Edinburgh to Begin Charging Scotland’s First Tourist Tax

by Mia Taylor
Last updated: 3:40 PM ET, Thu August 29, 2024

The movement to implement tourist taxes is growing.

The city of Edinburgh is the latest to join the expanding trend of addressing the challenges brought about by tourism via a tourist tax.

According to news reports, the proposed levy has actually been in the works for quite some time. The idea was first floated back in 2019 and a measure was introduced in 2022. Fast forward to this month and it seems councillors in Edinburgh have voted for the introduction of a tourist tax with the goal of raising about 50 million pounds a year, or about $65.8 million, per BBC.

Edinburgh will be the first throughout Scotland to implement such a tax, which is officially called the transient visitor levy or TVL. The charge would be applied to hotels, B&Bs, self-catering accommodations and rooms and properties that are rented through such platforms as Airbnb.

The funds generated by the tax will be used to cover the costs of improvements in Scotland’s capital. In addition, local leaders say the revenue the tax generates will improve the tourism experience.

The leader of City of Edinburgh Council, Cammy Day, said the 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.”

A string of global hot spots such as Venice, Barcelona, Paris, Bali and Greece have instituted similar such taxes on tourists.

However, there are opponents in Edinburgh who worry that the fee will cause some tourists to skip the city altogether. Still others worry that it may impact Edinburgh’s appeal as a tourist destination, according to BBC.

There is to be a 12-week consultation period next in Edinburgh, during which residents will be asked to provide input on the exact amount of the levy. Currently proposed to be 5 percent, leaders in the city are seeking input on whether it should be higher or lower.

Some political leaders have suggested the levy should be as high as 8 percent. Whatever amount it turns out to be, the tax is expected to be in place prior to the 2026 festival season in Edinburgh.