Edinburgh became the first Scottish city to introduce a tourist tax on Thursday, levying a 5% charge on overnight stays in hotels, bed and breakfasts and self-catering accommodation. The levy is capped at five nights and exempts homeless people, domestic violence victims and asylum seekers.
The city expects the measure to generate up to 50 million pounds annually by the 2028/29 financial year, with revenue earmarked for housing, cultural initiatives, policing, green spaces and improved street lighting. Glasgow and Aberdeen are set to follow with similar levies in 2027.
The tax takes effect just weeks before the Festival Fringe draws more than two million visitors in August. Scottish Ballet has urged authorities to grant exemptions for national performing arts ensembles, noting its Edinburgh accommodation costs surged 72% between 2019 and 2025. A city councillor attributed rising costs to hotel pricing rather than the new levy.