EDINBURGH’S rapidly growing Airbnb accommodation rental sector would have to pay the tourist tax which the city council is considering introducing.

A report on the Transient Visitor Levy (TVL), otherwise known as the tourist tax will go before Thursday’s council meeting. It states that Airbnb-type listings in the city rose by more than 50 per cent in one year and recommends that the tax be levied on Airbnb users.

The report states: “It is recommended that the scope of a transient visitor levy should be equitable across the range of accommodation options and include hotels, service apartments and B&B/guesthouses and Airbnb type properties.”

The report adds: “Travellers staying in Airbnb accommodation in Paris and Rome are required to pay a ‘tourist tax’ per day, per adult. This brings the owner-direct booking service in line with hotels in the city and other providers.”

The news that Airbnb hosts will probably have to register for the tourist tax comes at a time when HMRC is looking at ways of bringing hosts and the company itself fully into the tax system.

The council suggests either Airbnb collects the tax on its behalf or owners do it.

The report estimates that a charge of £1 per person per night could generate more than £11 million each year but, depending on the mechanism used, the additional income could be as high as £29m. If Airbnb hosts comply with the TVL rules, it could bring substantial income for the council. The report notes: “The growth of new accommodation models such as Airbnb, rising from around 6300 to 9700 listings from July 2016 to September 2017, represents further evidence of a growing and successful industry.”

The hospitality industry in Edinburgh has long opposed a tourist tax, which is likely to need legislation in the Scottish Parliament. The Convention of Scottish Local Authorities is said to be preparing a nationwide case for such a law.

Edinburgh City Council stated: “Next steps in building the case include a round-table discussion with industry stakeholders to discuss the details of what an Edinburgh scheme could reasonably look like and options for implementing it, followed by further research into the views of residents and visitors.”