As part of budget negotiations with the Greens in Holyrood, the Scottish Government indicated that councils will be given powers to bring in the tax - or transient visitor levy (TVL) - which is widely used across mainland Europe.

Edinburgh would become the first city in the UK to introduce the TVL, and plans will be submitted to the government in due course.

Edinburgh councillors back plans to introduce £2-a-night tourist tax

Tourists on the Royal Mile. Picture: Ian Rutherford

Council leader Cllr Adam McVey assured councillors at a meeting today that “it will be additional to our resources as a city” and that money raised would be “spent locallcy” for “the benefit of our city as a whole.”

The Capital’s tourist tax proposes a flat £2 per night room charge, an exemption for camp sites and a cap of seven consecutive nights. The charge would apply to “all paid accommodation” across the Capital, including short term lets and hostels.

However, Conservative councillors criticised the plans for lacking detail around costs, with some concerns the money would dissolve into the council funding pot.

Evening News readers have also been reacting to the proposals.

Hanna Davidson said: “About time! We have to pay when we travel abroad. For example, I went on holiday to Venice and it was £5 per night and our total payment was £75 on our departure date. It’s only fair that Edinburgh introduce tourist tax.”

Brian Connah said: “£2/night appears rather cheap.”

Robin Felton said: “I visit Edinburgh regularly and I will be happy to pay the tax.

Luc du Léman is more cautiosly welcoming of the proposals, stating: “I’m all for it. Money should be spent wisely - no new vanity projects please.”

John Dunlop said: “I don’t mind as long as the people who live in Edinburgh benefit.”

Tam Carr said: “All for it, and hopefully the money will be ring fenced and spent on things to make our city more attractive to the tourists who are being charged. Edinburgh Leisure being an obvious candidate to get more funds to prevent loss of facilities that are currently proposed.”

However Karin Barth said:”I‘m visiting Edinburgh twice a year for 2-3 weeks and spend a lot of money in local businesses.

“Edinburgh is already an expensive city, why should I pay a night tax? It‘s not very welcoming. For me it’s like a punishment. And about the other European countries, not every bad idea must be copied.

Jonathan Litewski said: “If it was getting used sensibly then I would be all for it. However knowing our council, this will get used for more nonsense while there are massive cuts affecting so many people.

And other readers highlighted that in other European countries which have the tax, their hotel VAT rates are lower than in the UK.

One, Jonathan Frater said: “Oh yes other countries have this tax but other countries also don’t charge full VAT.”

One or two readers even described the tourist tax proposals as “disappointing” and “scandalous.”

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‘About time!’ - Edinburgh reacts to proposed £2-a-night tourist tax