Responding to the council’s consultation, the FSB advised against immediate action, arguing that a premature tax could burden the accommodation sector, which is already grappling with new short-term let licensing rules and an increasingly price-conscious market.

The FSB recommends delaying any decision until implementation issues in neighbouring Edinburgh – specifically regarding major booking platforms – are resolved.

With the Scottish Government currently refining rules to potentially allow flat fees rather than percentage charges, the FSB suggests waiting for regulatory clarity.

Additionally, the organisation is calling for a detailed, local economic impact assessment to explore options such as a peak-season-only levy.

Garry Clark, FSB’s East Scotland development manager, acknowledged that while the levy could eventually generate vital funds for tourism, it poses a risk if mishandled.

“Implemented prematurely, the additional tax and bureaucracy… could encourage visitors to bypass East Lothian and even lead some small accommodation providers to close,” Mr Clark warned. He urged the council to follow the lead of other local authorities that have paused activity until the legislative framework is fully tested.