Local businesses have branded proposals for Edinburgh's tourism tax as "unwanted and potentially damaging" in a survey which revealed a majority were opposed to the plans.

Results showed that 76% were against the introduction of a levy on tourism, and 73% said they thought it would have a negative impact on the local economy.

The Federation of Small Businesses (FSB) surveyed 124 businesses in the city.

The city council is currently drawing up a business case for a proposed tax with the aim of persuading the Scottish Government to hand over the necessary power to introduce it.

FSB area leader for the east of Scotland Janet Torley said that tourists must be valued and not "priced out" of the city.

She continued: "This is a wake-up call for the City of Edinburgh Council, signalling that its plans to introduce a tourism tax in the city are unwanted and potentially damaging.

"Edinburgh is at the very heart of Scotland's tourist industry - it is our most visited city, it has our busiest airport, and it is home to some of our most iconic landmarks.

"If we tax tourists out of Edinburgh, then we risk taxing them out of Scotland, damaging the prospects of small local businesses throughout Scotland and threatening jobs."

The plans have been criticised by other industry bodies such as the Scottish Tourism Alliance (STA) and the Association of Scotland's Self-Caterers (ASSC).

Marc Crothall, STA chief executive, said: "The STA recognises the need across most destinations for an increased level of long- term sustainable investment, however applying a further cost to visitors is, in our opinion, not a sensible approach to take.

"Any such visitor tax/levy being applied is counterproductive and could have a potentially devastating long-term impact on Scotland's tourism industry and local economies."

Council leader Adam McVey, said: "We have long held belief that a Transient Visitor Levy is in the best interests of our residents, our tourism industry and ultimately also those who visit our beautiful city.

"The substantial research we have done demonstrates that not only is a TVL unlikely to adversely affect Edinburgh's accommodation industry, but that handled correctly, it can help to secure the ongoing sustainability and health of tourism in the city.

"I understand that there are those who remain to be convinced that this would be a positive move and would be of benefit to us all. I can assure them that this is only the beginning of a considered, thoughtful and balanced debate with industry leaders, the people of Edinburgh and those who visit us."