UKHospitality Scotland reiterated that levy costs must be kept to a minimum and that the inclusion of a cost recovery mechanism for businesses was essential.
What's in the report?
The report follows a consultation on the draft Visitor Levy scheme put forward by the City of Edinburgh Council. In total, the consultation had more than 4,500 responses.
Overall, much of the proposed scheme remains the same as in the original proposals. Most notably, the percentage rate for the visitor levy remains at 5%.
There are, however, some changes that are being proposed:
- 1
Bookings eligible for the levy
The scheme has been updated to include a ‘transitional period’ and only bookings made on or after 1 May 2025, for stays on 24 July 2026 or thereafter, would be chargeable.
- 2
Cap on number of nights
The levy will be capped at five consecutive nights per person, rather than seven.
- 3
Type of accommodation included
Temporary campsites and parks are now liable for the levy.
- 4
Business cost recovery
The draft scheme proposed that ‘large’ businesses would be able to recover 1.5% of costs and ‘small’ businesses would be able to recover 2.5% of costs.
That proposal has been changed to a flat 2% of costs for all businesses.
Our response
Leon Thompson, Executive Director of UKHospitality Scotland, said: “It’s crucial that the Visitor Levy was not raised above the proposed rate of 5% and it’s positive that the Council has listened to strong feedback from hospitality businesses on this point.
“Retaining a mechanism for business cost recovery, as called for by UKHospitality Scotland, was essential and I’m pleased that this remains within the revised scheme.
“The proposal to apply the levy to eligible bookings from May this year is a quick turnaround for businesses, who will have to implement new systems and ways of working in just over three months.
“To make this achievable, the Council will have to work at pace to urgently provide clear and detailed guidance for businesses tasked with collecting levy funds.
“Ahead of the Council vote later this month, I would urge councillors to understand that the rate cannot be punitive and to be mindful of the impact any additional costs will have on businesses and visitors.
“UKHospitality Scotland will continue to work with the Council on behalf of the sector to ensure this scheme is introduced as simply as possible for businesses and visitors.”
