The tax paid by tourists who stay overnight in Edinburgh, Scotland can be set at five percent of the cost of accommodation. It is now a proposal from the mayor’s office, and the final amount of the tax and the rules for its collection will be decided by city councilors in future meetings.
The new fee will apply to hotels, guesthouses and rooms and properties rented through popular websites.
New price for tourists
The local government is looking to raise up to £50m a year thanks to the new charge. The money should be used to improve the state of local infrastructure. But business representatives claim that the costs will far outweigh the benefits that would result from the potential increase in the city’s coffers.
The Scottish Greens have previously called for the levy to be set at a higher rate of 8%. housing costs.
But a report by the city’s policy and sustainable development committee, drawn up after public consultations on the program, indicated that any fee would be higher than 5 percent. accommodation costs “can be a barrier for visitors”.
The report also suggested introducing a “transition period” to allow companies to adapt to the changes. This means that only bookings made after May 1 of this year will be taxed for stays after July 24 of the following year.
“Great Benefits”
Edinburgh City Council leader Jane Meagher said the tax would bring “huge benefits” to the city but would not solve the housing crisis. He also disagrees with the idea that the tax discourages tourists.
– People understand the need to introduce guest fees. Tourists who come to the city take advantage of resources whose maintenance is now covered by local taxes, he said.
Leon Thompson, chief executive of trade body UKHospitality Scotland, said it was “crucial” that the tax did not rise above 5%. In his opinion, “clear and detailed instructions” are also needed for companies regarding the implementation of the tax.
Housing crisis in Edinburgh
Edinburgh has been facing a housing crisis for several years due to rising property prices and rents. Homelessness has also risen to record levels.
It is estimated that tourists spend 5.3 million nights in Edinburgh each year. During the August festival season, the high prices of the rooms have already increased, causing many artists to refuse to participate in such events.
Main image source: Shutterstock
