Edinburgh councillors agree Scotland’s first visitor levy charge at online meeting

Scotland’s first visitor levy has been approved by councillors in Edinburgh.

Members of the City of Edinburgh Council agreed the plans, which will bring in the charge on those staying in overnight accommodation throughout the area.

Visitors staying in the city will have to pay a 5 per cent fee per night, capped at seven nights – which is expected to raise up to £50 million a year for the local authority.

With a rare red weather warning in place during Storm Eowyn, councillors met virtually on Friday to discuss the proposals.

The Edinburgh skyline from Calton Hill | Getty Images/iStockphoto

Council leader Jane Meagher has previously described the levy as a “once-in-a-lifetime opportunity” to invest in the city.

Last year, the Scottish Parliament approved legislation giving councils the ability to introduce such a charge.

The 5 per cent charge will apply to those staying in hotels, bed and breakfasts, and other forms of accommodation, including holiday lets.

Tourists, people staying for work or visiting the city for other reasons will be charged, including Scottish residents.

Under the council’s plans, the levy will begin for stays taking place after July 24, 2026. There will now be a nine-month transition period, with bookings paid for in part or in full after October 1, 2025 being liable for the levy.

Friday’s full council meeting to discuss the proposal comes after it was backed last week by the authority’s policy and sustainability committee.

The Green and SNP groups on the city council urged the Labour-run administration to adopt a higher rate of the levy, proposing 7 per cent and 8 per cent respectively.

They argued more money is needed for housing in the city.

Conservative councillor Iain Whyte said his group does not back the levy, arguing it will damage tourism, but put forward proposals as they recognised it would happen anyway.

Ms Meagher said she had sought to accommodate the other parties’ interests in the administration’s motion, saying the council had listened to a “huge range of consultees”.

She said: “We have listened to many voices and come to a conclusion that is sustainable, consistent with legislation and and will enhance our city.

“I want to make this scheme a success.

“If there are reasons, outwith our control, the scheme is held up by other factors, I would like to point out that 4 per cent, 5 per cent, 7 per cent or 8 per cent of nothing is precisely nothing.”

The Federation of Small Businesses (FSB) warned councillors against a “headlong rush to be the first” to introduce the charge.

Garry Clark, FSB’s development manager for Edinburgh and the east of Scotland, said earlier: “Edinburgh’s small accommodation providers haven’t yet been given all the information necessary to plan for the potential impact on them.”

UK Hospitality Scotland welcomed that the implementation would only take place in October.

Executive director Leon Thompson said: “Not only has Edinburgh’s visitor levy been confirmed, but so too has the hit to the city’s competitiveness as a leading tourist destination.

“Our fundamental concern has always been that this levy will only serve to make visitors’ trips to Edinburgh more expensive, ultimately reducing their spending in the wider visitor economy and deterring future visits.

“It’s now the job of the council to use these funds wisely to improve the capital’s attractiveness as a visitor destination and mitigate the impact of the levy on businesses.”