Scotland's Visitor Levy legislation has come into force today, with Edinburgh becoming the first city in the UK to introduce a city-wide tourist tax on overnight accommodation.
The Visitor Levy (Scotland) Bill passed in May 2024, giving Scottish councils the power to introduce a charge on overnight stays in their area. Edinburgh moved first, formally agreeing its scheme in January 2025, and from today a 5% surcharge applies to hotels, B&Bs, short-term lets and other forms of paid tourist accommodation across the city, capped at the first five nights of any stay.
How the Charge Works
The levy applies to any stay taking place on or after today, provided the booking was made and paid for, in part or in full, on or after 1 October 2025. It is charged on the accommodation cost before VAT and does not apply to extras such as parking, meals, drinks or transport.
The timing means the tax is landing just as the city gears up for its summer festival season, with hundreds of thousands of visitors expected in Edinburgh over the coming weeks.
What the Money Will Be Spent On
The council estimates the levy could raise up to £50 million a year once fully established. Councillors have already agreed an initial set of investment programmes worth over £90 million over the next three years, organised under three themes: city operations and infrastructure, culture, heritage and events, and destination and visitor management.
Early spending commitments include a contribution toward Edinburgh's Festival Carnival and Mardi Gras events held over the past weekend, funding for festival city ambassadors to help visitors navigate the capital over the summer, and a new partnership with Police Scotland to create a City Centre Policing Unit aimed at increasing public safety while freeing up officers for frontline duties elsewhere in the city.
Reaction
Council leader Jane Meagher called the moment historic, saying it was the result of years of work and that she was proud for Edinburgh to be the first local authority in the UK to push ahead with a city-wide scheme. Julie Ashworth, who chairs the Edinburgh Visitor Levy Advisory Forum, said the council would continue consulting with residents and officers as the scheme beds in, adding that the aim was for Edinburgh to remain welcoming and successful while investing in its public spaces and heritage.
The Scottish Greens, who secured the power to introduce the levy during previous Scottish budget negotiations, have urged other councils across Scotland to follow Edinburgh's lead.
Not everyone is convinced the launch will run smoothly. The Association of Scotland's Self-Caterers has described today as "the real test" for the policy, with the launch coinciding with fresh figures showing Edinburgh is already one of the most expensive cities in Europe to visit, ranking third for the cost of a city break behind only Oslo and Copenhagen, according to the Post Office Travel Money City Costs Barometer 2026.
Other Councils Following Suit
Edinburgh is not expected to remain the only Scottish city with a visitor levy for long. Glasgow, Aberdeen and Stirling councils have all voted to introduce their own charges, and several other local authorities are consulting on similar schemes. Visitor levies of this kind are already well established in major tourist destinations internationally, including Paris, Barcelona and New York.