below), Council Leader Jane Meagher said:“Today represented yet another important milestone in our journey towards securing a visitor levy for Edinburgh – and to realising a once in a lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round.
“At all stages of this process, we’ve listened to and taken account of the views of residents, industry and other stakeholders – and we mustn’t lose sight of just how much positivity there is for the scheme across all of these groups.
“It’s in this spirit that we’re considering the further submissions received from the wider tourism sector this week, ensuring we’re as well informed as we can be ahead of taking a decision next Friday.
“I remain focused on delivering a scheme that will be both fit for purpose and workable – and that will benefit our city, our residents and our visitors for many years to come.”
To approve the following adjusted Motion by Councillor Meagher:
1) To note the outcome of the consultation on the draft Visitor Levy for Edinburgh scheme.
2) To agree to adopt the final Visitor Levy for Edinburgh scheme, as set out in Appendix 1 to the report by the Interim Executive Director of Place, with the exception of the proposed three-month transition period and note this would be subject to further officer advice ahead of the decision of Council, and with the following change:
At 7. Participatory budgeting (£2m over 3 years). The following wording be added “with appropriate audit checks in place to ensure that these funds are spent on facilitating the achievement of the scheme’s objectives.”
3) To agree to begin the recruitment for the Chair of the Visitor Levy Forum immediately, with the appointment subject to the approval of the Council.
4) To agree in principle the use of the Spend to Save fund to support preparatory work for the Edinburgh Visitor Levy scheme as well as its implementation.
5) To refer the report to the Council meeting on 24 January 2025 for approval and ratification of the scheme and the use of Spend to Save funding.
6) To agree to defer the following items in Appendix 6 to the report by the Interim Executive Director of Place as individual reports to each relevant executive committee for discussion / approval.
2. Mitigation of Tourism on Housing
5. City Operations and Infrastructure
6. Culture, Heritage and Events
7. Destination and Visitor Management.
7) To note that, should Council approve the scheme, each investment theme would be presented to the relevant executive committee for approval, and to agree to reaffirm previously agreed principles, namely that spending should:
a) prioritise additionality in terms of investment in services and improvement projects, and,
b) wherever possible and in a way that was consistent with the statutory requirements, be used to benefit communities across Edinburgh and not just the core city centre.
8) To agree that the development of projects under the TVL themes for investment should also demonstrate their adherence to existing Council strategies where applicable.
9) To agree that the Visitor Levy Forum should contain an equal number of representatives from community and business organisation and recommend that at least 40% of the representatives must be women.
10) To note that an initial decision on how housing funds would be spent would come to Housing, Homelessness and Fair Work Committee in May 2025 and to request that this report should set out what options were legally possible across different housing tenures including social housing.
Ahead of today’s meeting of City of Edinburgh Council’s Policy and Sustainability Committee, the Association of Scotland’s Self-Caterers (ASSC) has joined the chorus of industry warnings regarding the operability of the Council’s plans for a tourist tax.
It will also be put to a vote of all councillors next Friday (24th January).
The so-called ‘visitor levy’ – which will be payable by those staying overnight in tourist accommodation, including Scottish residents – is not officially due to start until 24th July 2026. However, affected businesses are expected to start applying the surcharge to advance bookings in May of this year which many have cautioned is operationally impossible.
In recent days, business and tourism stakeholders like the Scottish Tourism Alliance and Federation of Small Businesses have warned of the significant disruption this timeline would likely cause accommodation providers in the capital.
The ASSC joined them in writing to Edinburgh Council and Scottish Government pointing out the insurmountable challenges and calling for a postponement of the implementation period.
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, commented: ““Edinburgh Council have two choices for their tourist tax – they can be sensible or slapdash.
“A sensible approach involves taking stock and listening to the concerns of the small businesses who will be the ones ultimately responsible for collecting this new tax on both Scots and international visitors.
“However, the timeline is totally unrealistic for operators to start applying the tax to advance bookings in just 15 weeks’ time and risks undermining it before its officially begun. The Council wants to be visionary but this could easily end up as a cautionary tale in how not to do public policy.
