From Friday, anyone booking a hotel room, Airbnb or self-catering apartment in Edinburgh will pay an extra 5% on top of their bill — the first tourist tax in any Scottish city.
The charge, approved by the City of Edinburgh Council in January last year, is capped at five consecutive nights. A £100-a-night room for five nights, normally £500, will cost £525. The same room for 10 nights, totalling £1,000, becomes £1,025 — the fee does not increase beyond the first five nights.
“Edinburgh becomes first Scottish city to introduce a 5% tourist tax on overnight stays, raising £50m a year for housing, culture and policing.”
Accommodation providers will collect the levy and pass it to the council, which hopes to raise about £50m annually. The money is earmarked for new housing, cultural initiatives and a wider police presence, according to the council.
The Scottish government passed the Visitor Levy (Scotland) Bill in May 2024, giving councils the power to impose such a tax. Edinburgh joins popular European destinations including Amsterdam, Paris and Rome in charging overnight visitors.
Critics argue the extra cost could deter some tourists. But the council has pressed ahead, timing the introduction to coincide with the city's traditional summer festival season in August. The Edinburgh International Festival, Festival Fringe, Art Festival, Book Festival, Film Festival and Royal Military Tattoo all take place that month.
Day-trippers — those arriving from elsewhere in Scotland or the wider UK without staying overnight — are not required to pay. The council has also backed exploring a separate tax on cruise ship passengers, in response to a Scottish government consultation.
Exemptions apply to people 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, refugees and some recipients of disability benefits are also exempt. They must pay the levy upfront but can claim it back later.
The tax covers hotels, self-catering apartments, holiday lets such as Airbnbs, aparthotels, bed and breakfasts, guest houses and hostels. The rate remains the same year-round, regardless of season.
Whether the levy will hit Edinburgh's appeal as a tourist magnet — or fund the improvements its backers promise — remains to be seen.