Edinburgh tourist tax: Scottish Parliament committee launches consultation to give people a say on new law

People are being given a chance to have their say on plans to allow councils in Scotland to impose a tourist tax.

Holyrood’s local government committee is holding a 10-week consultation on the proposed legislation which would pave the way for Edinburgh to impose a visitor levy, charging visitors a small additional amount on the cost of overnight accommodation in the Capital. Edinburgh is set to be the first local authority to introduce a levy once the legislation allowing them to do so is passed by the Scottish Parliament.

The Visitor Levy (Scotland) Bill was introduced in the Scottish Parliament last month. And 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 take evidence from stakeholders before producing a report setting out its findings. MSPs will then debate the Bill in the Holyrood chamber and decide whether it should proceed.

Edinburgh has long campaigned for a tourist tax and in February 2019 agreed a flat-rate of £2 per room per night, capped at seven consecutive nights. But the legislation requires the levy to be set as a percentage of the bill rather than a flat-rate charge. Council leader Cammy Day has said the tax in Edinburgh is now likely to be around four per cent. The revenue raised by the levy will have to be reinvested locally on "facilities and services substantially for or used by visitors”, according to the legislation, but there is no requirement for ministerial approval for council spending plans and public finance minister Tom Arthur acknowledged there would be different priorities in different parts of the country.

Edinburgh council has said its priorities would be investment in waste, cleansing and improvements to public areas and greenspaces. But Cllr Day has said he believes the scope for spending the money raised by the tax needs to be “a bit wider than the government has set out” so that it can benefit the whole city.

Launching the consultation, committee convener Ariane Burgess said: “We want to hear from as wide a range of communities, businesses, tourism organisations 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 consultation will run from Monday June 26 until Friday September 1. 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.

What is the Edinburgh tourist tax? Who will pay and how much? All you need to know about visitor levy