Edinburgh Visitor Levy comes into force as visitors face 5% tax on overnight stays

Edinburgh has become the first UK city to introduce a tourist tax.

The new visitor levy will see those staying in hotels, B&Bs, short-term lets and other forms of tourist accommodation charged an additional 5% surcharge on the first five nights of their stay.

It comes as the city gears up to welcome hundreds of thousands of tourists for the Edinburgh festivals.

Glasgow, Aberdeen and Stirling councils have also voted to introduce their own charges, while several other local authorities are consulting on introducing a levy.

Council leader Jane Meagher said: “This is such an important moment for our city – and for our residents and visitors. It’s the result of a huge amount of work over many, many years and I am proud to be the first local authority in the UK to push ahead with a city-wide visitor levy scheme. We now have a unique opportunity to invest more in the things that make our city so special.

“We know that the city’s popularity comes at a cost through the pressure it puts on our services and on the people who live and work here all year round. This small new contribution from overnight visitors will help improve the services and public spaces we all depend on, while better managing the effects of tourism and major events.”

View from the Calton Hill on Princes Street in Edinburgh. iStock

The council say the levy will help fund local services and infrastructure including a new city centre police unit, cleaning and the restoration of much-loved buildings.

She added: “This is a big opportunity for us all to work together and enhance Edinburgh’s position as one of the most popular visitor destinations in the world.”

Chair of the Edinburgh Visitor Levy Advisory Forum, Julie Ashworth, said they are continuing to consult with residents and council officers.

“We all want Edinburgh to remain a world‑class destination in a way that works for everyone, and the levy is now ready to deliver transformative investment that will protect its unique heritage and support its future success.

“From revitalised public spaces to better visitor infrastructure and experiences, we’re confident the levy can help Edinburgh stay welcoming, resilient and successful.”

Visitor levies are already used in popular tourist destinations around the world, including Paris, Barcelona and New York.

The council says funds from the tourist tax will help build a city centre policing unit iStock

The Scottish Greens, who secured the power to apply a levy during previous budget talks, have urged councils across Scotland to follow Edinburgh’s lead and consider introducing a visitor levy to help fund vital local services such as schools, libraries and housing.

Edinburgh Greens councillor Ben Parker said: “I’m delighted the visitor levy has finally been introduced in the capital and will start raising much-needed funds to invest in housing and public services across the city.

“The idea of a ‘tourist tax’ was first suggested by Green councillor Steve Burgess way back in 2011 and was met by howls of outraged opposition from hoteliers at the time.

“In reality, this is a very modest addition to what visitors are already paying to stay in Edinburgh, but it will raise vital funds to invest in public services in the capital. This is a milestone to be welcomed.”

Scottish Green MSP for Edinburgh Central, Lorna Slater, said: “This will be a big boost for Edinburgh and for local services.

“We hope that other councils will be watching closely, learning from Edinburgh’s experience and considering how a visitor levy could work for them too.

“Tourism can bring a lot of money into local economies, but councils and residents often see very little benefit from it. It is right that tourists are able to contribute to the services they are using, and that local people feel the benefit.”

But the move has received a mixed response from the public, businesses and politicians.

The Scottish Ballet says the bill for housing its touring company has soared by 72% iStock

The Scottish Ballet has led calls for exemptions for national performing arts companies after it said its bill for housing its touring company of up to 150 performers and crew has risen by 72% between December 2019 and December 2025 – and now tops more than £200,000.

The Scottish Tourism Alliance has renewed its concerns over the potential effect on Scotland’s tourism and hospitality sector, warning that the levy arrives at a time when many businesses continue to face rising costs and mixed trading conditions.

Marc Crothall MBE, chief executive of the Scottish Tourism Alliance said: “There’s great uncertainty around how visitors will respond and if it will affect demand by both domestic and international visitor be it for business and or leisure.

“Will it lead to some choosing not to stay over in Edinburgh or to take shorter stays, or will it result in people still coming but spending less in the destination’s restaurants, pubs, shops, attractions, and other local businesses?

“These are impacts we’ll be monitoring over the coming weeks and months, and we will be expecting authorities to do the same.”

The Federation of Small Businesses (FSB) also appealed for patience on behalf of accommodation providers in Edinburgh as the country’s first Visitor Levy is introduced at their busiest time of year.

Edinburgh, Scotland, UK - The Royal MIle crowded on the opening weekend of the Edinburgh Festival and Edinburgh Festival Fringe. — Edinburgh, Scotland, UK – The Royal MIle crowded on the opening weekend of the Edinburgh Festival and Edinburgh Festival Fringe. iStock

Garry Clark, FSB’s east of Scotland engagement manager, said: “This is a significant change for Edinburgh’s accommodation sector, and it comes at the busiest time of the year for them. Collecting the levy, explaining it to guests, training staff and becoming familiar with the new systems all add to the workload during an already exceptionally demanding period.”

He noted that the booking system for transferring the funds collected to the city council are all new to accommodation providers, and many visitors will be paying it for the first time.

He continued: “We would ask visitors to be patient if the introduction of the levy means check-in or booking processes take a little longer than usual in the early weeks. Introducing a new tax collection system at this time of year inevitably creates extra pressure and increases the risk of mistakes.

“Small accommodation providers will be doing everything they can to make the transition as smooth as possible while continuing to provide the warm welcome Edinburgh is known for.

The visitor levy will be enforced across Edinburgh's hotels and holiday lets — The visitor levy will be enforced across Edinburgh’s hotels and holiday lets iStock

“Looking ahead, it’s important that the council listens carefully to businesses as the levy beds in, addresses any practical issues quickly and demonstrates clearly how the revenue is being invested to support Edinburgh’s visitor economy and the communities that host it.”

Meanwhile hospitality chiefs have warned other council areas, particularly in rural areas, could see a greater impact on tourism and the local economy.

Leon Thompson, executive director of UKHospitality Scotland, said: “The UK’s first visitor levy is not a cause for celebration. It’s a landmark moment for all the wrong reasons – increasing costs for visitors, hitting Edinburgh’s local economy and harming our reputation on the world stage.

“It has not taken long for visitors to notice the price increases that hotels have been forced to pass through, because of the significant 5% visitor levy, alongside increased costs of operating. Including increases in business rates.

“If this was replicated by local authorities across Scotland, particularly in rural areas, the ramifications could be far greater, with significant impacts on tourism, hospitality and the local economy as a whole.

“I hope local authorities currently consulting on introducing a levy undertake the detailed economic impact assessments required to fully understand the impact on their local economy and community.”