Edinburgh has become the first Scottish city to introduce a tourist tax, slapping a 5% charge on overnight stays in hotels, bed and breakfasts, self-catering properties, and even houseboats as of this morning. The move follows the Scottish Government's Visitor Levy (Scotland) Bill, passed in May 2024, which gave local authorities the power to impose such charges.
The levy is a flat 5% of accommodation costs but is capped at five nights. This means longer-term visitors will only pay the £25 charge on their initial five-night stay. For instance, a £100-per-night room for five nights would incur an extra £25, bringing the total to £525, while booking the same room for ten nights would still only incur the £25 levy, totalling £1,025.
City of Edinburgh Council expects the tourist tax to rake in between £45 million and £50 million annually by 2028/29. These funds will be ploughed into local investments such as new housing developments, cultural initiatives, and increased policing within the capital. Edinburgh is joining a growing list of major European cities like Amsterdam, Paris, and Rome, which have implemented similar charges to manage tourism and fund local services.
Vulnerable individuals, including those presenting as homeless or in emergency accommodation, domestic abuse victims, asylum seekers, refugees, and some disability benefit recipients will initially pay the levy but can claim it back later. However, day-trippers remain exempt from the charge, which only applies to overnight stays.