Edinburgh becomes first city in Scotland to introduce tourist tax

Edinburgh has become the first council in Scotland to approve a visitor levy.

Councillors voted in favour of introducing the measure, which will see a charge introduced on those staying in overnight accommodation throughout the capital, at a special meeting on Friday.

The 5% fee will be introduced from July 24, 2026, and will be capped a five nights in a row.

It’s expected that the levy could raise up to £50m a year for the city.

Businesses will need to apply the levy to any advance bookings made as of October 1, 2025, for stays on or after July 24, 2026.

Councillors held a meeting online on Friday where the measures were approved.

Council leader Jane Meagher described it as a “historic moment for Edinburgh”.

She added: “Introducing this ground-breaking visitor levy means realising a once-in-a-lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round.

“The scheme has been many years in the making, and I’m grateful to council officers, businesses and residents who have helped shape it every step of the way.

“It’s introduction is declared today with a huge amount of backing, not least from local residents.

“At all stages, we’ve listened to and taken account of the views of industry and other stakeholders. It’s in this spirit that we’ve also extended the amount of time hoteliers and small businesses will have to prepare for the changes that are coming in.

“It’s vital that we continue to work closely as we get ready to launch this scheme and deliver the many benefits it is going to bring. We’ve always said this is a city fund and spending decisions need to be taken with a whole city mindset, and we’ll soon be establishing a Visitor Levy Forum with an independent Chair. We’ll also be reporting next steps to executive Council committees.”

Neil Ellis, Chair of the Edinburgh Hotels Association, added: “Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors – local, national or international – through additional spending.

“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the World stage as a must visit destination.”

Donald Emslie, a representative of Edinburgh’s tourism industry, commented: “This new income stream presents a unique opportunity to generate significant funds for the city’s long-term development.

“The levy’s potential to generate transformative funds for the benefit of all who live, work, and visit Edinburgh is well recognised and I’m pleased to see a decision made to declare a scheme which will not only support spending on city operations and infrastructure, but sustain Edinburgh’s cultural offering and destination and visitor management.”