edinburgh tourism tax

Plans for Edinburgh tourist tax unveiled by Nicola Sturgeon in UK first

Nicola Sturgeon has unveiled plans that would see Edinburgh becoming the first city in the UK to introduce a visitor levy to pay for "tourism and related infrastructure".

• 20:23, 6 SEP 2022
• Updated 14:36, 8 SEP 2022

Edinburgh may become the first city in the UK to launch a scheme that would see overnight visitors taxed.

Nicola Sturgeon announced on Tuesday that the Scottish Government will introduce a Bill that would give councils the power to enact tourist tax schemes. According to the City of Edinburgh Council, it could generate £15 million each year.

The proposed tax would see tourists charged an additional accommodation fee, with the money being used to pay for infrastructure and services. Other cities such as Barcelona already have such a scheme in place.

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The First Minister said: “We will introduce a Local Visitor Levy Bill to give local authorities additional fiscal flexibility. This will help councils, if they so choose, to fund activities related to tourism and related infrastructure.”

City of Edinburgh Council leader Cammy Day added that the city was "very proud" to be among the world's most popular tourist destinations. However, he added that the success “comes at a cost”.

He stated: "We believe it’s right to ask visitors to make a small contribution to help us sustain and improve our tourism offer while managing its impact.

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“We’ve been building the case for Edinburgh to become the first city in the UK to introduce such a levy, consistently and repeatedly making the case to Scottish ministers without success – until now.

"Ultimately the income this generates will help us continue to invest in and manage the success of tourism on our city, making sure we continue to offer one of the most enviable and enjoyable visitor experiences in the world – while bringing new and additional benefits to our residents who live and work here all year round.”

A consultation held in 2018 saw 85 per cent of respondents in the city support the scheme, including a large number of accommodation providers and businesses.

What do you think about a tourist tax scheme? Let us know in the comments.

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About proposals for a visitor levy

A visitor levy for edinburgh, scotland's plan to introduce a levy.

The  Visitor Levy (Scotland) Bill  was passed in the Scottish Parliament in May 2024. The legislation allows councils in Scotland to tax overnight accommodation if they wish to do so.

The Bill sets out some requirements for the levy, which include:

• The levy must be a percentage of the cost of an overnight stay in some types of overnight accommodation
• Before a levy can be introduced, the local authority must consult with local communities, businesses and tourist organisations
• Revenue generated by the levy must be used to develop, support or sustain local facilities and services substantially used by business and leisure visitors.

Deciding to have a visitor levy in Edinburgh

We are planning to introduce a visitor levy in Edinburgh, pending public consultation and elected member approval. The earliest that we could introduce a levy is mid-2026, based on the mandatory 18-month implementation period set out in the Bill. This implementation period can only start after public consultation has been completed.

Ahead of the Bill being passed, we are exploring options regarding:

• when the levy will be applied and to whom
• what percentage the levy charge will be
• how the levy might be invested to benefit the city, residents and visitors.

We continue to ask for views from city partners as well as expert groups like tourism organisations.

Scottish Government information

• Local visitor levy

Progress update and draft proposals report

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Tourism and events

Local visitor levy.

We are proposing to give councils powers to introduce a visitor levy, sometimes known as a 'tourism tax'. This will generate funds to invest in local facilities and services, helping to attract more visitors. 

The Visitor Levy (Scotland) Bill was introduced to the Scottish Parliament in May 2023. 

If passed, the legislation will give local councils the ability to add a tax to overnight accommodation if they wish to do so. This will be based on a percentage of the cost, with the rate set by individual councils. 

Councils could choose to apply the levy in all or part of their area - but will have to consult with local communities, businesses and tourist organisations before introducing a levy. 

Funds raised must be reinvested in local facilities and services used by visitors.

The plans are part of our commitment to devolve more powers to local councils.

Impact assessment 

The bill is accompanied by the following impact assessments: 

• business and regulatory impact assessment (Visitor Levy Scotland Bill)
• child rights and wellbeing impact assessment (Visitor Levy Scotland Bill)
• data protection impact assessment (Visitor Levy Scotland Bill)  
• equality impact assessment (Visitor Levy Scotland Bill)  
• Fairer Scotland duty summary (Visitor Levy Scotland Bill)  
• island communities impact assessment (Visitor Levy Scotland Bill)  

Visitor levy expert group 

An expert group, led by national tourism agency VisitScotland, is being set up to consider how a visitor levy could best work. The group will bring together representatives from the tourist industry, local government and other partners. It will develop national guidance and best practice for councils in using the new discretionary power, if the legislation is passed.  

How we have consulted 

The visitor levy proposals follow a national discussion and public consultation.  

Find out more: 

• Tourism tax: messages from the national discussion  - provides a high-level summary and includes anonymised summaries from each roundtable discussion 
• Tourism tax: evidence from the national discussion  - is a collection of unedited evidence submitted by stakeholders 
• Tourism tax: consultation analysis

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Edinburgh politicians welcome introduction of tourist tax

Tommy sheppard mp and snp council group leader, adam mcvey, have welcomed the publication of a bill which would give the city of edinburgh council the power to invest more in local tourism facilities and services through a levy on overnight stays..

