The transient visitor levy (TVL) is likely to involve a charge of either 2% or £2 per room per night, chargeable all year round on all forms of accommodation, including short-term lets, but capped at seven nights.

Subject to councillors’ approval at their meeting on 2 October 2018, a formal public consultation will be launched on key aspects on the draft scheme.

Respondents will be asked for their views on whether the charge should be a percentage of room cost or a flat fee per night, on the size of the charge, what types of accommodation should be covered, whether it should be seasonal or all-year-round and whether it should be capped.

The council says the money raised will be invested in a fund to manage the consequences of the future success of tourism within the city and respondents will be asked for their views on priorities for how the additional funds would be spent.

It says its earlier outreach has indicated a set of key principles for the new tax. These are that it should be fair to all, including industry, residents and tourists; simple to understand and run; administratively efficient and difficult to avoid.

The council said it was also important that the tax raises additional income and is transparently invested.

Adam McVey, Edinburgh council leader, said: ‘Our work over the summer has focused on key stakeholders, particularly those in the hospitality trade, and we are continuing to engage with them on the details of what an Edinburgh scheme could reasonably look like and options for implementing it.

‘We continue to believe that a TVL is in the best interests of our residents, our tourism industry and those who visit us, and we fully expect the robust, professional approach we are taking to achieve a positive result for the capital.’

McVey said independent research, commissioned by Marketing Edinburgh, found that a small nightly charge would not deter visitors from coming to the capital - consistent with the experience of other cities - and that Edinburgh residents are supportive of the idea.

The proposals have also found favour with Scotland’s other local authorities, with all 32 backing calls for the powers necessary to implement a TVL.

Assuming approval by the council’s corporate policy and strategy committee, the consultation would be expected to commence in late October and be complete by the end of the year.

Details of the proposed Edinburgh transient visitor levy are here

Report by Pat Sweet