Edinburgh begins charging tourist tax on overnight stays

Visitors staying overnight in Edinburgh will now have to pay a tourist tax, as Scotland's capital officially introduced a new visitor levy on July 24.

The new charge adds a 5% fee to the cost of all paid overnight accommodation, including hotels, bed and breakfasts, hostels and short-term holiday rentals such as Airbnb properties, Caliber.Az reports, citing Euronews.

Edinburgh is the first city in Scotland to implement a tourist tax and expects the levy to generate up to £50 million (€58 million) annually to support public services, tourism infrastructure and improvements across the city.

The visitor levy was approved by city councillors in January 2025. The 5% surcharge applies to bookings made on or after Oct. 1, 2025, for stays beginning on or after July 24, 2026. The tax is capped at five consecutive nights and remains the same throughout the year.

“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,” says Council Leader Jane Meagher.

“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.”

Revenue from the levy will be invested in projects aimed at improving city infrastructure, cultural attractions and visitor management. In February, councillors approved the first funding package, allocating more than £90 million (€105.3 million) over the next three years.

Among the first initiatives are a £132,000 (€154,400) contribution to Edinburgh's Festival Carnival and Mardi Gras events and a partnership with Police Scotland to establish a City Centre Policing Unit to strengthen public safety.

Future projects include £1.3 million (€1.52 million) for enhanced waste collection, street cleaning and patrols in the city centre, as well as £2 million (€2.34 million) and £2.5 million (€2.93 million) to upgrade the Cramond foreshore and Portobello Promenade, two of Edinburgh's key coastal attractions.

The city also plans to increase investment in its parks by expanding repair budgets, doubling the number of park rangers and improving green spaces through additional landscaping and planting.

"From revitalised public spaces to better visitor infrastructure and experiences, we're confident the levy can help Edinburgh stay welcoming, resilient and successful," says Julie Ashworth, Chair of the Edinburgh Visitor Levy Advisory Forum.

By Bakhtiyar Abbasov