Edinburgh is on track to become the first city in Scotland to introduce a tourist tax.
Councillors in Edinburgh have voted in favour of a proposed tax that will apply to paid accommodation including hotels, short-term lets, hostels and B&Bs, but will exclude stays in campsites, according to British media.
A consultation period will be launched in the autumn, with residents asked whether the 5% charge tabled in the initial proposal should be higher or lower.
The local authority is aiming to bring it into force from summer 2026, with the scheme estimated to raise up to £50m (R1,1bn) a year by 2028/29, if the final tax is 5%.
Revenue generated from the tourist tax will be injected into public services, city maintenance, affordable housing and preserving the capital’s cultural heritage.
However, opponents said it would deter visitors and risked harming Edinburgh’s appeal as a tourist destination.
The charge will bring Edinburgh in line with cities including Amsterdam, Venice and Barcelona.