Tourists face tourism tax in UK city to help fund city projects and reduce car usage

A juggler performing for tourists on Royal Mile in Edinburgh
-Credit: (Image: Jeff J Mitchell/Getty Images)


Motorists could be hit with a 'tourism tax' in a bold bid to tackle congestion on the streets of Edinburgh. The Scottish capital is set to introduce charges for visitors as part of efforts to fund city projects and reduce car usage.

The Transient Visitor Levy is scheduled to come into effect on September 20, targeting those staying in various types of accommodation, including hotels, B&Bs, hostels, and holiday rentals such as Airbnbs. Guests will incur a charge of five per cent of the room cost per night, capped at seven nights.

Council Leader Cammy Day commented: "This is a once in a generation opportunity for Edinburgh and I'm pleased to see Government move quickly on this. We're looking forward to harnessing the opportunities the new legislation will bring."

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Day also remarked: "Since the Visitor Levy Scotland Bill became an Act on July 5, we've been working on our plans to run a wide scale public consultation that will seek views on our draft scheme. We've spent many years designing a scheme that works for our city, and we've published details of our plans for a five per cent levy on overnight stays."

Marc Crothall, the chief executive of the Scottish Tourism Alliance, expressed his concerns to Skift, saying: "It remains a very contentious matter. There are concerns around the future total price point to the customer and what impact this might have on future bookings," reports Birmingham Live.

The proposed fee will align Edinburgh with other major European tourist hotspots such as Amsterdam, which imposes a 12.5 per cent tourist tax, and Berlin. However, there are concerns among some tourism operators that the levy could potentially make Edinburgh less attractive to holidaymakers.

In addition, The Highland Council is contemplating the introduction of a tourist tax, following new powers granted by the Scottish Government. This region, renowned for its mountains and glens, welcomes over six million tourists annually, including day visitors and cruise ship passengers.