Edinburgh tourist tax spending plans announced

On 29 January, the City of Edinburgh Council’s Transport and Environment Committee broadly agreed on the proposed projects, which are to be funded by the incoming tourist tax.

The visitor levy, or tourist tax, is a 5 per cent payment on the cost of paid overnight accommodation, and will come into force on 24 July 2026.

Set to begin just weeks before the Edinburgh Fringe, the extra tourist charge risks making tourism in Edinburgh less affordable than it already is.

According to Visit Scotland’s statistics, in the City of Edinburgh in 2024, the average overnight visitor spent £504. 

However, it is expected to raise £45-50m a year by 2028, with the revenue used to fund sustainable development and community projects.

At the forefront of Edinburgh City Council’s city transformation strategy is George Street.

The pedestrianisation, pavement refurbishment, and increased tree cover in George Street are projected to cost £31.7m and to start in Autumn 2027.

Councillor Stephen Jenkinson calls George Street “one of the crown jewels.”

“We have the opportunity to deliver the project and transform George Street and the First New Town as the Visitor Levy unlocks the funding mechanism.”

Other transformation projects will take place on Old Town streets and Portobello Promenade and aim to create a quieter, safer, and more accessible environment.

With Teviot set to reopen in March 2026 after almost three years of renovations and delays, and North Bridge under construction since 2018, students are understandably sceptical about how the construction will affect them. 

Zach, a second-year Economics student, was apprehensive about the plans, telling The Student: “I hope it doesn’t take too long.”

Another student commented: “As long as it doesn’t end up looking like North Bridge.”

Image by Spencer Siles for The Student