Edinburgh is set to become the first city in the UK to implement a “tourist tax,” with a 5 per cent levy on overnight stays starting July 24, 2026. The City of Edinburgh Council approved the move in late January, aiming to generate around 50 million pound annually, reported the New York Post. The fee applies not just to hotels but also to self-catering apartments, aparthotels, bed and breakfasts, guest houses, hostels, student rentals (when used by visitors), boats that remain docked, short-term holiday lets, and caravan or camping sites. The charge will be applied per night, capped after five consecutive nights, and will be calculated before VAT. It will not cover extras like parking, meals, drinks, or transport.

While commonly called a “tourist tax,” the fee will apply to anyone staying in paid accommodation in Edinburgh, regardless of their reason for visiting. “Anyone who is staying in paid, overnight accommodation in Edinburgh need[s] to pay the levy,” the council clarified.

Council leader Jane Meagher hailed the decision as a “historic moment for Edinburgh.” She said, “Introducing this ground-breaking visitor levy means realising a once-in-a-lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round.”

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Not everyone is in favour of the tourist tax. Leon Thompson, executive director of UKHospitality Scotland, expressed concerns about the impact on the city’s tourism industry. “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,” he said in a statement.

Mr Thompson urged the council to ensure the funds are used wisely to increase Edinburgh’s appeal and minimise the tax’s effect on businesses.

Edinburgh, Scotland’s capital, is a city rich in history, culture, and scenic beauty. Edinburgh Castle, perched on Castle Rock, offers stunning views and a glimpse into Scotland’s royal past. A walk down The Royal Mile leads to landmarks like St Giles’ Cathedral and the Palace of Holyroodhouse, the monarch’s Scottish residence.

For art and history lovers, the National Museum of Scotland and the Scottish National Gallery are must-visits. Whisky enthusiasts can explore The Scotch Whisky Experience for tastings and insights into Scotland’s famous drink. Nature lovers can hike Arthur’s Seat for panoramic views or relax in Princes Street Gardens.