Edinburgh is set to implement Scotland's first ever visitor charge, introducing a 5% tax on overnight hotel stays.
This groundbreaking move aims to generate up to £50 million annually, with the funds assigned for reinvestment in the city’s infrastructure and services.
Councillors made the decision during a virtual meeting, which confirmed that the levy will apply to stays in hotels, bed and breakfasts, self-catering accommodations, and short-term rentals like Airbnbs.
Businesses are required to apply this tax to any advance bookings made from October 1st, 2025, for stays beginning on or after July 24th, 2026.
The start of the transition period for the tax has been postponed; it was initially set to commence in May.
Manchester made headlines in 2023 by becoming the first city in the UK to impose a £1 visitor charge on overnight stays in city-centre accommodations.
Additionally, the Welsh government is contemplating a similar initiative, planning to introduce a £1.25 per night tourism charge starting in 2027.
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