Let’s do the right thing and vote for a tourist tax to benefit city

Edinburgh Council agreed a draft scheme on 22 August 2024, and this scheme has been publicly consulted on. The final scheme will be debated by members on January​​​​​​​ 24

All the signs are that the new tax will win approval. After all, once the scheme is firmly in place, a five per cent charge on overnight accommodation could raise £50 million a year – with £100 million coming into the city’s much depleted bank account in the first three years, from July 2026.

What councillor is going to turn down what is effectively free money?

There are already plans in place to spend the bonus on new affordable homes. The magic of money is that £5 million a year can service a £70 million loan to build much needed accommodation for local residents.

And after the scheme’s running costs have been paid, the rest will go on maintaining the city’s creaking infrastructure, including the replacement of traditional setts so beloved of visitors and the heritage lobby.

There will be cash for the local arts and culture, and I bet the International Festival and Fringe will start drafting their applications on 25 January.

And some money will be invested in marketing the city to attract even more visitors and more tax revenue.

Everyone’s a winner, even the tourists who will have to pay the levy. If you can afford to pay £150 a night for a double room in a city centre Premier Inn, you won’t baulk at the £7.50 visitor’s levy.

Most European cities charge a similar levy. Paris charges €15.60 a night for a “palace”, while the levy on a four-star hotel room is €8.45.

And last year Greece doubled the levy for the whole country, while at the same time changing its name from a tourist to a climate resilience tax.

The Greek government said the money would be used to support reconstruction work after the devastating forest fires of 2023, as well as to enhance climate resilience across the mainland and islands.

When I booked my summer holiday to Thessaloniki last week, I didn’t give the charge a second thought.

I was far too interested at the prospect of seven days’ sunshine, retsina on tap and Greece’s famous hospitality to worry about paying a few extra euros for my Airbnb.

In fact the tourist tax – sorry, visitors’ levy – is probably the only tax in the world that people don’t mind stumping up.

After all, you’re paying to have fun, whether it is sipping ouzo in a taverna by the Mediterranean or dodging rain showers while exploring Edinburgh’s historic High Street.

As Edinburgh’s new council leader Councillor Jane Meagher said last week, “This is…a once-in-a-lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.”

It’s not often our city mothers and fathers have the courage to make a momentous decision.

But if they vote in favour of a visitor’s levy in two weeks’ time, they deserve our deepest gratitude and warmest congratulations for doing the right thing.