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A popular city in Britain will introduce a tax for tourists: how much you have to pay

Alina MilsentNews
Edinburgh. Source: Flickr, Saskia van de Nieuwenhof

Scotland's capital Edinburgh is on its way to introducing a tourist tax. The money collected will be invested in the development of the city. The fee will apply to all accommodation, including hotels, hostels and Airbnb properties.

This will be the UK's highest rate of tourist tax. More details about the innovations and how much extra tourists will have to pay, told the Mirror publication.

If introduced, the levy will be a 5% flat rate and the city could receive £50 million by 2029.

Tourism is very popular in Edinburgh. There are plenty of hotels in the city and even more offers from services like Airbnb, which entails a huge, very lucrative spike in demand for a short period in the summer.

Mike, a Living Rent Scotland campaigner, spoke to the Mirror about renting in the city. He said the cost of short-term rentals is skyrocketing. The city council has changed planning and licensing rules in recent years, so permission to grant a license to rent can be refused if, for example, a property has a communal garden.

Plans for the tourist tax will now enter a three-month consultation period, with input from local businesses, residents and visitors expected. A final scheme is then planned and is due to be agreed in January 2025 before the 18-month implementation period begins.

Edinburgh City Council leader Cammy Day commented to Sky News that the levy is an innovative way of supporting the city.

"It will significantly increase our ability to invest in Edinburgh, from keeping the city clean to responding to housing emergencies. This is how we can secure Edinburgh's future as a top global tourist destination," said Cammy Day.

In April 2023, Manchester was the first city in the UK to introduce a tourist tax called the City Visitor Charge. The tax is £1 plus VAT per room per night for guests staying in one of Manchester Housing Business' 74 hotels.

From April 2023 to April 2024 with the help of the tourist levy managed to collect almost 2.8 million pounds.

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