Edinburgh is set to become Scotland’s first local authority to introduce a tourist tax on visitors to the city through a levy on accommodation costs.
The City of Edinburgh Council has said they are “days away from grasping a ‘once in a lifetime’ opportunity” that will “enhance and improve” the Scottish capital with councillors set to decide whether to back the new tax in a meeting later this month.
It follows similar schemes already implemented in other European cities such as Germany, Spain and Italy. It’s hoped that the levy could raise around £50m in funds per year from a 5% accommodation tax. If passed, the tax would begin in July 2026.
The news follows years of campaigning and engagement from the Council, including successfully advocating for a visitor levy to the Scottish Government to bring forward necessary powers.
Council Leader Jane Meagher said: “This is the moment we have been working towards – a once in a lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.
“With income of up to £50 million expected once it is established, the funding could provide Edinburgh with the single biggest injection of new funding this side of the millennium, providing a unique opportunity to further improve and protect all that makes Edinburgh the incredible destination it is today.
“We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents. I’m looking forward to working with Councillors to agree the scheme this month, which will allow further work to be carried out on the details of Edinburgh’s new levy.”
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