Edinburgh has become the first city in Scotland to charge visitors for the privilege of staying overnight, as a 5% tourist levy came into effect on Friday. The charge, applied to hotels, bed and breakfasts, self-catering accommodation and holiday lets such as Airbnbs, is expected to raise about £50m annually for the capital.
The City of Edinburgh Council voted in favour of introducing the levy 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.
“Edinburgh becomes first Scottish city to charge 5% tourist tax on overnight stays, raising £50m annually.”
The additional 5% is collected by accommodation providers and passed to the city council. For a £100-per-night room booked for five nights, the total cost would rise from £500 to £525. A 10-night booking for the same room would cost £1,025 instead of £1,000, because the charge is capped at five nights. The rate does not vary by season.
Proceeds from the levy are intended to fund improvements to housing, cultural initiatives and a wider police presence. However, opponents argue the extra cost could deter some potential visitors.
Exemptions apply for certain groups, including 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 and refugees are also exempt, as are some recipients of disability benefits. All exempt individuals must pay the levy upfront but can claim it back later.
The levy applies only to those who stay overnight, not day-trippers. Its introduction coincides with Edinburgh's traditional summer festival season in August, which includes the Edinburgh International Festival, Festival Fringe, Art Festival, Book Festival, Film Festival and the Royal Military Tattoo. The council has also backed exploring a separate tax on cruise ship arrivals, in response to a Scottish government consultation.
Critics warn that the additional cost could make Edinburgh a less attractive destination, but supporters hope the revenue will enhance the city's appeal through better infrastructure and services. The long-term impact on tourism numbers remains to be seen.