Edinburgh Introduces U.K.’s First Tourist Tax

Edinburgh is set to become Scotland’s first city with a tourist tax.

Edinburgh city counsellors have voted in favor of a 5% fee for overnight stays at hotels, bed and breakfasts, self-catering accommodations, and short-term homestays like Airbnb. The tourist tax is applied per night for up to seven consecutive nights.

The new fee will take effect from July 24, 2026. 

The capital city of Scotland sees approximately 5 million visitors a year, and the council expects the new fee to raise £45 to 50 million ($56 to 62 million USD) a year by 2028 or 2029.

The revenue generated by the new Edinburgh tourist tax will go towards city upkeep as well as well as affordable housing, said council leader Jane Meagher.

“They will see cleaner streets, they will see quicker removal of graffiti, better environmental improvements, more attractive spaces and better transport connections,” said Meagher (via BBC).

Edinburgh unveiled the new tourist tax in August 2024, followed by a 12-week consultation period with residents and business owners. While the majority of residents agreed with implementing a visitor levy (96%), only 42% of businesses thought it should be 5%, and 51% said they either did not support the levy or felt it should be less than 5%, according to a council notice. 

While Edinburgh is the first city in the U.K. to implement a tourist tax, it joins a growing list of cities around the globe to do so. In 2024, several cities announced new tourist taxes, including Barcelona’s cruise tax, Greece’s climate tax, and Lisbon’s tourist and cruise tax.