A Popular European City Takes Steps Toward A Controversial Overnight Tourist Tax
Edinburgh, Scotland, is about to become the first city in the U.K. to introduce a tourist tax, and it's already stirring up plenty of debate. Starting July 2026, visitors staying in Edinburgh hotels, B&Bs, short-term rentals, and other paid accommodations will have to fork over an extra 5% per night, with a max charge of five nights. The accommodations will have to implement the charge and collect it on the city's behalf. The new law isn't just for foreigners, either. Whether it's a local planning a staycation or a traveler flying in from abroad, the tax applies across the board to anyone paying for accommodations in the city.
Local officials say this tax could pump an extra $56-62 million per year into Edinburgh's economy by 2028, with the money going toward public services, infrastructure, and affordable housing. Part of the plan includes using the extra funds to borrow around $87 million for new council housing to help ease Edinburgh's housing crisis. Edinburgh is a popular tourism destination, and that has led to housing becoming more expensive for residents.
Tourist taxes are an additional cost that many tourists don't prepare for on a trip to Europe, but they're more common than you think. Edinburgh is joining other European hotspots like Amsterdam and Berlin, which already have tourist taxes in place. The goal is to make sure the city and its residents benefit from the millions of visitors it welcomes every year.
How are people reacting to Edinburgh's tourist tax?
Like any new tax, Edinburgh's 5% overnight tourist charge is getting mixed reactions. City leaders point out that the funds will improve roads, parks, and public services while keeping Edinburgh as charming as ever. Businesses relying on tourism are split — some think it will help make the city more appealing in the long run, while others fear it could turn away travelers, hurting the industry that is still recovering from the effects of the COVID-19 pandemic.
A City of Edinburgh Council survey found that while more than half of locals support the move, 62% of visitors and 51% of businesses aren't on board, saying the tax should be either lowered or nixed completely. Critics worry the tax could make Edinburgh a less attractive destination, especially when travelers can visit other U.K. cities without the extra cost (although Edinburgh is one of the most entertaining cities in Europe, according to Rick Steves). Hotels and other accommodations are also not so sure how smoothly the tax will be implemented.
Still, in places like Barcelona and Rome, similar taxes haven't stopped tourists from coming in droves. If it works in those cities, could this new tax be a good move for Edinburgh? Only time will tell. In the meantime, to offset that extra cost and save what you can, plan your trip during the most budget-friendly seasons to visit Scotland.