Edinburgh has become the first city in Scotland to charge overnight visitors a 5% tourist tax, with the levy coming into effect on Friday. The charge applies to hotels, bed and breakfasts, self-catering accommodation, hostels, and holiday lets such as AirBnBs, and is capped at five nights – meaning a £100-per-night room for a five-night stay would cost £525 instead of £500, while a 10-night booking would total £1,025.
The visitor levy is expected to raise about £50m annually, which the City of Edinburgh Council plans to spend on new housing, cultural initiatives and a wider police presence. However, opponents argue the additional cost could put some potential visitors off.
“Edinburgh introduces 5% tourist tax on overnight stays, aiming to raise £50m annually.”
The tax brings Edinburgh in line with other popular European destinations such as Amsterdam, Paris and Rome. It follows the Scottish government passing the Visitor Levy (Scotland) Bill in May 2024, which gave councils the power to impose a tourist tax. The city council voted in favour in January last year.
Exemptions are available for those presenting as homeless and housed in emergency accommodation, people at risk of domestic abuse or other violence, and those temporarily rehoused due to poor living conditions. Asylum seekers and refugees are also exempt, as are some disability benefit recipients. However, all those covered will pay the levy initially and can claim it back later.
The charge is being introduced in time for Edinburgh's summer festival season in August, when the Edinburgh International Festival, Festival Fringe, Art Festival, Book Festival, Film Festival and Royal Military Tattoo take place. Day-trippers from elsewhere in Scotland or the wider UK are not affected. The council has also backed exploring a separate tax on cruise ship arrivals.
The rate does not vary by time of year, and is collected by accommodation providers before being passed to the city council.