Edinburgh has become the first city in Scotland to introduce a tourist tax, with a 5% charge on overnight stays coming into effect on Friday.
The visitor levy applies to hotels, bed and breakfasts, self-catering accommodation, holiday lets such as Airbnbs, aparthotels, guest houses and hostels. It is collected by accommodation providers and passed to the city council.
“Edinburgh becomes first Scottish city to charge tourists 5% on overnight stays from Friday.”
The charge is capped at five nights, so a £100-per-night room booked for five nights would add £25 to the total, bringing it to £525. For 10 nights, the extra cost would be £25 as well, since only the first five nights incur the levy. The rate does not vary by season.
The City of Edinburgh Council voted in favour of introducing the charge in January last year, after the Scottish government passed the Visitor Levy (Scotland) Bill in May 2024, granting councils the power to impose such a tax. The move brings Edinburgh in line with popular European destinations including Amsterdam, Paris and Rome.
The levy is expected to raise about £50m annually, which the council hopes to use for new housing, cultural initiatives and a wider police presence. However, opponents claim the additional cost could put some potential visitors off.
Exemptions apply for certain groups, including those presenting as homeless and housed in emergency accommodation, those 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 recipients of disability benefits. Eligible individuals must pay the levy upfront but can claim it back later.
The tax applies only to overnight stays, not day-trippers, and is timed to coincide with Edinburgh's summer festival season in August, which includes the International Festival, Festival Fringe, Art Festival, Book Festival, Film Festival and Royal Military Tattoo.
The council has also backed exploring a separate tax on cruise ship passengers, in response to a Scottish government consultation.
The introduction of the levy marks a significant shift for Scotland's tourism industry, and its long-term impact on visitor numbers remains to be seen.