Exclusive:Edinburgh tourist tax: Accommodation adverts such as Booking.com failing to tell customers if levy included

Politicians have warned the uncertainty surrounding the tax could “drive visitors away” from the Scottish capital.

Research carried out by The Scotsman has shown major booking sites, including Booking.com and Airbnb, do not state clearly whether or not the levy is included in the currently advertised price for rooms available for next summer. This is despite regulations stipulating this information should be available in the terms and conditions of the reservation.

Under rules laid out by the Scottish Government and Edinburgh City Council, bookings in Edinburgh made for dates after July 23 next year should include the levy in the total price shown at the point of booking. The tax is a 5 per cent charge on the accommodation cost for the first five consecutive nights of a stay.

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However, visitors looking to book for next summer are being left in the dark as to whether the price they are being charged is inclusive of the levy, which will be used to fund local visitor facilities and services.

Guidance issued to accommodation providers by the council also recommends that websites and adverts are updated to make it clear the levy is included in the price, but that is at the discretion of the company.

Airbnb said it had provided guidance to hosts on how they could collect the visitor levy during the interim period from October for stays taking place after July 23. The booking company confirmed that prices displayed on Airbnb must always be inclusive of the levy. However, there is no information on its website explaining this to the consumer.

Booking.com refused to confirm if all existing advertised prices included the levy, saying it was the responsibility of individual businesses to ensure they included the tax. Edinburgh Council urged accommodation providers to ensure they follow regulations relating to the levy.

Murdo Fraser, shadow cabinet secretary for tourism for the Scottish Conservatives, said: “This latest confusion sums up the shambolic rollout of the SNP’s visitor levy. This sort of uncertainty will only drive visitors away from the capital at a time when many hospitality and tourism businesses are already struggling.”

Mr Fraser added: “The last thing they needed was more red tape and confusion on top of bills rising as a result of Labour’s National Insurance hikes in particular. The failure to sort out issues like this highlights why we have been demanding the SNP Government pause this shambles and give real clarity to businesses and consumers alike.”

Mimicking similar schemes that exist in places like Germany, Spain and Italy, it is hoped the tax will bring in £50 million annually for Edinburgh.

Council leader Jane Meagher said accommodation providers had a “responsibility” to ensure they kept up with legislation.

She said: “Travel agents and accommodation providers have a responsibility to keep up with all legislation and taxation rules, and should be aware they need to abide by these. Businesses can also find information on working with the levy on both the council’s and VisitScotland’s websites.

“Online travel agents are well versed with visitor levies, which they successfully apply all over the world. They, as well as accommodation providers, have had over nine months to prepare for Edinburgh’s scheme coming into force.

“Council officers have been engaging continuously with businesses and online travel agents. I would urge the sector to get in touch if they need any more information on how to apply the levy.”

Chris Greenwood, senior research fellow at the Moffat Centre for Travel and Tourism Business Development at Glasgow Caledonian University, said larger hotel groups may keep prices the same despite the levy. But he warned smaller accommodation providers may be forced to increase their costs.

He said: “The larger corporates may be able to absorb the cost of the levy. So they'll still be paying the levy, but the prices won't change.

“But I do sympathise with accommodation providers like a bed-and-breakfast owner who now have that kind of thing put on them. It must be quite intimidating to try to implement.”

Mr Greenwood said accommodation providers should already be including the cost of the levy in advertised prices.

He said: “It will be down to the individual organisation on how they present that, but if you are booking for next year now, it should include the 5 per cent [levy].

“You can’t have a situation where you think you’re paying £80 for the room and then you turn up and they say ‘no that will be £84 because of the visitor levy’.”

A spokesman for Booking.com said: “At Booking.com, we remain committed to collaborating with the Scottish Government and relevant local authorities to help implement visitor levies for accommodation providers and visitors.

“We are applying the levy in collaboration with our accommodation partners, who are ultimately responsible to ensure they are adjusting rates to incorporate the correct amount.”

Edinburgh will be the first council in Scotland to enforce a visitor levy.

However, Glasgow City Council also gave the go ahead in June to introduce its own ‘tourist tax’. The visitor levy due to be introduced on January, 25, 2027 will see people pay 5 per cent of their accommodation bill for every night of their entire stay.

It is expected the fee could bring in about £16 million annually for Glasgow after costs and will apply to hotels, hostels, guest houses, B&Bs and self-catering accommodation.