Edinburgh tourist tax divides opinion as levy comes into force

Visitors to Edinburgh who book stays from next summer onwards are now charged a 5 per cent tax on their hotel bill.

The city council of the Scottish capital says the visitor levy "will be charged at the same rate every day of the year, indefinitely, for stays from 24 July 2026 onward”.

In addition to hotels, it applies to short-term lets such as Airbnb, bed-and-breakfast properties, hostels and camp sites.

The council says: “The scheme is designed to sustain Edinburgh's status as one of the world's greatest cultural and heritage cities. It will also make sure that the impacts of a successful visitor economy are managed effectively.”

The levy is on top of 20 per cent in VAT charged on accommodation.

The council says the levy should be applied before VAT is added, but the Balmoral Hotel shows a full £50 added to the £1,000 minimum room rate for 1 August – rather than the £41.67 if it were charged before VAT.

A snap social media poll with 1,185 responses found 69 per cent selecting “Too much, I’ll stay away”. The alternative, “Inevitable – I’ll pay”, was chosen by the remaining 31 per cent.

Comments from respondents were mixed. “I go abroad several times a year,” wrote Ian Miller. “A tourist, visitor or city tax is becoming almost universal for a hotel stay. I won't boycott Paris because of it, so why shun Edinburgh?”

Alex Wells wrote: “I want to say too much I'll stay away, but if I really want to go to said place, will just have to suck it up. Also, this will become the norm in any remotely touristy place anyway.”

The way in which the levy is calculated was questioned by a user named @TimboTiptoes, who wrote: “Why a % rather than a fixed amount? Or does someone staying in the Balmoral put more pressure on local services than someone in a Premier Inn?”

Rebecca Halpern said: “Leisure travel is really a luxury, discretionary thing to spend money on, so I doubt an extra 5% is actually going to put many people off in the grand scheme of all the costs a holiday involves.”

But Gary Robinson wrote: “I have already cancelled a weekend in Edinburgh THIS year because I’d need to have taken out a small mortgage for the two nights I intended to stay. Fife is going to be busy!”

Glasgow is set to introduce a tourist tax by 2027.