The capital city could soon become Scotland's first city to introduce a tourist tax, after local councillors approved key details of a draft scheme.

City of Edinburgh Council leader Cammy Day observed that the proposed tax is an "innovative way of sustaining the sector and the city".

Day added: "It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer.

"By better supporting these services we can secure Edinburgh's future as a top global destination."

It's been estimated that the proposed scheme could generate tens of millions of pounds a year for the city.

A flat rate of five percent per night on accommodation in Edinburgh has been proposed. However, residents, visitors and businesses will eventually be consulted on the tax rate.

UKHospitality Scotland has insisted that the rate must be kept at a sensible level.

Leon Thompson, an executive director of UKHospitality Scotland, said: "It's concerning that an even higher levy has been proposed than the five percent 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.

"Business costs to set up and administer the levy will be significant and it's positive that the council has so far backed a mechanism for businesses to recover their costs."

The proposed tax will see Edinburgh follow in the footsteps of cities such as Venice, Barcelona, Amsterdam and New York.