Edinburgh introduces nightly tax on visitor accommodation

Aerial view of St. Giles Cathedral and Edinburgh old town with Scottish flag

The Scottish capital follows other major European cities such as Venice, Barcelona and Rome

Edinburgh is in the process of launching a Transient Visitor Levy (TVL), which will be introduced at hotels, bed and breakfasts and self-catered accommodation.

A 5% per night charge proposal was approved by city councillors on 22 August. The fee will be added to the cost of accommodation and to stays of up to seven consecutive nights.

Edinburgh will become the first city in Scotland to introduce a TVL, joining tourist hotspots such as Venice, Amsterdam, Berlin, Barcelona and Rome, which have implemented similar charges for overnight stays.

Last year, Manchester in northern England imposed a £1 per night charge on all accommodation bookings.

The Scottish levy is expected to bring in £45–£50 million in yearly funding, according to the City of Edinburgh Council. The authority says that the tax will help it to manage the impact of increased tourism while securing sustainable investment in the city.

Cammy Day, Council Leader, commented: “We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted. The visitor levy presents an innovative way of sustaining the sector and the city.”

Before full implementation of the levy there will be a public consultation spanning 12 weeks. During this time residents, visitors and businesses will have the opportunity to provide their feedback. Using the information gathered from the consultation, the final scheme is expected to be agreed upon by the start of 2025 with administration completed by mid-2026.

Business Standard recently compiled a list of destinations where tourists are now required to pay additional fees:

  • Austria
  • Belgium
  • Bhutan
  • Bulgaria
  • Caribbean Islands
  • Croatia
  • Czechia
  • France
  • Germany
  • Greece
  • Hungary
  • Iceland
  • Indonesia
  • Italy
  • Japan
  • Malaysia
  • New Zealand
  • The Netherlands
  • Portugal
  • Slovenia
  • Spain
  • Switzerland
  • Thailand
  • The US.

Authorities in Greece are also currently working on tourism-related policies including placing stricter regulations on short-term rentals.