All eyes on Friday's vote with tourist tax millions up for grabs

​The tourist tax is charged on the provision of overnight accommodation (Picture: Lisa Ferguson)​The tourist tax is charged on the provision of overnight accommodation (Picture: Lisa Ferguson)
​The tourist tax is charged on the provision of overnight accommodation (Picture: Lisa Ferguson)
Edinburgh City Council will meet this Friday and will undoubtedly support the introduction of a visitor levy, or tourist tax, next year. It is a foregone conclusion that councillors will support the principle, but the form is still up for grabs.

Not so much the charge (5 per cent for a maximum of five days) but more on what the income should be spent on. There are several schools of thought regarding this and councillors from the disparate groups will be given the opportunity to try to influence matters.

The report to be put before councillors states that: “A 5 per cent rate, when comparing against international examples where a visitor levy is already in place, would put Edinburgh on par with most other city destinations with a similar offering (e.g. capital city, a strong cultural presence, UNESCO status) while still reflecting the unique offering of the city.”

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So, I would be surprised if councillors wanted to open that particular can of worms by suggesting a different rate although, having said that, the Tories might think otherwise. God loves a trier.

No, the bones of contention are more likely to lie within the spending proposals. With tens of millions of pounds of new money projected annually, councillors are salivating at the very thought.

The report does remind councillors of one the objectives of the levy stating that it should support and develop Edinburgh’s “culture, heritage and festival provision to ensure it remains world leading and competitively attractive to visitors as well as residents”.

Of residents who responded to the council’s consultation exercise 80 per cent agreed with this and 50 per cent of visitors as well as 72 per cent of businesses also concurred.

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Groups will meet to determine their stance on the issue but hopefully they will not lose sight of this objective. They might be tempted to use the levy to partially offset normal council spending but this not what the levy was designed for and the Scottish Government will train an eagle eye on the agreed spending plans to make sure that they comply with the principle of the tax.

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