Edinburgh approves plan for tourist tax: 6 need-to-know business stories

Hello and welcome to our daily digest of business, financial and economic news from around Scotland.
1. Edinburgh councillors have approved a tourist tax to raise up to £50 million, becoming the first Scottish city to do so.
The tax applies to hotels, B&Bs, self-catering accommodation, and Airbnb-style properties. But critics argue it could deter visitors and harm Edinburgh’s tourist appeal.
A 12-week consultation will start in the autumn to ask residents whether the 5 per cent charge should be higher or lower. City officials have said the proceeds will be used to pay for improvements across the capital, but critics argue the charge will be bad for businesses.
Cammy Day, the leader of the council, believes the tax will benefit the city without deterring tourists, comparing the cost to “a few pounds’ worth of a cup of coffee”.
The Scottish Greens proposed raising the levy, which is planned to be introduced in time for the 2026 festival season, to 8 per cent. However, Leon Thompson, executive director of UKHospitality Scotland, said: “The visitor levy will increase costs for both visitors and businesses in Edinburgh, and that cost must be kept to a reasonable minimum. It’s concerning that an even higher levy has been proposed than the 5 per cent in the draft scheme. I would urge extreme caution against setting the levy at a level which could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination.”
2. Price deflation and weaker customer demand have trimmed profit at the packaging specialist Macfarlane Group.
Interim revenue dropped by 8 per cent to £129.6 million with pre-tax profit down by 3 per cent to £9.7 million for the first six months of this year.
The Glasgow-based group had previously warned its sales were likely to be down but still increased its interim dividend by 2 per cent to 0.96p per share.
Peter Atkinson, the chief executive, indicated pricing and demand were both expected to improve in the second half of the year.
The group is traditionally busy in the run-up to Christmas, with various e-commerce customers including Currys, Halfords and Lakeland.
Atkinson confirmed Macfarlane had a very active pipeline of acquisition targets but was unlikely to complete any more deals this year.
3. Scotch whisky has been granted legally protected status in Brazil.
That should help to stop counterfeit products being labelled as Scotch and lift sales of the real spirit into the South American nation.
About £90 million of Scotch whisky was sold into Brazil during 2023.
Jonathan Reynolds, the UK trade secretary, visited Glengoyne Distillery, to the north of Glasgow, to mark the decision. He said the granting of the Geographical Indication status should give “Scottish distillers the confidence they need to export to one of the world’s largest economies without having to compete with fake knock-offs and pale imitations”.
4. Installing more 4G mobile phone masts in rural and island communities has led to economic and social improvements.
Fresh analysis of the £28.8 million Scottish government programme found 2,200 premises across 55 areas have a faster mobile internet connection.
Firms said that has helped them grow online sales, while communities said there has been improved connectivity during times when broadband services have been disrupted.
Employee productivity is also said to have improved, with greater access to flexible working and remote learning opportunities.
Tom Arthur, the employment and investment minister, said: “This is about creating opportunities for businesses, improving daily life and ensuring no one, even the hardest to reach, is left behind in the digital era.”
5. Diageo has appointed an internal candidate to oversee its Scotch whisky tourism sites.
Dafydd Pugh Williams has been with the drinks giant for 13 years since moving from AB InBev.
He is now taking on the position as managing director of brand homes across Scotland. That includes the Johnnie Walker attraction in Edinburgh as well as distillery visitor experiences such as Talisker on Skye, Lagavulin on Islay and The Singleton at Glen Ord.
Diageo said it welcomed more than 1.1 million people through its 12 Scottish brand homes in 2023.
6. Octopus Energy is making its electrical vehicle charging payment system available across Scotland’s public network.
The Octopus Electroverse app will be able to be used across almost 2,900 ChargePlace Scotland points.
Matt Davies, director of Octopus Electroverse, said: “We’re thrilled to bring ChargePlace Scotland on board, supercharging our mission to simplify public electric car charging.
“Drivers can now seamlessly access thousands of Scottish chargers at just one tap.”