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Edinburgh adds 5% visitor levy on overnight stays
The tax is expected to raise about £50 million a year and is capped at five nights per booking, with certain groups able to claim the charge back.
The City of Edinburgh is introducing a visitor levy that takes effect on Friday, adding a 5% charge on top of the original cost for people staying overnight in hotels, bed and breakfasts, and self-catering accommodation, according to BBC Business. The levy is designed to generate around £50 million annually and is intended to support local improvements, including new housing, cultural initiatives, and a broader police presence. Edinburgh officials also say the policy is timed for the city’s August festival season, when events including the Edinburgh International Festival, the Festival Fringe, and the Royal Military Tattoo run throughout the month. The 5% fee applies only to overnight stays and is capped at five nights, meaning longer bookings will not face the levy for every day. For example, BBC Business reports that a room priced at £100 per night for five nights, totaling £500, would cost £525 with the charge, while a £1,000 booking for 10 nights would be £1,025. Exemptions are available in specific circumstances, including for people presenting as homeless or in emergency accommodation, those at risk of domestic abuse or other violence, those temporarily rehoused due to poor living conditions, asylum seekers and refugees, and some recipients of disability benefits. BBC Business notes that exempt groups will pay initially but can claim the levy back later.