Simita Kumar: Tourist Tax - lifeline or missed opportunity?

Councillor Simita Kumar is leader of the SNP group on Edinburgh City Council

Love it or loathe it, tourism is essential for Edinburgh’s economy. Each year, millions flock to our historic streets, filling our hotels, restaurants and shops, generating significant revenue that sustains countless jobs and businesses. But this influx of visitors has a downside.

The demand for short-term lets (STLs) has squeezed the housing market, driving up rents and reducing the availability of homes for local people and young families. The very success of our tourism industry is contributing to the housing emergency we now face.

The SNP’s implementation of STLs has significantly curbed its rapid rise. Despite these measures, thousands of homes that were already operating as STLs continue to remain unavailable for long-term housing, exacerbating housing supply issues.

This brings us to the tourist tax. Estimates suggest the council could receive £45-£50 million annually from this levy. However, the proposal to allocate only £5m for housing and £6m to promote Edinburgh as a destination seems utterly outrageous.

Yet this is exactly what councillors across all parties except the SNP voted for. SNP councillors proposed to quadruple the housing allocation to £20m.

Imagine what £20m annually could achieve in addressing the housing crisis. We could build an extra 2200 social homes over ten years instead of just 550.

The choice was obvious, yet Labour, Tories, Lib Dem, and Green councillors have squandered a golden opportunity to prioritise housing over tourism promotion.

Let’s be clear: Edinburgh did not declare an emergency to promote itself as a tourist destination. What we desperately need is housing. Real, affordable, social housing.

Living Rent led a powerful campaign called ‘Homes not holiday lets’ but was anyone listening? If we’re serious about tackling the housing emergency, then it’s time to put our money where our mouth is.

The tourist tax is an opportunity to do just that, by investing in the long-term well-being of Edinburgh’s residents rather than simply enhancing its appeal to tourists.