PLANS for a Visitor Levy in Edinburgh took another significant step forward yesterday (22 August), as councillors agreed key details of the draft scheme.
It is anticipated that the levy will generate tens of millions of pounds a year to reinvest in the city’s infrastructure and sustainable tourism from summer 2026.
A formal 12-week public consultation seeking further input from residents, visitors and businesses, will commence in the coming weeks. This will inform the final scheme, which will be agreed in January 2025, allowing the 18-month implementation period to begin.
Edinburgh will become the first place in the UK to launch such a city-wide levy, which will drastically help the Council manage the demands of increased tourism while ensuring sustainable investment in the visitor economy, public services, city maintenance, affordable housing and preserving the Capital’s cultural heritage.
Edinburgh Council backed the Lib Dem proposal to split Transient Visitor Levy income, after a fixed Housing investment, between: 55% city operations 35% culture and 10% destination management.
Key highlights of the draft visitor levy scheme include:
- Flat 5% charge per night: Visitors staying in accommodation will be required to pay a small, fixed fee per night of 5% of the accommodation cost, capped at seven consecutive nights.
- Wide range of accommodation: The levy will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts, but will exclude stays in campsites.
- Funding allocation: The levy is expected to raise £45-50 million a year by 2028/29. Revenue generated will be reinvested directly into initiatives that benefit residents and enhance visitor experiences, such as a ‘Well Kept City Fund’, affordable housing, city infrastructure, destination marketing and support for major events and festivals.
- Shaped with industry input: The draft scheme has been shaped by many years of engagement with local businesses, residents, and tourism stakeholders including hoteliers.
- Expected to launch 2026: When the draft scheme is finalised, early in the new year, the Council will begin working with partners to implement the Visitor Levy and make it live by Summer 2026.
Read the full report considered by Councillors and more information on the visitor levy scheme.
The decision is a victory for Edinburgh housing campaigners and trade unionists:
Council Leader, Cammy Day, said: “We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.
“It 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. By better supporting these services we can secure Edinburgh’s future as a top global destination.
“These proposals have been shaped by the views of residents, visitors and industry. We’re committed to making sure this is the best levy for Edinburgh and will begin our formal consultation as soon as the Scottish Government allow.
“This is a once in generation opportunity for Edinburgh and I look forward to the many benefits a visitor levy will bring, allowing us to reinvest tens of millions of pounds in sustaining and improving the things that make our city so special – for our visitors and residents who live here all year round.”
Neil Ellis, Chairman of the Edinburgh Hotels Association, said: “Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.
“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination.”
Christina Sinclair, Director of Edinburgh World Heritage, said: “The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the UNESCO-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced and promoted for future generations.
Charlie Cumming, Chief Executive of the Edinburgh & Lothians Greenspace Trust, said: “ELGT are in support of the funds raised from the proposed visitor levy to provide additional resource to make improvements to the city’s public spaces. It will be encouraging to see much needed funding for the upkeep of our much-valued greenspaces that provide many benefits to residents and visitors.
“The funding will also provide an opportunity to develop sustainable improvements to help mitigate against climate change and biodiversity loss.”
Roddy Smith, Chief Executive of Essential Edinburgh, said: “We welcome the next phase of the consultation by the City of Edinburgh Council.
“The key principle for the implementation of the visitor levy remains, that the money collected and then distributed should be additional to existing Council resources and not replacement funds and be used to finance projects that primarily support the tourism sector.
“We welcome the three potential funding pots which if used appropriately will have a significant impact on how our city looks, and how we can support our crucial heritage and arts/event sectors.
“Importantly, it will also invest in dedicated marketing and promotion, to ensure our successful tourism sector continues to grow sustainably. With an effective public and private partnership driving this work, we are excited that real progress can be made.
“Edinburgh must not take our tourism sector for granted, and if the finance generated through the levy goes towards supporting our tourism sector, then the city will see economic benefits for our business both directly and in the supply chain, employment growth and much needed large infrastructure projects being delivered. This will materially benefit all the residents in the city.
“Essential Edinburgh will continue our engagement with our members, the industry and Council to move forward towards the finalisation of the scheme.’
