The City of Edinburgh Council has voted to introduce a charge for visitors in a move expected to raise tens of millions of pounds each year.
The Scottish capital will become the first city in the UK to charge a transient visitor levy similar to schemes in European cities such as Amsterdam.
The charge will be applied to visitors who come to the city and stay in hotels, B&Bs and properties let out through websites such as Airbnb.
The levy is expected to generate tens of millions of pounds a year to reinvest in the city’s infrastructure and sustainable tourism from summer 2026.
A formal 12-week public consultation seeking further input from residents, visitors and businesses, will commence in the coming weeks. This will inform the final scheme, which will be agreed in January 2025, allowing the 18-month implementation period to begin.
Edinburgh will become the first place in the UK to launch such a city-wide levy, which will drastically help the Council manage the demands of increased tourism while ensuring sustainable investment in the visitor economy, public services, city maintenance, affordable housing and preserving the Capital’s cultural heritage.
Key highlights of the draft visitor levy scheme include:
- Flat 5% charge per night: Visitors staying in accommodation will be required to pay a small, fixed fee per night of 5% of the accommodation cost, capped at seven consecutive nights.
- Wide range of accommodation: The levy will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts, but will exclude stays in campsites.
- Funding allocation: The levy is expected to raise £45-50 million a year by 2028/29. Revenue generated will be reinvested directly into initiatives that benefit residents and enhance visitor experiences, such as a ‘Well Kept City Fund’, affordable housing, city infrastructure, destination marketing and support for major events and festivals.
- Shaped with industry input: The draft scheme has been shaped by many years of engagement with local businesses, residents, and tourism stakeholders including hoteliers.
- Expected to launch 2026: When the draft scheme is finalised, early in the new year, the Council will begin working with partners to implement the Visitor Levy and make it live by Summer 2026.
However, UKHospitality Scotland has warned against increasing the proposed levy to an unsustainable level, following the first Council vote.
Leon Thompson, Executive Director of UKHospitality Scotland, said:
“The visitor levy will increase costs for both visitors and businesses in Edinburgh, and that cost must be kept to a reasonable minimum.
“It’s concerning that an even higher levy has been proposed than the 5% in the draft scheme. I would urge extreme caution against setting the levy at a level which could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination.
“Business costs to set up and administer the levy will be significant and it’s positive that the Council has so far backed a mechanism for businesses to recover their costs.
“UKHospitality Scotland will consult with members across Edinburgh during the consultation period and respond, reflecting the views of our members.”
