:
UK: Starting in July 2026, Edinburgh will begin charging hotel guests an extra five per cent for their stays – and other industries, such as short-term rentals (STRs) and cruise operators, are considering following suit.
The tax, announced last August, has inspired other tourist tax proposals across the UK, as the country looks to combat overtourism.
For Edinburgh, the announcement came during the city’s festival season, when nearly four million tourists arrived in a city of 500,000 permanent residents.
Half of Scotland’s local authorities are also planning to implement tourist taxes. Scotland’s push for a tourist tax is particularly challenging, explained Scottish Greens member of parliament Ross Greer, who said the country is often denied requests for national taxes as they require approval from the UK Treasury.
While Scotland awaits approval, Wales is due to vote on its own tourist tax this summer – and STRs could be included.
Hotels and STRs are not the only sectors that might be taxed. The cruise industry is also considering joining the scheme.
Scotland, which welcomed 1.2 million cruise passengers last year, is considering a tourist levy on one of its biggest industries.
Andy Harmer, managing director of Cruise Lines International Association UK & Ireland, said: “There are other destinations. What we don’t want is Scotland seen as an unattractive place to do cruise business.”
The Scottish government’s consultation on cruise ship levies runs through 30 May, with a decision expected shortly after.
Although there is broad recognition that tourism brings in revenue, there are also concerns about strained infrastructure and rising housing costs, which can affect residents’ quality of life.
For now, many locations are waiting to see the impact of Edinburgh’s bed tax before deciding how to proceed.
Highlights:
-
Edinburgh will introduce a five per cent tourist tax on hotel stays from July 2026.
-
Half of Scotland’s local authorities are planning similar tourist levies, subject to UK Treasury approval.
-
Wales is also expected to vote on tourist taxes this summer, potentially including STRs.
-
The short-term rental and cruise sectors are considering similar levies.
