From 24 July 2026, visitors to Edinburgh will pay more for overnight stays as part of a “tourist tax”, the first of its kind in Scotland.
The new 5 per cent levy on accommodation is estimated to raise as much as £50 million per year once it is in place.
This levy will apply to hotels, hostels, and short-term lets, with businesses required to use it for bookings made from 1 October 2025.
Collected funds will be dedicated to investment in sustaining the infrastructure that supports the visitor economy, and Council Leader Jane Meagher has argued the move is a “once in a lifetime opportunity” to invest in the city and preserve public services.
The idea of a “tourist tax” in Edinburgh has been widely debated, and hospitality groups, including UKHospitality Scotland, have argued that the levy must be kept to a “reasonable minimum” to protect Edinburgh’s reputation as a leading tourist destination.
However, many residents welcome the tax in hopes that it will ease the pressures of mass tourism in the city.
Some students also pointed to the levy’s potential benefits: “If the policy aims to incentivise landlords to make their properties available for people who live in and contribute to Edinburgh, I support it wholeheartedly”, said one University of Edinburgh student.
The debate will likely continue as other councils across Scotland consider similar measures, raising questions about how Scotland’s tourist economy should be balanced with the needs of residents.
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