Dubbed a “once in a lifetime opportunity” by City of Edinburgh Council leader Jane Meagher, the latest proposal follows years of campaigning and a wide-ranging consultation with residents, businesses and visitors that garnered over 4,500 responses, largely supportive of the initiative.

Following support from councillors in August and the results of a 12-week public consultation, updated officer proposals will be considered by the Policy and Sustainability Committee on Friday, 17 January and by all councillors at a special meeting on Friday, 24 January.

Slight adjustments to officer recommendations have been made to reflect the public feedback, including:

• 5-night cap: Capping Edinburgh’s levy at five consecutive nights per person, rather than seven.
• Campsites and caravans: Temporary campsites and parks proposed to be liable for the levy
• Refunds within 5 working days: for all visitors eligible for national exemptions
• New transition period: a levy grace period until May 2025 for bookings made for July 2026
• Admin support for accommodation providers: equalling 2% of visitor levy income

If approved the scheme will officially launch on 24 July 2026. There will be a three-month grace period until the start of 1 May 2025, at which point the levy will be charged on accommodation booked from 24 July 2026.

Council leader Jane Meagher said: “This is the moment we have been working towards – a once in a lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.

“With income of up to £50m expected once it is established, the funding could provide Edinburgh with the single biggest injection of new funding this side of the millennium, providing a unique opportunity to further improve and protect all that makes Edinburgh the incredible destination it is today.

“We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents. I’m looking forward to working with councillors to agree the scheme this month, which will allow further work to be carried out on the details of Edinburgh’s new levy.”

Responding to the updated Edinburgh Visitor Levy proposal, Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “Given the importance of the tourist economy to the capital, Edinburgh Council cannot afford to be reckless with these plans. The implementation of short-term let licensing was a policy shambles and we cannot have history repeating itself with the visitor levy.

“Many simply don’t realise that this tax won’t just be paid by international visitors but by ordinary Scots staying in the city – be it for business purposes, seeing friends, visiting family in hospital, or taking in the Fringe.”

Ms Campbell continued: “Other European cities might have it, but they often charge a small flat rate, don’t charge their own residents, and don’t have a 20% VAT rate. The schemes are not comparable. There is a real risk of undermining Edinburgh’s position as a leading destination.

“This policy will also disproportionately impact small local accommodation businesses, including self-catering and B&Bs, further increasing the administrative burden. The accumulative regulatory impact could cripple them at a time when recovery is precarious.

“We also fear that the transitional period is too short. The council still has a lot of work to do to reassure business that these plans won’t erode the very industry it is supposedly meant to support.”