Edinburgh to be 1st UK City to Introduce Tourist Tax

Edinburgh is set to be the first UK city to introduce a tourist tax, and it will also apply to British citizens visiting overnight.

Edinburgh To Be First UK City To Introduce Tourist Tax

"the biggest single injection of new funding"

In the first mandatory city-wide scheme in the UK, visitors staying in Edinburgh will be subject to a five per cent tourist tax.

This is five per cent of the room cost per night and applies to all overnight visitors.

Known as the ‘Transient Visitor Levy’, the tourist tax will impact at least 4,000 providers.

The levy will only apply to the first five days of any stay instead of the originally planned seven days.

This change was made after lobbying from the city’s festivals. They argued that the original plan unfairly penalised the thousands of people with seasonal jobs in the events industry.

Attracting millions of tourists annually, Edinburgh is known for its rich history, architecture, and internationally renowned events, like the Fringe Festival.

The council voted in August 2024 to introduce the tax after the Scottish government passed legislation giving local authorities the power to do so.

On January 17, 2025, Edinburgh City Council’s policy and sustainability committee met and agreed to introduce a five per cent levy in principle. They rejected calls from the SNP and Greens to increase it further.

The levy will be presented to the full council for approval at a special meeting on January 24, 2025. Adjustments have been made to reflect public feedback, so it is expected to pass without issue.

Edinburgh’s scheme is the first to encompass all types of accommodation, including campsites, hostels, Airbnb properties, apart-hotels, and hotels.

Despite Edinburgh being a UK city, British citizens will not escape the tax as they will be subject to the same fees as all other visitors.

The levy will start being applied to overnight accommodation bookings made on and after May 1, 2025, for the city on and after July 24, 2026.

This is part of a phased introduction to the scheme.

City officials recommended a long lead-in time to ensure visitors knew about the tourist tax early.

The phase-in is also to help ensure hotels and booking portals advertise the charge properly in advance.

Council leader Jane Meagher asserted:

“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.

“The funding could provide Edinburgh with the biggest single injection of new funding this side of the millennium.

“Providing a unique opportunity to further improve and protect all that makes Edinburgh the incredible destination it is today.

“We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents.”

The levy is expected to raise up to £50m annually by 2029.

The funds raised are intended to tackle the heavy impact of mass tourism on the city. The goal is to invest funds in new social housing, public parks, tourism facilities, and arts and cultural events.

Some have warned that the tax will deter visitors. It has been highlighted that Edinburgh is already considered an expensive place to visit.

Edinburgh has higher taxes, including VAT at 20%, which is more than most European destinations. For example, in Barcelona, the current VAT rate on hotel accommodation is 10%.

However, supporters of the tax highlight that tourist taxes are commonplace across Europe and beyond. Stressing that there is little discernible impact on visitor numbers.

Smaller-scale and voluntary visitor levies, which do not involve all types of accommodation providers, exist. They are in force in several English cities, including Manchester.

Manchester charges a one pound surcharge on accommodation. This is in 74 hotels and serviced apartments in the city’s centre business investment district and part of Salford.

Somia is our content editor and writer who has a focus on lifestyle and social stigmas. She enjoys exploring controversial topics. Her motto is: "It's better to regret what you have done than what you haven't."




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