Edinburgh tourist tax to be introduced in first for Scotland

Tourists wait to enter a Harry Potter merchandise shop on Victoria Street, thought to be the inspiration for Diagon Alley in the Harry Potter books, on June 5, 2024 in Edinburgh. Sam Thorne guides Harry Potter fans through the gothic streets of Edinburgh, where controversial author JK Rowling dreamt up the boy wizard more than three decades ago. The Scottish capital attracts lovers of the bespectacled schoolboy from across the world, boosting the UK economy and helping generate billions of pounds in global sales of Potter-related offerings. (Photo by Andy Buchanan / AFP)
-Credit:Andy Buchanan / AFP


Edinburgh is set to become Scotland's first local authority to introduce a tourist tax on visitors to the city through a levy on accommodation costs.

The City of Edinburgh Council has said they are "days away from grasping a ‘once in a lifetime’ opportunity" that will "enhance and improve" the Scottish capital with councillors set to decide whether to back the new tax in a meeting later this month.

It follows similar schemes already implemented in other European cities such as Germany, Spain and Italy. It's hoped that the levy could raise around £50m in funds per year from a 5% accommodation tax. If passed, the tax would begin in July 2026.

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The news follows years of campaigning and engagement from the Council, including successfully advocating for a visitor levy to the Scottish Government to bring forward necessary powers.

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The council voted in August last year to introduce the tax. A 12-week public consultation then followed that revealed that the majority of respondents were supportive of the Visitor Levy plans.

Feedback included capping Edinburgh’s levy at five consecutive nights per person instead of seven, introducing a levy grace period until May 2025 for bookings made for July 2026, and making temporary campsites and parks liable for the levy.

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However, some business leaders have concerns that it could hurt trade.

Leon Thompson, executive director of the trade body UK Hospitality Scotland, has called for the levy not to be raised above 5%, after the Scottish Greens previously called for the levy to be set at the higher rate of 8%.

He said: "It's positive that the council has listened to strong feedback from hospitality businesses on this point.

"I would urge councillors to understand that the rate cannot be punitive and to be mindful of the impact any additional costs will have on businesses and visitors."

Edinburgh Council Leader Jane Meagher said: "This is the moment we have been working towards – a once in a lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.

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"With income of up to £50 million expected once it is established, the funding could provide Edinburgh with the single biggest injection of new funding this side of the millennium, providing a unique opportunity to further improve and protect all that makes Edinburgh the incredible destination it is today.

"We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents. I’m looking forward to working with Councillors to agree the scheme this month, which will allow further work to be carried out on the details of Edinburgh’s new levy."

A number of other Scottish local authorities have expressed interest in a tourist tax, with the Highlands Council also proposing a 5% levy which could raise at least £10m, a year.

A public consultation into the plans is currently running until February. If the proposal goes ahead, there would be an 18-month implementation period before the visitor levy is introduced in September 2026.

Stirling Council has also agreed to further explore the measure which could come into force in 2027, while Argyll and Bute Council is also holding a public consultation.

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