Hoteliers voice reservations over council plan to revisit tourist tax

Plans to introduce a “tax” on tourists staying in Edinburgh’s hotels could take a major step forward this week, with councillors to be asked to approve the idea in principle.

A motion to be considered by councillors tomorrow has also called for council chiefs to work up the details of how a “bed tax” can be introduced.

Under the scheme hotel guests would pay a levy of £1 or £2 per night that would be used to help the city council face up to its funding crisis.

It is estimated that up to £10 million a year could be raised through the scheme. Money raised could also be used to directly fund festivals and events, freeing up money that the council already invests in these areas.

The motion has been lodged by Green councillor Steve Burgess. He said: “The council leader and deputy leader have made positive noises about the introduction of a visitor levy but, as far as I’m aware, there has been no official report on doing that, so I propose getting a report on how it can be introduced to move things forward.

“It is my understanding, looking around other cities in the world where such tourist levies exist, that it does not affect business because it is levied at such a low rate. £1 or £2 will not make a big difference when most hotel rates in Edinburgh start at £50 or £60.”

The council last proposed the idea of a bed tax five years ago but the proposals were dropped after they met with opposition from Holyrood ministers.

It remains unclear whether the council needs support from the UK or Scottish Government to introduce the charge.

Councillor Tom Buchanan, the city’s economic development leader, said: “I am very glad to hear that the Scottish Greens are behind a transient visitor levy.

“I do not believe it would put off visitors as it is down to the city to be as attractive as possible; I don’t not visit Paris because it has a tax on visitor bed nights.”

However, the introduction of a bed tax is firmly opposed by hoteliers. Colin Paton, chairman of the Edinburgh Hotels Association, said: “To do anything that would impact on the economic stability of the Edinburgh hotel sector would be very detrimental to unemployment statistics, as the hotel industry is a big employer.

“Why do they want to target the hotel industry?

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