City chiefs have been asked to investigate whether a controversial charge on visitors staying in Edinburgh can be introduced.
Members of the Lib Dem/SNP coalition running the Capital have confirmed that they agree “in principle” with the concept of a “bed tax” – which would see £1 or £2 added on to the rates paid by hotel guests.
They have now asked officials to provide a report detailing whether the council can introduce a bed tax itself, or whether it needs legislation from the Scottish Parliament.
The issue was debated in the City Chambers following a motion by Green councillor Steve Burgess.
Industry representatives had urged councillors to reject the proposal, which could raise up to £10 million a year for the city.