Edinburgh Council Backs Tourist Tax

A general view of Edinburgh looking towards Edinburgh Castle and the Balmoral Clock in Scotland on Sept. 25, 2016. PA Wire/PA Images

Edinburgh has moved one step closer to being the first place in the UK to introduce a tourist tax, after the city’s lawmakers backed the measures.

Under the draft plans agreed by councillors on Thursday, tourists would be charged a 5 percent tax on accommodation per night, capped at seven consecutive nights.

Accommodations where the fee will be charged will include hotels, hostels, bed and breakfasts, and short-term lets such as those bookable on Airbnb. Campsite stays will be excluded.

The next step in the process will be a 12-week public consultation where input will be sought from businesses, residents, and visitors and this will inform the details of the final scheme which will be agreed in January 2025. It is expected the Visitor Levy will come into force in the summer of 2026.

The City of Edinburgh Council says that the tourist tax will raise between £45 to £50 million a year by 2028/2029, which will be invested in the city’s infrastructure and tourism.

The council called the plans “groundbreaking,” saying in a statement, “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.”

Council Leader Cammy Day, of Scottish Labour, called the plans a “once-in-a-generation opportunity for Edinburgh.”

Day said: “We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.”

‘Pernicious Tax’

Several heritage and business organisations support the Visitor Levy, including Neil Ellis, chairman of the Edinburgh Hotels Association, who said his organisation “welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.”

“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination,” Ellis added.

But UKHospitality Scotland has expressed concern, with its executive director Leon Thompson saying, “The visitor levy will increase costs for both visitors and businesses in Edinburgh, and that cost must be kept to a reasonable minimum.”

“UKHospitality Scotland will consult with members across Edinburgh during the consultation period and respond, reflecting the views of our members,” Thompson said.

This year the Scottish Parliament gave local councils powers to raise revenue by taxing visitors through the Visitor Levy (Scotland) Act, with Public Finance Minister Tom Arthur saying that he believed a tourist tax “can be a force for good.”

Hotelier Sir Rocco Forte called for a boycott of the levy, writing in The Scotsman last month that it was a “pernicious tax which will be charged on top of other taxes that can only damage tourism, the lifeblood of much of the Scottish economy.”

Forte added that the tax in Edinburgh could influence visitors to spend fewer nights in the city, tip less, and spend less at local retailers.

‘Deeply Disappointing’

The Scottish Conservatives have criticised the move, saying in a post on social media platform X on Friday: “Tourism businesses in Scotland are already facing a huge tax burden.

“It’s deeply disappointing that Labour-led Edinburgh Council have chosen to hit visitors, small businesses and Edinburgh’s local economy with this harmful tourist tax.”

Earlier this month, Member of Scottish Parliament Sue Webber highlighted that the tourism tax will not only affect those visiting from overseas or even from other parts of the UK, but Scots visiting their capital.

Posting on X, the Scottish Conservative wrote: “The truth about Edinburgh’s ’tourist tax': If you live in West Lothian—you’re a tourist. If you live in East Lothian—you’re a tourist. If you live in Fife—you’re a tourist. Scots living outside the City of Edinburgh council boundary will all be tourists in their own capital city!”