Edinburgh becomes first U.K. city to introduce tourist tax

Edinburgh has become the first city in the United Kingdom to introduce a tourist tax on overnight accommodation.

The levy took effect July 24 and adds five per cent to the cost of an overnight stay in the Scottish capital, according to the city’s official website. 

It applies to a maximum of five consecutive nights.

Scotland’s Visitor Levy Bill, passed in May 2024, gave municipalities the authority to establish their own visitor charges. 

Edinburgh councillors approved the city’s levy in January 2025.

“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,” said Council Leader Jane Meagher in a July 23 media release. 

“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.”

The levy is expected to generate as much as £50 million annually, equivalent to more than US$67 million.

The city said the money will be used to “invest in protecting, supporting and enhancing Edinburgh's worldwide appeal as a place to live and visit.”

Planned investments include replacing and upgrading public waste bins, hiring additional park rangers, planting trees and restoring heritage and cultural sites. 

Funding is also expected to help transform Leith Theatre into a year-round live music venue.

The levy applies to overnight visitors rather than day trippers. 

It covers all forms of paid accommodation, including hotels, short-term rentals such as Airbnbs, hostels and campsites.

The five per cent charge applies only to the accommodation portion of the bill.  Additional services, including parking and laundry, are excluded. 

It is calculated on the room rate rather than charged separately to each guest. For a hotel room costing £100 per night, the levy would add £5 per night. 

A five-night stay that previously cost £500 would therefore cost £525.

Accommodation providers are responsible for calculating the charge and adding it to the final bill, so travellers will not need to determine the amount themselves.

Edinburgh joins several European destinations that have introduced visitor charges in response to the effects of overtourism. 

Amsterdam and Venice are among the cities using similar fees to support local infrastructure and residents.

Glasgow is expected to follow Edinburgh with its own five per cent accommodation levy beginning Jan. 1, 2027, according to Scotland’s visitor levy website.

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