It follows in the footsteps of Venice and Berlin
Edinburgh has become the first city in the UK to introduce a comprehensive tourist tax.
Around five million tourists visit the famous Scottish capital each year as they flock to its famous Fringe festival, or to take a look at the site that inspired Diagon Alley in Harry Potter but now it will cost more to do so.
European cities such as Amsterdam, Berlin and Venice have already introduced a tourism tax to raise much needed funds for the area.
Despite it being a UK destination, Brits won’t get a special pass when visiting the city and will be subject to the same fees as everyone else.
The tax, known as the Transient Visitor Levy, will charge guests at hotels, B&Bs, hostels and holiday rentals like Airbnbs, 5% of the room cost, per night.
The fee is capped at seven consecutive days, meaning tourists will only be charged for one week, even if they’re going to be staying for longer in the same accommodation.
If you stayed in an £80 per night Airbnb, you would pay £4 per night in tourist tax. The more expensive the accommodation, the more expensive the tax.
It’s being implemented as a VAT surcharge, meaning you won’t have to make a separate payment, it will be added on to your accommodation costs.
This charge is expected to raise up to £50 million per year by 2029 and the council claims it will be invested in infrastructure, affordable housing, culture, heritage and events, with 35% of funds put aside for the arts sector.
The tourist tax will come into force on July 24, 2026 but there will be a transitional period.
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It’s thought that you will have to pay the tax on accommodation bookings made after May 1, 2025 – but only if you’re booking in advance for a stay taking place after July 24 next year.
Hotels and booking sites will also be advised by city officials to advertise the Transient Visitor Levy properly in advance, so tourists don’t feel caught out.
While there are some places in the UK with a small-scale visitor levy such as Manchester who have a £1 surcharge on accommodation in 74 hotels and serviced apartments in its city centre business investment district, Edinburgh becomes the first city to implement a mandatory city-wide visitor levy in the UK.
Bournemouth, Christchurch and Poole have a £2 per room per night charge for visitors who choose to stay in larger hotels in the area while Liverpool is expected to bring in a £2 per night charge for hotel rooms by June 2025.
Wales may also introduce a visitor levy for people staying overnight, proposing a charge of 75p per night to stay in campsites and hostels, and a charge of £1.25 for hotels, B&Bs and holiday lets. If approved, the tax would not come into force until 2027 at the earliest.
