In an effort to boost local development, Edinburgh will soon be the first Scottish city to implement a tourist levy.
What You Need to Know About Edinburgh's Transient Visitor Levy
A five percent tax will be levied on overnight stays in various types of accommodations, such as hotels, bed-and-breakfasts, hostels, and vacation rentals.
The daily charge will be limited to a maximum period of seven continuous days, effective from 2026 onwards.
It has been stated by authorities that the allocated funds will be utilized in multiple sectors such as building better infrastructure, increasing availability of affordable homes, boosting tourism through effective management, preservation of cultural and historical significance, and staging various events.
Concerns have been raised by certain tourism companies that the levy could discourage people from visiting Edinburgh.
'It remains a very contentious matter'
Marc Crothall
The Scottish Tourism Alliance's chief executive, Marc Crothall, described it as a "very contentious matter."
Edinburgh Aligns with European Tourist Hubs
It's anticipated that the tax will generate as much as £50 million annually by 2029, which will be put towards enhancing the city.
Similar to popular tourist destinations like Amsterdam and Berlin, Edinburgh plans to implement a new policy affecting visitors.
Council leader Cammy Day holds that the tax will not deter tourists from visiting, but will instead be used to support various city development initiatives.
In light of its expanded authority from the Scottish Government, the Highland Council is exploring the implementation of a tourist tax in the region it governs.
This particular region welcomes a substantial influx of tourists every year, exceeding six million individuals annually, including both day-tripping enthusiasts and cruise ship passengers who play a vital role in supporting the regional economy.
In an effort to ensure that all stakeholders are heard, the Highland Council has announced plans to initiate a detailed three-month public consultation process later this year, during which time they will solicit feedback from residents on the potential introduction of a tourist levy.