Tourist tax will aid city economy - Angus Robertson

Tourists on Edinburgh' Royal Mile at the Festival FringeTourists on Edinburgh' Royal Mile at the Festival Fringe
Tourists on Edinburgh' Royal Mile at the Festival Fringe
Edinburgh City Council has formally approved Scotland’s inaugural Visitor Levy scheme, set to launch on 24 July 2026.

The initiative will see a 5 per cent fee added to the cost of overnight accommodation in the city, capped at five consecutive nights. Businesses will begin applying the levy to advance bookings made from 1 October 2025 for stays on or after the scheme’s commencement. Once fully operational, the levy is expected to generate up to £50 million annually, funding vital local services and infrastructure.

The levy is seen as a tool to position Scotland as a leader in sustainable tourism, empowering councils to invest in local visitor facilities and activities. This collaborative approach reflects the “New Deal for Local Government and Business,” ensuring the levy is flexible and straightforward for businesses to implement.

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Funds raised through the levy will be reinvested exclusively in local projects that enhance the visitor experience and benefit communities. Possible initiatives include improving public spaces, promoting destinations and even supporting affordable housing projects. Importantly, councils must consult residents, businesses and tourism groups before implementing the levy and determining its use.

By reinvesting in facilities and services, the levy ensures both visitors and local communities can enjoy a thriving, sustainable Edinburgh.

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