Holidaymakers heading to Edinburgh may notice their hotel bill creeping up. As of October 1, the city has become the first Scottish local council to approve a tourist tax on overnight stays.

The new levy will take effect from July 24, 2026, adding 5% of the nightly room rate (capped at five nights). A three-night stay for two in a £200-per-night hotel, for example, will now cost an extra £30.

This move follows the Scottish Parliament’s 2024 decision to let its 32 local councils introduce a visitor levy at their discretion.

Who’s In, Who’s Out?

So far, Edinburgh, Glasgow, and Aberdeen are pressing ahead, while others are stepping back. Glasgow’s tax will arrive in January 2027 (raising up to £16m annually), and Aberdeen plans a 7% levy from April 2027.

Meanwhile, Argyll and Bute, Orkney, Shetland, the Western Isles, and South Ayrshire have rejected the idea after public consultations. Resistance often comes from worries about the impact on fragile local economies, additional admin for hotels, and fears of deterring domestic tourists.

A European Standard

Tourist taxes are hardly new. Across Europe, they’re the rule rather than the exception:

• Amsterdam imposes the highest rate in Europe, at 12.5% per night.
• Italy charges between €1–€5.
• France’s taxe de séjour ranges from €0.65 to €15.60.
• Barcelona uses a sliding scale (€6–€11), funding exhibitions, festivals, and sports events.

Crucially, visitors rarely notice the charge—it’s simply added to the bill at checkout. And despite grumbling, visitor numbers across these destinations keep climbing.

The Case For and Against

Supporters argue that levies are modest contributions with clear benefits: cleaner streets, better public spaces, upgraded transport, and cultural programming. Edinburgh Council leader Jane Meagher expects £50m annually to reinvest in the city.

But opponents—like UK Hospitality Scotland—see it as an extra burden on already squeezed businesses and a potential deterrent for domestic travellers. Hoteliers warn of administrative headaches, with booking engines and online travel agents needing adjustments, and the risk of businesses footing the bill if guests refuse to pay.

Scotland in the Global Picture

Edinburgh’s move is part of a global shift toward visitor contributions. In destinations from New Zealand to Japan, levies are seen as a way to manage the pressures of mass tourism while ensuring visitors pay into the places they benefit from.

What stands out is Scotland’s cautious, piecemeal rollout compared with bold adopters like Amsterdam or Venice (the latter introducing a day-tripper fee). This fragmented approach could leave Scotland with a patchwork system, varying by council, which risks confusing both visitors and operators.

Yet, the trend is clear: with rising overtourism concerns, strained city budgets, and a push for more sustainable models, tourist levies are no longer just a European quirk—they’re becoming the global norm. According to the UNWTO (2023), over 70 destinations worldwide now impose some form of visitor tax, and more are in consultation phases.

Scotland’s challenge will be ensuring its levy doesn’t dampen domestic demand—while still making good on the promise of reinvesting revenues in a way tourists can actually see and feel. If managed well, Edinburgh could mirror cities like Barcelona, where taxes have directly funded cultural growth and infrastructure. If mishandled, it risks becoming yet another political football in local elections.