Over the past 10 years Edinburgh has been fighting to drop a tourist tax plan that would put taxes on tourists to the area in order to raise money. This plan was finally abolished and is making people around the city happy. Many local business leaders and politicians were against the new tax plan. During the last election the council renewed its interest in the plan by adding an extra charge to hotel rooms that would help fund city events and help raise around £5 million for the city.
The government wanted to put this in place to raise revenue for the city, however, it was force to drop the plan due to so many current taxations on hotels, slow economic conditions for many industries, and increased competition from other parties. The city said that over £10million is spent each and every year in the tourism sector and that investment brings in well over £600 million for the city.
Those in the hotel industry were highly opposed to such a taxation as well as other previous attempts to increase taxes on hotels. Last year the city wanted to add a tax that would add on £1 to £2 per night per room. They said it would raise around £5 million in more revenue.
The Hotel Association in Edinburgh said “This taxation completely goes against businesses and it wouldn’t only be bad for consumers but bad for business, employees, and the city as a whole”.
After the scrapping of this taxation plan, the city is trying to propose a new voluntary program that they fill will help to raise more revenue for the city. There have been other cities around the world that have imposed such taxes on hotel rooms, cities like Las Vegas and Venice have already adopted the program.