Sheppard, whose Edinburgh East constituency also encompasses some of the City’s most popular tourist attractions like Edinburgh Castle and the Royal Mile, has committed to working with the local tourism industry, city councillors and MSP colleagues to “get the bill over the line.”

If approved by The Scottish Parliament, the Visitor Levy (Scotland) Bill will grant councils the authority to impose a levy on overnight accommodation, calculated as a percentage of the accommodation cost.

All funds generated from this levy would be reinvested locally, primarily in facilities and services used by tourists. This reinvested aims to enhance the tourist experience and bring significant benefits to local communities and their economies.

The council announced some time ago, during the last SNP-Labour administration, the proposal to fix a nightly charge at £2 for the first week of a stay, to be added to the price of any room with a cap on seven nights. It is estimated the scheme would bring in between £5 million and £35 million a year, depending on the final model agreed.

Mr Sheppard said: “It’s great to see The Scottish Government move forward with proposals to give councils the power to apply a visitor levy. It’s particularly welcome here in Edinburgh – a city which proudly welcomes over welcomes over 4 million visitors annually.

“This isn’t a question of fleecing tourists as some suggest, but a rather a matter of fairness. It cost money to keep our streets clean, well-lit, and safe. It costs to support our festivals, to keep our museums and public spaces world class.

“Residents pay for this through their council tax and yet many living outside the city centre don’t get a lot of benefit from it. It’s only fair that people who come here for a few days or weeks and take advantage of these facilities make a modest contribution too. That’s what this legislation will give Edinburgh City Council the power to do.

“I look forward to working with the local tourism industry, Edinburgh Councillors and my MSP colleagues to get this Bill over the line.”

SNP group leader Cllr Adam McVey, added: “Edinburgh has well-developed plans for a tourist tax, and I’m delighted this legislation has moved to the next stage to make these plans a reality.

“More than 90% of residents backed plans for this levy in the City when asked and the engagement from industry means the Edinburgh plan is well thought out and deliverable for businesses too.

“This has been a key ask of local government for the last 6 years and it’s fantastic that the SNP Government have responded so positively through this process to further empower Councils on this policy as well as progressing many others.”

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Edinburgh tourist tax: Scottish councils call on MSPs to allow earlier start for Visitor Levy

C ouncil leaders are calling on the Scottish Parliament to accelerate plans to give them the power to introduce a charge on overnight stays.

MSPs will this week pass legislation giving local authorities the ability to set a t ourist tax - or Visitor Levy - for those spending the night in hotels and other forms of accommodation. But councils said the 18-month waiting time before they can apply the charge is "disproportionate and excessive".

Local government umbrella body Cosla has lobbied MSPs on the issue ahead of Tuesday's final debate and vote on the Visitor Levy (Scotland) Bill.

Leaders of  Edinburgh City Council  have already said they want to be the first in Scotland  to introduce the levy. But Cosla said as it stands, no local authority will be able to apply a visitor levy before 2026 because they will have to wait 18 months after consulting on plans for a levy before being able to introduce it.

In a briefing paper, Cosla said: "This is clearly both disproportionate and excessive. After years of successive cuts to areas such as infrastructure, culture and leisure, the services and facilities crucial to both our communities and local visitor economies require the additional revenue which would be reinvested from a visitor levy scheme now."

Councils are now urging MSPs to back amendments to the Bill which would reduce the lead-in time, saying this will "ensure that our communities and visitor economies see crucial investment as soon as possible".

The legislation will allow councils to charge a visitor levy on those staying in a range of accommodation, including hotels, hostels, bed and breakfasts, self-catering properties, campsites and caravan parks.

Councils are also keen to see it expanded to cover those staying on cruise ships, arguing they "access the same services and facilities" as those using other forms of accommodation.

Cosla said its officials have been "working closely" with the Scottish Government to address this, with the local government body urging MSPs to back amendments to the Bill which would introduce cruise ship levy powers.

In addition, it said MSPs should oppose amendments to the Bill which would allow ministers to set a national cap on how many nights a levy could be applied for, with Cosla saying this "unnecessary national direction" would "constrain local flexibility" for councils.

It also said the issue of exemptions from the Bill should "remain a key local decision" to be made by councils in consultation with residents and businesses. As a result, Cosla called on MSPs to oppose amendments to Bill that would introduce national exemptions.

A Scottish Government spokesman said: "A visitor levy will be a force for good, giving councils the opportunity to reinvest the money they raise in facilities and services largely used by visitors. Enabling councils to charge a levy in their area if they wish would also be a significant step towards empowering local government and strengthening local democracy.

"The Scottish Government has been engaging with the tourism industry and other stakeholders on the proposed levy for a number of years and continues to work with them as part of an expert advisory group.

"A lead-in time provides the space for businesses to put in place systems and train staff so they can collect the levy and remit it to the local authority. This has been a key ask from the accommodation industry and was supported by 16 of the 18 local authorities that responded.

"The Scottish Government is open to giving local authorities the power to create a cruise ship levy. We are continuing to examine how best to take this forward working in partnership with Cosla and local government."

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