Councillors voted to push back the start of the visitor levy transition period to 1 October, later than the original proposal of 1 May.
The delay means accommodation firms will have longer to prepare to collect levy funds for bookings made for 24 July 2026 onwards, which is when the levy comes into force.
Moreover, it applies only for pre-bookings made on or after 1 October 2025, it will apply for the first five consecutive nights' stay.
Fundamental concern
Furthermore, in Edinburgh 2% of levy funds collected will be reimbursed to accommodation providers, which is intended to cover some o the direct costs, which will occur as a result of collecting the levy, according to the council.
UKHospitality Scotland executive director Leon Thompson said: “Not only has Edinburgh’s visitor levy been confirmed but so too has the hit to the city’s competitiveness as a leading tourist destination.
“Our fundamental concern has always been this levy will only serve to make visitors’ trips to Edinburgh more expensive, ultimately reducing their spending in the wider visitor economy and deterring future visits.
“It’s now the job of the council to use these funds wisely to improve the capital’s attractiveness as a visitor destination and mitigate the impact of the levy on businesses.”
Working together
Thompson added: “I am pleased throughout the process, the council has listened closely to and acted on UKHospitality Scotland’s concerns and those of our industry partners, through the introduction of business support measures and the change to the scheme to delay when businesses will have to collect levy funds.
“That was critical to help businesses and booking platforms, which needed more time to put in place the systems required to collect the levy.
“As we now head towards July next year when the levy comes into force, I look forward to working closely with the council as part of the partnership approach it has taken so far, to help make the scheme work as best as possible for hospitality and tourism.”
Earlier this month (January), the trade body reiterated calls for the levy costs to be “kept to a reasonable minimum” and the inclusion of a cost recovery mechanisms for firms was essential.