“It is anticipated that the levy will generate tens of millions of pounds a year to reinvest in the city’s infrastructure and sustainable tourism from summer 2026,” said the council.

Edinburgh would become the first place in the UK to launch such a city-wide levy — but many countries and cities around the world have visitor levies.

A formal 12-week public consultation seeking further input from Edinburgh area residents, visitors and businesses will commence in the coming weeks.

“This will inform the final scheme, which will be agreed in January 2025, allowing the 18-month implementation period to begin,” added the council.

“Edinburgh will become the first place in the UK to launch such a city-wide levy, which will drastically help the council manage the demands of increased tourism while ensuring sustainable investment in the visitor economy, public services, city maintenance, affordable housing and preserving the Capital’s cultural heritage.”

The council outlined key highlights of the draft visitor levy scheme include:

• Flat 5% charge per night: Visitors staying in accommodation will be required to pay a small, fixed fee per night of 5% of the accommodation cost, capped at seven consecutive nights.
• Wide range of accommodation: The levy will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts, but will exclude stays in campsites.
• Funding allocation: Revenue generated will be reinvested directly into initiatives that benefit residents and enhance visitor experiences, such as a ‘Well Kept City Fund’, affordable housing, city infrastructure, destination marketing and support for major events and festivals.
• Shaped with industry input: The council said the draft scheme has been shaped by many years of engagement with local businesses, residents, and tourism stakeholders including hoteliers.
• Expected to launch 2026: When the draft scheme is finalised, early in the new year, the council will begin working with partners to implement the Visitor Levy and make it live by Summer 2026.

Council leader Cammy Day said: “We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.

“It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer. By better supporting these services we can secure Edinburgh’s future as a top global destination.

“These proposals have been shaped by the views of residents, visitors and industry. We’re committed to making sure this is the best levy for Edinburgh and will begin our formal consultation as soon as the Scottish Government allow.

“This is a once in generation opportunity for Edinburgh and I look forward to the many benefits a visitor levy will bring, allowing us to reinvest tens of millions of pounds in sustaining and improving the things that make our city so special – for our visitors and residents who live here all year round.”

Neil Ellis, Chairman of the Edinburgh Hotels Association, said: “Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.

“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination.”

Christina Sinclair, Director of Edinburgh World Heritage, said: “The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the UNESCO-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced and promoted for future generations.”