Councillors have agreed key details for a visitor levy in Edinburgh that could bring in up to £50m a year.
The charge on overnight visits to the Scottish capital could be in place by summer 2026.
Edinburgh is set to become the first place in the UK to launch such a city-wide levy, which will involve a 5% charge per night of the cost of accommodation.
The charge would cover stays in hotels, short-term lets, B&Bs and hostels, capped at seven consecutive nights.
The City of Edinburgh Council said the levy was expected to raise £40-50m a year by 2028-29.
Revenue generated will be reinvested into initiatives like a ‘Well Kept City Fund’, affordable housing, city infrastructure, tourism marketing and support for events and festivals.
It comes after years of discussion at the authority about a tourist tax and engagement with local businesses, residents and tourism stakeholders.
It was not until May this year that Scotland’s parliament agreed to give councils the power to apply a levy overnight stays.
Council leader Cammy Day said the visitor levy was ‘a once in a generation opportunity’ for Edinburgh.
Cllr Day added: ‘It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency.’
A 12-week consultation on the draft scheme will commence ‘in the coming weeks’, after which a final plan will be agreed next January, allowing an 18-month implementation period to begin.
