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Edinburgh is set to introduce a tourist tax on accommodation in a bid to raise up to £50 million a year towards improving the city.
If agreed, from 24 July 2026, guests in the Scottish capital will have to pay a five per cent visitor levy to stay overnight.
Edinburgh will be the first city in Scotland to charge a mandatory city-wide levy – similar to schemes in European cities such as Amsterdam.
Read more: The best hotels in Edinburgh
The city’s council approved the ‘Transient Visitor Levy’ proposal in August to charge visitors at hotels, B&Bs, campsites and holiday rentals let out through Airbnb five per cent of the cost per room per night.
The fee will be capped at five consecutive nights per person following a 12-week public consultation with over 4,500 responses.
According to Edinburgh Council, temporary campsites and parks will be liable for the levy, and refunds will be issued within five working days for all exempt visitors to reflect public feedback.
The council is set to agree to the visitor levy scheme for Edinburgh later this month, with charges applied to accommodation bookings made on and after 1 May 2025 and after 24 July 2026.
Summer is a busy time for tourism in Scotland as comedians flock to the capital for the Edinburgh Fringe festival.
Updated proposals will be considered by the Policy and Sustainability Committee on 17 January and by all councillors at a meeting on 24 January.
Jane Meagher, Edinburgh council leader, estimated an “income of up to £50 million” once the tourist tax is established.
Ms Meagher said on Wednesday (8 January): “This is the moment we have been working towards – a once in a lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.”
“We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents. I’m looking forward to working with Councillors to agree the scheme this month, which will allow further work to be carried out on the details of Edinburgh’s new levy,” she added.
At least 16 other Scottish authorities, including the Highlands, are also considering introducing their own visitor taxes that could come into force in late 2026.
The move follows a proposed bill by the Welsh Government to introduce a “small” visitor levy that could see visitors to the country paying up to £1.25 per night by 2027.
Finance secretary Mark Drakeford introduced the bill on 25 November for consideration by the Senedd.
Councils would have to opt into the scheme that would affect guests staying in hotels, bed and breakfasts and self-catered accommodation once the Senedd makes it legal.
For more travel news and advice, listen to Simon Calder’s podcast
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