Edinburgh has become the first city in Scotland to charge visitors for the privilege of staying overnight — a 5% levy on top of hotel, B&B and self-catering bookings that came into effect on Friday and immediately divided opinion.
The tax, which the City of Edinburgh Council voted to introduce in January last year, is capped at five consecutive nights. A room costing £100 per night for a week would add just £25 to the total, but opponents warn that even that modest sum could deter some tourists.
“Edinburgh becomes first Scottish city to charge overnight visitors a 5% levy, capped at five nights, to raise £50m annually.”
Proponents of the levy say the estimated £50m raised annually will fund new housing, cultural initiatives and a wider police presence. The Scottish government passed the enabling legislation, the Visitor Levy (Scotland) Bill, in May 2024, granting councils the power to impose such a charge.
Edinburgh now joins popular European destinations including Amsterdam, Paris and Rome in taxing overnight visitors. The fee is collected by accommodation providers and passed to the city council. The rate does not vary by season — meaning August festival-goers pay the same as winter visitors.
Certain groups are exempt, including homeless people housed in emergency accommodation, those at risk of domestic abuse, asylum seekers and refugees, and some recipients of disability benefits. They must pay upfront but can claim the money back later.
Day-trippers escape the charge entirely, a fact likely to be tested during Edinburgh's summer festival season in August, when the Edinburgh International Festival, Festival Fringe, Art Festival, Book Festival, Film Festival and Royal Military Tattoo all take place. The council has also backed exploring a separate tax on cruise ship arrivals.
The levy applies to hotels, self-catering apartments, holiday lets such as AirBnBs, aparthotels, bed and breakfasts, guest houses and hostels. With the first payments now being collected, the question is whether the extra cost will chill visitor numbers — or simply become an accepted part of a trip to Scotland's capital.