Edinburgh has become the first UK city to introduce a comprehensive tourist tax.
Around five million tourists visit the famous Scottish capital – known for it’s rich history, Fringe festival and inspiring Diagon Alley in Harry Potter – but it’ll soon cost a little more to do so.
This new charge follows in the footsteps of cities like Amsterdam, Berlin and Venice who tax tourists to raise 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.
Here’s everything you need to know…
What is Edinburgh’s tourist tax and how much do I have to pay?
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 you will only be charged for one week, even if you’re going to be staying for longer in the same accommodation.
For example, 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.
When does Edinburgh’s tourist tax come into effect?
The tourist tax will come into force on July 24, 2026 but there will be a transitional period.
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.
When it comes into effect it will become the first mandatory city-wide visitor levy in the UK.
Do I have to pay tourist tax in other UK areas?
There are currently some UK cities with a small-scale visitor levy, specific to only certain types of accommodation – rather than a blanket tax.
For example, Manchester has a £1 surcharge on accommodation in 74 hotels and serviced apartments in its city centre business investment district, and part of Salford.
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Bournemouth, Christchurch and Poole have a £2 per room per night charge for visitors who choose to stay in larger hotels in the area.
'I'd pay Edinburgh's tourist tax in a heartbeat'
Metro’s lifestyle reporter Alice Giddings spent plenty of time in the capital when she lived in Scotland for a three-month period.
She says: ‘I can say with complete certainty that I’ve never been to a UK city with so much charm – and so many hills.
‘You’ll want some decent trainers to walk Edinburgh’s windy and lengthy streets, plus you’ll need to battle some steep inclines but it’s 100% worth it.
‘I’d recommend doing all the cliché tourist things like Edinburgh Castle and Victoria Street. The Royal Botanic Gardens are a delight in the summer, as is the view from Arthur’s Seat.
‘When it comes to food though, if you love French toast you’ll want to head to Hot Dolce. Words can’t express how delicious it is. But I’d say my all-time favourite brunch spot is Urbanangel. It’s got a classic brunch menu and it’s always busy. Honestly, the coffee is some of the best I’ve ever had.
‘The architecture is stunning and the cobbled streets are home to countless little independent designers if you’re a sucker for shopping. It’s also been dubbed the best city for quality of life with clean air and gorgeous green spaces – what’s not to love?’
Liverpool is expected to introduce a smaller tourist tax by June 2025 which is also a £2 per night charge administered by hotels.
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. This tax, if approved would not come into force until 2027 at the earliest.
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The Highland Council in Scotland is also considering a tourist tax similar to Edinburgh’s Transient Visitor Levy, charging a percentage of the accommodation costs per night. It’s estimated this could raise £10 million per year.
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