Visitor Levy to fund up to 1,600 homes reserved for tourism workers
Plus: New hotel planned for Festival Square; and two fatal crashes within hours on A70
Millions of Visitor Levy cash to create homes reserved for tourism workers
The Capital’s Visitor Levy is to be used to fund as many as 1,650 homes which will be reserved for tourism industry workers.
The city council intends to invest £5million a year in affordable and mid-market housing from the funds raised by the so-called tourist tax once it is introduced next year.
The local authority has been warned its plan to invest in housing is open to legal challenge because the legislation underpinning the Visitor Levy stipulates funds must be spent on supporting the tourism industry.
A report due to go before the councils housing, homelessness and fair work committee next week makes clear the housing will be targeted at those demonstrably working within the tourist economy.
That could include affordable city centre housing, close to the majority of tourism jobs, which would particularly help those working unsocial shifts.
Where does the money come from?
Visitors will pay a 5% levy on the cost of their overnight accommodation in the city from July next year, with the tax capped at seven nights. Edinburgh is the first city in Scotland to introduce a visitor levy, and the new tax is expected to raise up to £50 million each year. The council has identified a number of key funding areas, including support for festivals and events; infrastructure used by visitors; destination marketing; and housing for tourism industry workers.
How will the housing cash be used?
The £5m per annum earmarked for housing could support borrowing of £70m “which when used alongside the income generated from the rents could unlock around £135m of funding for housing”. This could pay directly for around 500 affordable homes, but while this would deliver most homes fastest, suitable sites have not yet been clearly identified. Alternatively, the report says, the funding could be used to help kickstart stalled city centre housing projects, in return for some of the homes being reserved for tourism workers. The money could also be used to provide grants for council or housing association homes, which could pay for around 1,650 affordable homes over 30 years.
Tackling a crisis for tourism workers
Tourism workers often struggling for affordable housing within reasonable travel time of their workplaces in Edinburgh – especially during unsocial hours. “There are around 30,000 people working in tourism in Edinburgh (many more if you expand visitor economy to include hospitality),” the report states. “Because of the wide range of roles and differing working hours, it is difficult to estimate average salary within the sector. Annual salary for the National Minimum Wage, based on the current rates for those aged 21 and over, would be £25,396 per year for a 40-hour work week.”
How will it work?
The council report says work still needs to be done to clearly identify those who can demonstrate they work within the tourism industry. However, those offered housing under the scheme would not be evicted if they switched careers. “It is acknowledged that people may change occupation during their tenancy and the council would not end tenancies because of this,” the report states.
Who will be consulted?
The Visitor Levy Forum, which will include equal representation from the tourism sector and the community under an independent chair, will be asked its views on the spending plans. Experienced non-executive director Julie Ashworth is expected to be appointed as chair next week. However, the final decision will be taken by the city’s elected councillors, and that is likely to be in early 2026.
YOUR EDINBURGH BRIEFING
POOR SIGN: A misspelled road sign on the A1 near Musselburgh is to be corrected. Photographs of the sign directing motorists to Tranet (instead of Tranent) have been widely shared on social media. East Lothian said the sign on the eastbound lane, just before the turn-off to Queen Margaret University, “designed and installed by a contractor as part of the works at Queen Margaret University”, adding: “We are currently working to have the error corrected.” There but for the Grace of God…
BRIDGE-FLATION: North Bridge is set to fully reopen next summer, eight years after restoration work began and almost four times over budget. Work was originally intended to take two years and cost around £22m, but the cost is now believed to be nearer £86m. (You can read more about the historic repair saga here.)
CAPALDI SURPRISE: Lewis Capaldi made his first appearance on stage since appearing at Glastonbury two years in a charity concert at the Assembly Rooms. The 28-year-old star performed six tracks in support of the Campaign Against Living Miserably, which works to prevent suicide. Capaldi, from Bathgate, West Lothian, has spoken openly about his struggles with anxiety, and announced a break from performing to focus on his mental health after appearing at Glastonbury in 2023.
ROAD TOLLS TALK: City transport convener Stephen Jenkinson has told a meeting organised by the Spokes cycle campaign group that a congestion charge “should be considered” for the Capital. The prospect seems a long way off, however, with Labour councillor Jenkinson saying the local authority would need the support of the Scottish Government, with additional legislation required to support its enforcement. Proposals for a £2 a day congestion charge for driving into Edinburgh were rejected by 74 per cent of voters in a local referendum in 2005.
TWO DEATHS ON A70: Two people have died in separate crashes on the A70 on the same day. A 65-year-old cyclist was killed after being hit by the driver of a van near Harburn, West Calder, on Friday morning. Around three hours later, a 46-year-old driver was killed a few miles away, at the junction with the B7031 to Kirknewton, in a crash involving his blue Skoda Octavia car, a black Mercedes Vito taxi and a bicycle. The taxi driver was taken to hospital and later discharged and the cyclist did not require medical treatment.
ON TRACK: World 1500m champion Josh Kerr has picked up his first title in Michael Johnson’s Grand Slam Track series and with it $100,000 (£75,000) in prize money. The 27-year-old Edinburgh runner won the men’s 1500m and came fifth in the 800m to come top of the competition scoreboard in Miami.
HOTEL PLAN: The Capital House offices on Festival Square will be converted into a 195-bed Premier Inn hotel under plans to extend and refurbish the building. The development nextdoor to the Filmhouse cinema is expected to create 35 jobs and generate more than £8 million a year.
