Tax on tourists and travelers coming soon to this popular city

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A "tourist tax" on hotels beginning next year will be implemened in Edinburgh, Scotland - a first in the United Kingdom. 

In late January, The City of Edinburgh Council decided to move forward with a 5% per night fee on overnight accommodations within the city. The tax goes into effect on July 24, 2026.

The new tax is "is a 5% payment on the cost of the paid, overnight accommodation. The levy will be charged before VAT and will not be charged on extras like parking, meals, drinks or transport," said the website for the City of Edinburgh Council. 

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This fee will not only apply to hotels, said the website. 

It will also be levied on "self-catering apartments, aparthotels, bed and breakfasts, guest houses, hostels, student [rentals] - only when [rented] to visitors and non-Edinburgh students, vehicles or boats (vessels), which mostly stay in one place, holiday/short term [rentals], and caravan/camp sites," said the city's website. 

The tax will be capped after the first five consecutive nights, said the city's website. 

While it is referred to as a "tourist tax," anyone who is paying for accomodation in Edinburgh, for any reason, will have to pay. 

"Anyone who is staying in paid, overnight accommodation in Edinburgh need[s] to pay the levy," said the council's website.

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"This includes tourists, people staying for work or visiting the city for other reasons. This includes U.K. and Scottish residents." 

The City of Edinburgh Council believes that the new tax will raise about £50 million (about $63 million in U.S. dollars) a year. 

Councillor Jane Meagher, leader of the city's council, called the new tax a "historic moment for Edinburgh." 

She continued, "Introducing this ground-breaking visitor levy means realizing a once-in-a-lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit - and live in - all year round."

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Meagher praised the tax and said it has a "huge amount of backing, not least from local residents." 

Not everyone, however, is excited about the changes.

Leon Thompson, UKHospitality Scotland executive director, voiced his disapproval of the new tax, saying it will make the city less competitive as a tourist destination.

"Our fundamental concern has always been that this levy will only serve to make visitors' trips to Edinburgh more expensive, ultimately reducing their spending in the wider visitor economy and deterring future visits," he said in a statement. 

"It's now the job of the council to use these funds wisely to improve the capital's attractiveness as a visitor destination and mitigate the impact of the levy on businesses."