Short let landlords in Edinburgh could soon have to charge guests a visitor levy under the first scheme of its kind in the UK.
The council has launched a consultation into the levy which would apply year-round to overnight stays from 24th July 2026 and includes self-catering accommodation, such as short-term lets.
Bournemouth, Christchurch and Poole was set to be the first council to introduce such a tax during the summer, but more than 40 hotels lodged an appeal with the government over how the ballot was conducted, and it has been put on hold. However, cities around the world such as Amsterdam, Paris and New York have visitor levies and Edinburgh Council says there is no evidence of a tourist tax reducing the number of overnight stays.
It explains that money raised would have to be put towards facilities mainly used by or for visitors to improve local facilities and services. Local culture, events and festivals could benefit, and money could also be used to manage visitors and promote the city responsibly.
A council report explains that a 5% levy capped at seven consecutive nights would raise up to £30-34 million for July 2026 to March 2027, £43-46 million in 2027/28, and £45-50 million in 2028/29.
Accommodation providers will be required to calculate and collect the levy from visitors staying on their premises and send them to the relevant local authority. It acknowledges that the initiative will raise additional operating costs for businesses, including card payments, taxes and commission rates.
The report adds: “Therefore, based on examples set internationally and a desire to maximise the data opportunity from the visitor levy, there is a strong case that a sum of 1.5% of the levy amounts collected is retained by the accommodation provider when they submit this return.”
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