Edinburgh To Introduce Tourist Tax In A First For Scotland

Many popular destinations are gradually introducing a tourist tax to address the challenges of overtourism and Edinburgh is the first city in Scotland to introduce a new tax. Reportedly, the proposed levy has been in the works for some time. Moreover, the idea was first discussed back in 2019, and a measure was introduced in 2022. However, this month officials in Edinburgh have voted to introduce a new tourist tax.

Edinburgh to introduce tourist tax in a first for Scotland

After much past discussion, officials in Edinburgh have finally voted to introduce a new tourist tax, with a goal of raising around £50 million ($60 million). As noted by the BBC, Edinburgh will be the first in Scotland to implement the measure, which is officially dubbed the “transient visitor levy” or TVL.

The new tax is to be applied to hotels, bed and breakfasts, vacation rental properties and rooms, as well as those rented through platforms such as Airbnb.

Reportedly, the funds generated by the tourist tax will go towards covering the costs of improvements in Scotland’s capital. Moreover, local officials say the revenue the tax generates will improve the city’s tourism experience.

Cammy Day, the leader of the City of Edinburgh Council noted that this tax will “significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer.

Joining the global trend

Recently, several tourism hot spots have instituted similar taxes on tourists, including Bali, Barcelona, Greece, Paris and Venice. In the case of Venice, local authorities there claimed a huge success with the money generated by the tourist tax. A recent AP article revealed that the daytripper tourist tax had brought in some $2.2 million to the city.

Meanwhile, the introduction of the tax in Edinburgh does have its opponents. They are concerned that the fee could cause some tourists to skip the city altogether. Moreover, even more worry that the tax could impact the city’s appeal as a tourist destination.

According to John Lennon, Director of the Moffat Centre for Travel And Tourism Business Development at Glasgow Caledonian University said taxes were not necessarily a barrier to tourists visiting major cities, adding:

Visitor levies are not new, you see them in cities from New York to Amsterdam, to Manchester. In New York, for example, the levy is 15 percent, so Edinburgh in comparison at 5 percent looks quite small.

Those cities have not seen diminution of visitors due to the size of the levy. When we are seeing equivalents elsewhere, it is going to be marginal in terms of price disruption.

Reportedly, there will initially be a 12-week consultation period in Edinburgh, during which locals will be asked to give input on the exact amount of the tax. Currently, a figure of 5 percent is being discussed, with officials seeking input from locals on whether the tax should be higher or lower.

Meanwhile, some political leaders in Edinburgh suggest that the levy should be as high as 8 percent. Whatever amount the city settles on will be expected to be in place before the 2026 festival season in Scotland’s capital.