Written by Edinburgh Set to Introduce Scotland’s First Tourist Tax
Edinburgh is poised to make history as the first city in Scotland to introduce a tourist tax, officially known as the “visitor levy.” If approved, the tax will generate millions annually to support the city’s bustling tourism sector and alleviate the pressure on local infrastructure caused by its ever-growing popularity.
The Proposal
The City of Edinburgh Council will vote on January 24, 2025, to finalize plans for the levy. Designed as a 5% charge on the cost of overnight stays, the tax will apply to all types of accommodations, including hotels, B&Bs, Airbnbs, and campsites. Stays will be taxed for up to five consecutive nights.
If passed, the tax will take effect for bookings made after May 1, 2025, with the levy being applied to stays commencing from July 24, 2026.
Projected Impact
City officials estimate the visitor levy could generate up to £50 million annually. These funds will be used to:
- Improve tourism infrastructure.
- Support cultural events and festivals.
- Enhance public services such as waste collection and public transport, which are heavily utilized by tourists.
“This levy is a step toward sustainable tourism,” said a council spokesperson. “We want to ensure that both residents and visitors can enjoy Edinburgh at its best.”
Public Reaction
The proposal has sparked debate among residents and industry professionals. A public consultation concluded in December 2024, garnering over 4,500 responses. While many support the levy as a means of addressing the strain on city resources, others—particularly small accommodation providers—worry about the impact on their businesses.
One resident remarked, “It’s only fair visitors contribute to the city they enjoy. Our streets, parks, and public spaces need upkeep.”
A Growing Trend
Edinburgh joins a growing list of global cities, such as Amsterdam and Venice, that have implemented tourist taxes to balance the benefits and challenges of high visitor numbers. As Scotland’s most visited city, Edinburgh welcomes millions of tourists each year, particularly during major events like the Edinburgh Festival Fringe and Hogmanay celebrations.
Tourism advocates believe the levy is a necessary step to ensure the city remains an attractive destination while protecting its heritage.
Next Steps
The council’s Policy and Sustainability Committee will review the public consultation results on January 17, 2025, ahead of the council vote. If approved, Edinburgh’s tourist tax will mark a significant shift in how the city manages its tourism economy—one that could set a precedent for other parts of Scotland and the UK.
Stay tuned for updates as Edinburgh’s council prepares to make its landmark decision.