Thursday October 2nd 2025
Photo by Adam Wilson
Written by Midlothian View Reporter, Liam Eunson
Yesterday marked a significant day in the development of the new Edinburgh visitor levy, potentially changing the Edinburghs hotel and accommodation industry for 2026.
From yesterday (1 October 2025), any Edinburgh accommodation booked for a stay after the 24th of July 2026 will have a 5% visitor levy added onto the final costs of paid, overnight stays.
This comes at a significant time for Edinburgh’s tourist market, following in the footsteps of many major European cities.
The levy will only be charged on the first 5 nights of stay and will be charged at the same rate every day of the year. It will be added for nights both paid in part or full, and will be introduced to all forms of stay, including home letting and vehicles / boats.
Being added to all forms of accommodation, this will also include student lets but only when let to visitors and non-Edinburgh students.
The City of Edinburgh Council Leader, Councillor Jane Meagher, said:
“The Edinburgh visitor levy is a unique opportunity to sustain and enhance our capital city’s position as one of the most beautiful and enjoyable destinations in the world.
“With the potential to raise an additional £45-50 million a year by 2028/29, the levy could see the single biggest injection of new funding this side of the millennium.
“This funding will help us manage tourism sustainably, boost projects that benefit residents and protect the things that make our city such a great place to visit – and live in – all year round.”
With estimated income being around £50 million, this funding will assist Edinburgh’s tourism funding but may also hinder visitor numbers into the city, having effects on hospitality businesses.
Beginning on the 24th of July next year, this is prior to major capital city events such as the Edinburgh Festival Fringe.
Garry Clark, Development Manager for the Federation of Small Buisnesses, explained to the Midlothian View yesterday:
“Today is an important day for the future of the Visitor Levy. The timing hasn’t been ideal for local businesses as it is just 6 weeks since the Council published its bare-bones information for local businesses and just 6 days since Visit Scotland published its more detailed national guidance for businesses.
“Businesses have had very little time to prepare effectively. Complex booking arrangements, which can be both direct and through third parties like the booking websites, need to be unpacked and any levy fees accounted for, even though the council’s payment platform is still under development, with local businesses unlikely to receive any training on it before next year’s busy Easter period.”
With many successful visitor levys in other European city’s, there are concerns with the effects it may have on local Edinburgh businesses, including accommodation and other forms of hospitality.
The introduced tax may hinder visitors to the city in busy times, such as the Fringe, as Edinburgh accommodation costs drastically increase in the capital during popular times of the. So, this additional 5% nighgtly costs may significantly increase the final price of overnight stays.
Garry Clark ensured that the Federation of Small Businesses is working with members to pass on information that they believe the council was lacking in the initial publication, with a sense amongst Edinburgh businesses that the council has failed in the timings of the levy.
Garry explained:
“FSB is working with members to pass on any information as it becomes available and we hope that it can be made to work in a way that doesn’t penalise local businesses who are trying hard to comply with what is still an embryonic but complex tax.
“It would have been far better for the council to have paused its implementation until every business has the information it needs to successfully pioneer this new tax.”
Anyone who is staying in paid, overnight accommodation in Edinburgh needs to pay the levy, including tourists, and people staying for work or visiting the city for other reasons. Similar to many other levy’s, this also includes residnets of the country.
Yesterday’s development marked an important step in the development of the levy, affecting many bookings that are made after yesterday. With the council estimating a large financial income and promising it will be used to advance the city and the residents, it is unsure at this point how the 2026 levy will affect tourism in the capital.
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