Former Edinburgh councillor, Sue Webber MSP, asked the First Minister on Thursday if The Scottish Government could offer support to accommodation businesses who are responsible for collecting the Visitor Levy in the capital.
She said there are problems for the businesses trying to adapt their booking systems. The charge – 5% of the overnight charge capped at five nights – came into effect on 1 October for pre-bookings of overnight stays on or after 24 July 2026.
The Lothians MSP was told by John Swinney that this is a matter for the council to deal with – and Ms Webber has now penned a letter to the council leader, Cllr Jane Meagher.
In the letter Ms Webber asked for an extension “so that businesses across Edinburgh have the time to implement these changes properly”.
She claims that final guidance was only published last week, but on the council website the council have communicated to businesses: “You can read Edinburgh-specific information for accommodation providers in our guide (published 18 August 2025). This document is intended to aid businesses in understanding their responsibilities under Edinburgh’s Visitor Levy scheme. It will be kept up to date with developments in the run up to 24 July 2026.”
The charge was introduced in the 2024 Visitor Levy (Scotland) Act, and before that The City of Edinburgh Council had progressed the adoption of a levy through their committees. The council was ready to be the first Scottish council to introduce the “tourist tax” on anyone staying overnight in paid for accommodation in the city, and conducted a consultation in 2024 ahead of the legislation being passed.
Since then the council has outlined the procedure for accommodation providers to collect the levy on behalf of the council – for which hotels, bed and breakfast operators and others will retain 2% of the sums collected.
Ms Webber explained to the First Minister that she had been contacted by a constituent who said that accommodation providers are unable to adapt in time to the new rules – which were “only published last week”.
Her constituent – Linwater Caravan Park reported that “Booking systems have been unable to adapt in time, particularly to the 5-night rule; meaning many small operators now face the choice of applying the 5% levy incorrectly to all nights or inputting it manually for every booking. This is creating significant risks of error, bank refund fees, and an extra administrative burden that small businesses can ill afford.”
