A FRESH row has broken out over Edinburgh’s controversial tourist tax proposal after the council leader claimed opinion was divided between supportive local hoteliers and critical international operators.

Adam McVey, head of the council’s SNP-led administration, said opinion was “split”, with local hoteliers “fairly supportive” and international firms opposed.

However, the Federation of Small Businesses (FSB) said the local hoteliers it represents remain critical of the proposed transient visitor levy (TVL)

It is the latest public rebuke for the council leader, who was reined in by Culture and Tourism Secretary Fiona Hyslop last month when he claimed on Twitter the tax “will be ready for implementation” next year.

Kevin Pringle, the SNP’s former communications director, added fuel to the fire yesterday when he criticised Ms Hyslop for her “frosty” response, saying her opposition threatens to undermine local democracy.

The row has exposed growing divisions within the SNP over the tourist tax, which has the support of Cosla, the umbrella body representing all 32 local authorities.

Maxine Smith, leader of the SNP group on Highland Council, has also called for a tourist tax to improve facilities in the region, where top tourist destinations are blighted by poor roads, parking and local services.

Mr McVey told Radio Scotland’s Good Morning Scotland programme yesterday: “What I’m finding in speaking to the industry and engaging is that those based in Edinburgh and understand the Edinburgh market, understand what is best for the city, and understand the city’s needs, are actually fairly supportive of our proposals and are now looking to develop the details.

“Those international hotels, we’ll probably never win over.”

Mr McVey later admitted just one in four FSB members back the plan, and would not say which hotel operators or sector representatives had signalled their support.

He added: “While hoteliers have concerns around the scale and process of applying any charge, even those who oppose the introduction of a TVL are telling us that if the charge is small (which it will be) and if the application doesn’t create a significant bureaucratic burden (which it won’t) then they would be relaxed about moving forward.”

Colin Borland, of the FSB head of devolved nations, said: “I’m not sure what he’s basing that on because our members have been very clear in the areas in Edinburgh, and also in the Highlands and other areas where the idea has been mooted, that they are opposed to a tourist tax.

“We have asked them a few times to see if opinion has shifted and they remain opposed to it.

“It’s not just the accommodation providers that we represent who are against it, it is pub owners, taxi drivers, restaurateurs, the whole range.”

Writing in the Sunday Times, Mr Pringle said a tourist tax “would raise millions to improve Edinburgh’s infrastructure and public spaces” and called for similar schemes in Skye, Orkney and Inverclyde.

Criticising Ms Hyslop’s “frosty” reception, he said: “I hope that their disagreement is one of timescale and practicalities rather than principle because there is also an issue of local democracy at stake.

“Edinburgh is run by an SNP/ Labour coalition, and both parties included a tourism tax in their local manifestos for last year’s council elections. The policy has the support of all parties in the city other than the Conservatives.”

He cited John Donnelly, chief executive of Marketing Edinburgh, who said: “We must seriously contemplate a levy as a potential solution and explore the positive impact its introduction could have.”

Mr Pringle now works for Charlotte Street Partners alongside former SNP MSP Andrew Wilson, whose recent Growth Commission report has incensed some left-wing Nationalists for its sober assessment of Scotland’s finances.

Mr Wilson advocated the use of taxation “as a tool for economic development”.

“There is little sense in competing as a low cost or low tax location (but) the taxation system can be used to support the economic strategy,” he said.