Edinburgh to introduce tourist levy

First minister of Scotland, Nicola Sturgeon, has announced that Edinburgh could be the first city in the UK to tax overnight visitors. According to City of Edinburgh Council, this new law could generate £15m (US$17.2m) of annual revenue for the city. Commenting on the proposal, Sturgeon said: “The Local Visitor Levy Bill will give local authorities additional fiscal flexibility. This will help councils, if they so choose, to fund activities related to tourism and related infrastructure.” Responses Council leader Cammy Day said the news was welcome after “years of work”. City residents also welcome the news. A consultation held in 2018 saw 85% of city residents backing the scheme (including accommodation providers and businesses). However, the Scottish Tourism Alliance (STA) said the announcement was “disheartening” and asked to pause the policy to allow the sector to recover from Covid-19. Marc Crothall, chief executive, STA, said: “Additional levies being imposed on tourists at a future date would be very unwelcome. It could potentially impact negatively on business and destinations who are needing to grow a future pipeline of demand in an increasingly competitive marketplace.” What will change? If the law is implemented, visitors to Edinburgh would be charged an additional accommodation fee to fund infrastructure and services in the city. Day said: “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”. The new law is expected to put before the Scottish Parliament in 2023.