Edinburgh tourist tax plan backed by councillors

Charge will be applied to visitors who stay in hotels, B&Bs and properties let out through websites such as Airbnb

Edinburgh is on course to become Scotland’s first city with a tourist tax after councillors approved the plan.
The charge will be applied to visitors who come to the city and stay in hotels, B&Bs and properties let out through websites such as Airbnb.
A 12-week consultation period will be launched in the autumn, asking residents whether the proposed five per cent charge should be higher or lower.
It is expected that the tax will be introduced in summer 2026, making Edinburgh the first place in the UK to launch a city-wide tourist levy. At least 16 other local authorities, including Aberdeen and Highland, are considering following suit.
Edinburgh’s tax is expected to generate between £45 million and £50 million per year by 2028/29, with the city council promising that the money will be spent on services that “enhance visitor experiences”.
The levy was approved after the owner of one of the city’s most prestigious hotels warned last month that it would drive visitors to England.
Sir Rocco Forte, whose group of hotels includes the Balmoral in Edinburgh, said an additional tax would deter “cost-conscious visitors”, whom he predicted would “increasingly choose to go elsewhere”.
The SNP’s Visitor Levy (Scotland) Act gives councils the power to impose a tax on stays in any form of overnight accommodation. Providers are liable to pay the sum, but can pass on the cost to their guests.
Scottish ministers pressed ahead with the tax despite opposition from 63 per cent of organisations that responded to a public consultation on the plan. They argued that similar levies are in place in Europe, including tourist hotspots such as Amsterdam and Berlin.
Speaking after the vote backing the scheme, Cammy Day, the Labour council leader, 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.
“It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer.”
But Leon Thompson, the executive director of UKHospitality Scotland, the trade body, said: “The visitor levy will increase costs for both visitors and businesses in Edinburgh, and that cost must be kept to a reasonable minimum.
“It’s concerning that an even higher levy has been proposed than the five per cent in the draft scheme. I would urge extreme caution against setting the levy at a level which could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination.”
Meanwhile, SNP ministers disclosed further details of their proposals to introduce a 25p charge for single-use cups.
A Scottish Government consultation said it would apply to all disposable beverage cups, even those that were “biodegradable” or “compostable”.
Exemptions would be made for schools and free drinks handed out in hospitals or care homes. If it goes ahead, the charge would be introduced across Scotland by the end of 2025.