Making tourism work for city’s residents - Foysol Choudhury
Edinburgh’s new Visitor Levy is a milestone for Scotland, but it is hardly an experiment. Across Europe, cities that welcome millions of guests each year ask visitors to make a modest contribution towards the upkeep of the places they enjoy visiting.
From Barcelona to Amsterdam, the visitor levy recognises that tourism brings huge opportunities, but also real pressure on housing, services and neighbourhoods.
As Edinburgh joins that group, for the policy to succeed, the expected income from it must add to, not slowly replace the core investment our communities rely on.
The scheme is expected to raise around £50 million annually and the City of Edinburgh Council has now outlined how the first £90m could be spent. The early proposals are encouraging.
Parks like Leith Links and Inverleith Park will see £4m invested each alongside other city parks that will benefit from the tax for repairs and more wardens. For local families, these spaces are football pitches, playgrounds and safe places to walk.
Plans also include funding for public toilets, enhanced street cleaning and graffiti removal, support for a dedicated city centre policing unit and investment to restore the Leith Theatre as a year-round cultural venue.
Crucially part of Edinburgh’s Visitor Levy is being directed towards tackling the city’s housing emergency. A £5m Housing and Tourism Mitigation Fund could help deliver around 472 affordable homes between 2026 and 2029, with the majority for social rent.
That it is hundreds of families moving from unsuitable temporary accommodation into secure homes, freeing up B&B rooms and restoring dignity to people who have waited too long.
Tourism has brought enormous benefits to Edinburgh, but it has also intensified pressure on housing. It is right that levy income helps local people stay in the communities they grew up in and work in. If residents are to support tourism’s future, they must see it easing the housing crisis, not deepening it.
At the same time, the levy must not become a substitute for proper core funding. Affordable housing, safe streets and clean public spaces are basic responsibilities of government.
The Scottish Government cannot reduce local authority budgets on the assumption that a tourist tax will quietly fill the gap. Councils still need a fair, sustainable settlement to tackle the city's issues.
As Parliament considers the Visitor Levy Amendment Bill at Stage 1 this week, we must scrutinise it carefully to ensure it gives councils real flexibility while providing certainty for tourism businesses.
Visitor Levy has the potential to help fund homes, strengthen neighbourhoods and show that Edinburgh’s global success can build local security.
Tourism should not price people out of their own city, it should help them stay. That is the promise of this levy and we must deliver it.