A TOURIST tax is due to be introduced in Edinburgh with a City of Edinburgh Council meeting approving the measure.
The tourist tax was voted on last week at a whole council meeting and it is now expected to come into effect in July 2026.
The 5% visitor levy will raise an estimated £50m a year for the local authority, funds that are planned be put to work in the city.
With the proposed tax passing its final hurdle, bookings paid either in part or in full after 1 October will be eligible for the tax.
Councillors met virtually – having been forced to work from home amid Storm Éowyn – to vote on the levy which was approved the previous week by the Policy and Sustainability Committee.
The levy is applied to overnight accommodation in the city, paid by guests and collected by accommodation providers.
Edinburgh has now become the first city in Scotland to implement a visitor levy after it was brought into law by the Scottish Government in September 2024.
The 5% pricing applies to the cost of overnight stays in the city with the amount being derived from and added on top of the overall cost of the stay.
The levy will be charged on hotels, self-catering apartments, aparthotels, bed and breakfasts, guest houses, hostels and student lets – only when let to visitors and non-Edinburgh students
It will also apply to vehicles or boats (vessels) which mostly stay in one place, holiday/short-term lets including residential properties with licenses for, home sharing, home letting, secondary homes and caravan/camp sites.
Proceeds generated by the tourist tax must be used for the benefit of the Scots capital by “developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting [overnight] for leisure or business purposes (or both)”.
Council leader Jane Maeghar said: “What an historic moment for Edinburgh.
“Introducing this ground-breaking visitor levy means realising 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.
“The scheme has been many years in the making and I’m grateful to council officers, businesses and residents who have helped shape it, every step of the way.
“Its introduction is declared today with a huge amount of backing, not least from local residents.
“At all stages we’ve listened to and taken account of the views of industry and other stakeholders.
“It’s in this spirit that we’ve also extended the amount of time hoteliers and small businesses will have to prepare for the changes that are coming in.
“It’s vital that we continue to work closely as we get ready to launch this scheme and deliver the many benefits it is going to bring.
“We’ve always said this is a city fund and spending decisions need to be taken with a whole city mindset, and we’ll soon be establishing a visitor levy forum with an independent chair.
“We’ll also be reporting next steps to executive council committees.”
