Tourism chiefs tetchy as Edinburgh visitor levy nears

The Herald Scotland

2 days ago

The Edinburgh tax will see a 5% fee applied to the cost of an overnight stay in the capital, capped at five nights in a row. Accommodation providers will be required to begin advertising the rate in October for stays starting from July 24 next year – slap bang in the middle of the 2026 summer tourist season.
However, FSB development manager for east Scotland Garry Clark said there remain 'many unanswered questions about how it will operate'.
He said: 'One thing concerning our members is that there is so much to do and little visible of sign progress in the last six months. To take just one example, they are still to see the payment platform which is being built especially for them to transfer to the local authority the levy funds they collect from visitors.
'Now, with just a year to go, the clock is ticking ever louder. It is a sign of just how worried they are that they are taking time out at one of their busiest times of year to raise the issue.
'It would go a long way to reassure the city's accommodation providers if the council takes steps now to provide these businesses with a detailed roadmap containing specific information on what they need to do and when, in order to ensure that preparations for the visitor levy run smoothly.'
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The FSB is not alone in highlighting concern. Shortly before its intervention, groups representing a wide range of the accommodation providers warned the current timeline 'places unnecessary and avoidable strain on the sector'.
'With less than three months remaining before accommodation providers must begin displaying levy-inclusive pricing, there is still no practical or technical guidance from the council or VisitScotland, despite assurances this would be received like the guidance that was published for local authorities back in October 2024,' said tourism industry groups in a letter to the leader of City of Edinburgh Council, Jane Meagher.
'While the levy may appear simple, its application is complex - particularly given the intricacies of accommodation pricing and booking systems. These challenges have been clearly communicated to the Scottish Government, VisitScotland, and the council and are at the heart of why guidance is imperative ahead of implementation. With no guidance, there can be no successful implementation.'
Given the importance of tourism to Edinburgh and Scotland as a whole, it is to be hoped that City of Edinburgh Council is putting the finishing touches to the guidance, and is able to provide some much-needed reassurance to the industry soon.
Elsewhere last week, the issue of the 'Scottish visa' returned to public discourse. As revealed by The Herald, a major survey of more than 500 businesses in Scotland found 70% are supportive of a Scottish visa to allow some migrants to come to work in Scotland to help ease skill shortages, as long as they live in the country and maintain a Scottish tax code.
The latest Understanding Business survey, conducted by 56° North and Diffley Partnership, suggested Scottish employers are interested in a more flexible, regionally responsive immigration policy, particularly in light of workforce shortages and general economic pressures.
Given the growing popularity of Reform among parts of the electorate, John Penman, managing partner at 56° North, suggested immigration could becoming a 'recurring theme' in the run-up to next year's election for the Scottish Parliament.
Meanwhile, The Herald also revealed this week that the sale of a well-known building in the west end of Glasgow, formerly occupied by a charity that provided residential care for more than 200 years, has been sold, resulting in a £1 million windfall for a range of charities.
Balmanno House, located on the corner of Great Western Road and Cleveden Road, fell into administration in April 2023 after facing "severe and unsustainable cash flow problems'. Now, following 'considerable' interest from prospective buyers, the building has been sold for residential development for an undisclosed sum.
Blair Milne, head of restructuring and insolvency at Azets in Scotland, said: 'It gives me great pleasure to see such a substantial sum being made available for distribution to charity. It is very rare for all creditors to receive full repayment together with interest from any insolvency process, let alone such a substantial sum being made available to charities.'