Edinburgh Council approves Scotland’s first visitor levy

Edinburgh has approved Scotland's first-ever tourist tax, imposing a 5% levy on overnight accommodation, expected to generate £50 million annually for local improvements. This tax will apply to all types of lodging, including hotels and Airbnb rentals, and will take effect from July 24, 2026, with a transition period beginning for bookings made after October 1, 2025. Council leaders, including Jane Meagher, describe the levy as a significant investment opportunity for the city, aimed at funding infrastructure enhancements and affordable housing. However, concerns have been raised by the Conservative party and some business owners about the potential impact on tourism and the administrative burden it may create. The Green and SNP groups advocated for a higher levy, emphasizing the need for more funding for housing. The council has committed to using the raised funds for various improvements, including cleaner streets and better transport connections.