Edinburgh's visitor levy proceeds to go towards newly created fund supporting tourism businesses

A new fund has been launched that will use proceeds from Edinburgh’s tourist tax to support projects across the city.

The Edinburgh Visitor Economy Improvement Fund (EVEIF) will be used to support businesses within the city’s tourism sector.

The visitor levy came into effect on July 24 this year, meaning those staying in hotels, B&Bs, short-term lets and other forms of accommodation will have to pay an additional 5% surcharge.

Edinburgh is the first city in Scotland to introduce the levy, with Glasgow, Aberdeen and Stirling also considering implementing a tourist tax.

The EVEIF is designed to help address challenging trading conditions and rising operational costs affecting hundreds of tourism businesses.

The first phase focuses on collaborative projects involving three or more businesses that already work together as a collective, such as high street alliances, local associations, or emerging business groups.

They could receive funding of between £1,000 to £15,000.

In time, the fund could also be used for initiatives such as joint marketing activity, wayfinding information, themed trails, and neighbourhood maps.

Council leader Jane Meagher said: “The Edinburgh Visitor Levy allows us to invest in the services and spaces that matter to residents, businesses and visitors, and one of the most important outcomes of the scheme is increasing our support for the organisations that help make the city the special place it is today.

“Introducing the EVEIF is a key part of this and means we can support businesses of all sizes on a range of practical improvements, while helping them adopt greener practices, provide Fair Work and greater job security for their employees and improve Edinburgh’s visitor experience even further.

“This is a great opportunity for visitor economy businesses to work together on practical improvements. We can support these organisations to invest in their businesses while protecting and improving their local neighbourhoods, and help to make our city a stronger and more welcoming destination for everyone in the process.”

Earlier this year, Edinburgh City Council agreed to earmark £90m raised from the visitor levy to support projects over the next three years.

Some projects have already benefitted from funding, such as Edinburgh’s Festival Carnival and Mardi Gras events, which were awarded £132,000.

The funding was used to employ ten festival ambassadors to help visitors find their way around the capital this summer.