Edinburgh is to introduce a new 5 per cent levy on all overnight accommodation for visitors staying in the Scottish capital starting from summer 2026.
City of Edinburgh Council first voted in favour of draft proposals for the new Visitor Levy scheme last summer and councillors formally approved the policy on Friday (24 January).
The levy will be applied on the cost of overnight accommodation in Edinburgh for stays from 24 July 2026 but the charge will be capped at a maximum of five consecutive nights - down from seven nights in the council's original proposal. It will cover most forms of visitor accommodation including hotels, guest houses and self-catering apartments in the city.
The council said that the levy would need to be applied to all advanced accommodation bookings made from 1 October 2025 for stays in Edinburgh on or after 24 July next year.
The council said that the levy was projected to raise up to £50 million per year, which will be used to improve the city’s infrastructure, including sustainability projects.
Council leader Jane Meagher added: “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.
“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.”
Neil Ellis, chair of the Edinburgh Hotels Association, said it welcomed the new levy for “its intended use of improving the experience of all visitors - local, national or international - through additional spending”.
Several major European cities such as Amsterdam, Venice, Barcelona and Rome have already introduced similar charges for overnight stays. Another UK city, Manchester, imposed a £1 per night charge on all accommodation bookings in 2023.