CLAIMS that Edinburgh's planned tourist tax is "dead in the water" were today branded premature.

Members of the Edinburgh Principal Hotels Association, which represents the Capital's biggest hotels, voted against the proposed two per cent tourist visitor levy (TVL).

Association chairman Peter Dornom said: "As far as we're concerned this scheme is now dead in the water. I can't see how it can go on from here when it has no real support in the industry."

But Tom Buchanan, the city council's economic development leader, said the detailed proposal was still being developed.

He said: "It is precipitate to try to kill it off at this stage.

"Just to say it's stone dead is premature. There are a range of people involved in this. Other people need to have their say as well."

Under the scheme, visitors would have an additional charge added to their bill.

Money raised by the levy would help pay for festivals, events and marketing initiatives.

Councillor Buchanan said the people best placed to decide how the cash was spent were the industry themselves, but he acknowledged supporters of the TVL had to persuade sceptics of the merits of the levy.