MISSED MOVIES: The relaunch of the Filmhouse, scheduled for June, is to include up to a week of screenings of major films from the past two-and-a-half years, including Brady Corbet's The Brutalist, while the venue was closed. (You can read Will Quinn’s highly popular long read on the rescue of the Filmhouse here.)
SCHUH-IN: Footwear retailer Schuh has returned to its roots by opening a flagship store at the Edinburgh St James Quarter. The chain’s first shop opened in North Bridge Arcade in 1981. Neil Partington, chief retail officer at Schuh, said: “Scotland is at the heart of Schuh – the birthplace of the business. Edinburgh, in particular, has always been a pivotal location for us, as the city where it all began.”
RETAIL PARK GROWS: Straiton Retail Park has been given planning permission to expand onto derelict land behind the Asda store. Lansdowne Investment’s plans approved by Midlothian Council feature shops, business and leisure space, alongside nearly 300 extra car parking spaces.
HIBS HERO: Tributes were paid to Hibs hero Jim Herriot at Easter Road on Saturday following his death at the age of 85. Herriot was not only one of Hibs greatest ever goalkeepers, winning the League Cup with the club in 1973 and the Drybrough Cup twice, but also gave his name to the character in the All Creatures Great and Small books.
‘TOXIC’ MATERNITY WARD APOLOGY: NHS Lothian has apologised to staff after an investigation found there was a “toxic” workplace culture within its maternity care services. The health board commissioned an independent review after a whistleblowing report revealed staff shortages and workplace relationships had compromised patient safety. It has said it "fully recognises and apologises" for the poor experiences of some staff and said it had made several improvements in recent months.
Picture of the week
THE BUSINESS
Tilbury Douglas to build tattoo arena for next five years
The Royal Edinburgh Military Tattoo has awarded a new give-year deal to Tilbury Douglas to deliver the Edinburgh Castle Esplanade arena for the world-famous event.
More than 200,000 people attend the show every summer, and has a global TV audience of more than 100million. The partnership has delivered the arena, which is also used for music concerts, for the past ten years.
The project involves coordination with local authorities, emergency services and heritage bodies. Each annual build involves over 760 tonnes of structural steel; more than 35 miles of electrical and technical cabling; and in excess of 1,600 crane lifts.
Jason Barrett, chief executive of The Royal Edinburgh Military Tattoo, commented, “Thanks to Tilbury Douglas, our world-renowned Edinburgh Castle Arena will be all set to welcome thousands of spectators from across the globe once again this summer. There’s nowhere more iconic for an outdoor show, and we’re proud to deliver our successful events, in partnership with all our important stakeholders, year on year right here in Edinburgh.”
BANKING ON CHANGE: Gogarburn-based Royal Bank of Scotland is thought to be weeks away from returning entirely to private ownership. NatWest, which trades as Royal Bank of Scotland north of the border, has reported that the taxpayers ownership stake is now below 2%, with those final shares expected to return to private hands by mid-summer. The bank, then operating throughout the UK as part of the Royal Bank of Scotland group, had to be rescued by the UK Government during the financial crash of 2008
OFFICE SALE: An HQ-style office building in Edinburgh – built to the highest sustainable standards – is on the market at more than £11 million. Lismore Real Estate Advisors say 4-5 Lochside Avenue at Edinburgh Park is a “prime HQ opportunity in Edinburgh’s premier business park”. It is more than 42,500 square feet.
CAPITAL APPOINTMENT: Murray Capital, the private investment office of the Murray family, has appointed Colin Mitchell as its group finance director. He succeeds Euan Campbell, who has moved on after more than 10 years in the role. He returns to Murray Capital, after a previous stint working with the family, from his role as group finance director at residential and construction firm Robertson Group, where he served for over six years.
THAT’S ENTERTAINMENT
HARBOUR AND PORTY FESTIVALS: Musselburgh’s annual Fisherrow Harbour Festival takes place on Saturday, with a pirate and country and western theme, as well as the popular raft race and the chance to learn more about sailing. Just up the coast, Saturday and Sunday sees the inaugural Portobello Festival, with food traders, gelato, gin bar, coffee, magician, disco, yoga, circus, market, music, dj, creative workshops and more, at the town hall and other venues.
BIRTHDAY BASH: The Hidden Door Festival will be celebrating a decade of contributing to the city’s cultural life with a 10th birthday party on Friday and Saturday. The St James Quarters’ B3 Car Park will be transformed into an underground party, performance and arts space for two nights from 6pm to 1am.
FUN AHOY! The Lost Shore Surf Resort in Ratho is teaming up with the RNLI to host a fun day on Sunday to raise funds for the RNLI’s Mayday campaign and promote water safety awareness.
QUICK BITES
BARNTON OPENING: The latest venture by hospitality group Buzzworks, the fourth Herringbone in Edinburgh and the Lothians, will officially open at Whitehouse Road, Barnton, on Friday at 9am. The others are at Goldenacre, Abbeyhill and North Berwick.
DRINK WITH A VIEW: The Hawes Inn at South Queensferry, with stunning views of the Forth Bridges and the Forth Estuary, has been ranked one of the best spots in the UK to enjoy an outdoors drink in the beer garden by hospitality website Eat Drink Meet.