“Indeed, the Council’s experience with its flawed short-term let regulations, and subsequent court losses, shows what happens when policy is rushed through without due regard to the consequences. The capital’s small businesses simply cannot afford to repeat the same mistakes with a slapdash approach.
“As the ASSC have said from the outset, if you are going to do this, do it right.“
Councillors set to grasp opportunity to introduce a levy that will ‘enhance and improve the city of Edinburgh’
After years of campaigning and engagement – including successfully advocating for a visitor levy to the Scottish Government to bring forward necessary powers – the Council is set to agree the Visitor Levy for Edinburgh scheme this month.
Following support from Councillors in August and the results of a 12-week public consultation, updated officer proposals will be considered by the Policy and Sustainability Committee on Friday, 17 January and by all Councillors at a special meeting on Friday, 24 January.
With over 4,500 responses, the wide-ranging consultation with residents, businesses and visitors reveals most people are aware of and supportive of the Council’s Visitor Levy plans.
Slight adjustments to officer recommendations have been made to reflect the public feedback, including:
5-night cap: Capping Edinburgh’s levy at 5 consecutive nights per person, rather than 7
Campsites and caravans: Temporary campsites and parks proposed to be liable for the levy
Refunds within 5 working days: for all visitors eligible for national exemptions
New transition period: a levy grace period until May 2025 for bookings made for July 2026
Admin support for accommodation providers: equalling 2% of visitor levy income
If agreed, Edinburgh’s Visitor Levy charge will start being applied to bookings made on and after 1 May 2025 to stay in overnight accommodation in the city on and after 24 July 2026, representing a significant step forward in securing a new funding stream for the city.
Once established, the levy is expected to raise up to £50 million a year.
Council Leader Jane Meagher said:“This is the moment we have been working towards – a once in a lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.
“With income of up to £50 million expected once it is established, the funding could provide Edinburgh with the single biggest injection of new funding this side of the millennium, providing a unique opportunity to further improve and protect all that makes Edinburgh the incredible destination it is today.
“We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents. I’m looking forward to working with Councillors to agree the scheme this month, which will allow further work to be carried out on the details of Edinburgh’s new levy.”
Some businesses have expressed concerns over Edinburgh’s ‘Tourist Tax’ proposals, however.
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “Given the importance of the tourist economy to the capital, Edinburgh Council cannot afford to be reckless with these plans. The implementation of short-term let licensing was a policy shambles and we cannot have history repeating itself with the visitor levy.
“Many simply don’t realise that this tax won’t just be paid by international visitors but by ordinary Scots staying in the city – be it for business purposes, seeing friends, visiting family in hospital, or taking in the Fringe.
“Other European cities might have it, but they often charge a small flat rate, don’t charge their own residents, and don’t have a 20% VAT rate. The schemes are not comparable. There is a real risk of undermining Edinburgh’s position as a leading destination.
“This policy will also disproportionately impact small local accommodation businesses, including self-catering and B&Bs, further increasing the administrative burden. The accumulative regulatory impact could cripple them at a time when recovery is precarious.”
“We also fear that the transitional period is too short. The Council still has a lot of work to do to reassure business that these plans won’t erode the very industry it is supposedly meant to support.”
Visitor Levy legislation confirmed to come into force
The commencement date of the Visitor Levy (Scotland) Act has been confirmed as Friday 20 September 2024.
Welcoming the news of the legislation soon coming into force, Council Leader Cammy Day said: “This is a once in a generation opportunity for Edinburgh and I’m pleased to see Government move quickly on this. We’re looking forward to harnessing the opportunities the new legislation will bring.
“Since the Visitor Levy Scotland Bill became an Act on 5 July, we’ve been working on our plans to run a widescale public consultation that will seek views on our draft scheme. We’ve spent many years designing a scheme that works for our city, and we’ve published details of our plans for a 5% levy on overnight stays.
“This charge could raise up to £50 million per year once established, presenting a welcome and innovative way of sustaining our tourism sector and our incredible city. I’m looking forward to people from all over the city, and the world, sharing their views.”
The Council will launch a formal 12-week public consultation on the draft Visitor Levy scheme for Edinburgh soon after the Visitor Levy (Scotland) Act commences on 20 September. The results will inform the final scheme, which will be considered by Councillors early next year.
