The first tourist tax to be imposed in the UK will be a 5% overnight stay fee for tourists to Scotland’s capital starting in 2026. This project, which is expected to bring in £50 million a year, attempts to solve financial difficulties in a city that is frequently listed as one of the best places to visit in the world.
Although the tax has been praised as a chance to improve Edinburgh’s infrastructure and tourism appeal, some contend that its effects go beyond visitors and harm anyone spending the night for business or pleasure.
A First for the UK: A Bold Step to Fund Local Infrastructure
The City of Edinburgh Council‘s decision to impose the levy follows Scottish Parliament’s 2022 legislation granting councils the authority to introduce visitor taxes. Starting July 24, 2026, the charge will apply to overnight stays in hotels, B&Bs, and other short-term accommodations for up to seven nights.
Council leader Jane Meagher described the measure as a “once-in-a-lifetime opportunity” to invest in Edinburgh’s future. The funds are expected to support the city’s infrastructure, cultural heritage, and services, ensuring Edinburgh maintains its status as a leading tourist destination.
European cities such as Amsterdam and Berlin, which have long implemented similar taxes, have used revenues to enhance urban upkeep and tourism infrastructure. Comparatively, Edinburgh’s modest 5% rate falls below Amsterdam’s 12.5% levy and Berlin’s 7.5% charge, positioning the city as a competitive option for visitors despite the additional cost.
Backlash Highlights Broader Implications of ‘Tourist Tax’
Criticism has mounted over the levy’s blanket application, with concerns that it affects not only tourists but also those travelling for work, hospital visits, or family emergencies.
Social media users have voiced frustrations, arguing the term “tourist tax” is misleading. Many have pointed out that workers staying overnight for business purposes or families visiting ill relatives would also face the additional cost. This has raised questions about the fairness of the policy and its potential impact on non-leisure travellers.
UK Hospitality Scotland has cautioned that the levy could deter visitors and reduce spending in Edinburgh’s wider visitor economy, ultimately affecting local businesses. Leon Thompson, Executive Director of UK Hospitality Scotland, highlighted the challenge, stating, “Not only has Edinburgh’s visitor levy been confirmed, but so too has the hit to the city’s competitiveness as a leading tourist destination.”
