Two meetings are set to take place where city councillors will decide whether to support the levy, which will be set at 5% of accommodation costs.
If agreed, the tax will start being applied to bookings made on and after 1 May 2025 to stay in overnight accommodation in the city on and after 24 July 2026.
The council predicted the levy is expected to raise up to £50m a year. The funds will be used to help manage tourism sustainably and boost projects that benefit the experience of visitors and residents, council leader Jane Meagher said.
Strong feedback
UKH Scotland reiterated calls for the levy costs to be “kept to a reasonable minimum” and the the inclusion of a cost recovery mechanism for firms was essential.
Executive director Leon Thompson said: “It’s crucial the visitor levy was not raised above the proposed rate of 5% and it’s positive the council has listened to strong feedback from hospitality businesses on this point.
“Retaining a mechanism for business cost recovery, as called for by UKH Scotland, was essential and I’m pleased this remains within the revised scheme.
“The proposal to apply the levy to eligible bookings from May this year is a quick turnaround for businesses, who will have to implement new systems and ways of working in just over three months.”
Clear guidance
Thompson added: “To make this achievable, the council will have to work at pace to urgently provide clear and detailed guidance for businesses tasked with collecting levy funds.
“Ahead of the council vote late this month, I would urge councillors to understand the rate cannot be punitive and to be mindful of the impact any additional costs will have on businesses and visitors.
“UKH Scotland will continue to work with the council on behalf of the sector to ensure this scheme is introduced as simply as possible for businesses and visitors.”
