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Thu, 23 Jul 2026

Thu, 23 Jul 2026 Tourist tax introduced in Edinburgh: How much is it and who pays?

The Scottish capital has become the first city in the country to introduce a charge for overnight stays.
Key Points
* The tourist tax is a 2% charge on hotel bookings, with an additional £1 per night for self-catering properties.
* The revenue generated from the tax will be used to fund initiatives such as affordable housing, community projects, and emergency services.
* Some business owners have expressed concerns about the tax, citing its potential impact on local businesses and residents who may not feel it is fair to pay an extra tax on top of their existing taxes.
* Edinburgh is not the first city in the UK to introduce a tourist tax, with Manchester and Liverpool already having implemented similar charges. Other Scottish cities such as Glasgow and Aberdeen are also planning to introduce tourist taxes. Concerns about the Tax
* Some business owners have expressed concerns that the lack of uniformity in collecting the tax could lead to confusion and difficulties for businesses.
* Others have pointed out that the tax may be unfair to local residents who come to visit the city but already pay their taxes elsewhere.
* The Association of Scotland's Self-Caterers has called for more guidance on how to collect and remit the tax. Background
* Edinburgh is facing a housing emergency, with high demand for accommodation and rising prices driving up rents and house prices.
* The city council has been looking for ways to raise revenue to fund initiatives that will help address the housing crisis.
* The tourist tax is seen as one way to generate additional income for the city while also encouraging tourists to visit Edinburgh. Overall, the introduction of the tourist tax in Edinburgh is a complex issue with both supporters and critics. While some see it as a necessary measure to raise revenue and fund local initiatives, others are concerned about its potential impact on businesses and residents.