Where will a tourist tax be introduced in Scotland?

Where will a tourist tax be introduced in Scotland?

Scotland’s capital, Edinburgh, will be implementing a new tourist tax for visitors booking overnight stays starting next summer. This levy, amounting to 5%, will be added on top of the cost of accommodation for stays after 24 July 2026. With Edinburgh taking the lead in this decision, other popular destinations are also considering following suit. BBC Scotland News delves into which regions in Scotland are planning to introduce this charge and which areas have decided against it.

The tourist tax in Edinburgh will be applied to visitors from 1 October 2026 onwards, but those who have already booked their stay for next summer will be exempt from the levy. However, for new bookings, an additional 5% will be charged on the first five nights of the visitor’s stay. The revenue generated from this levy must be allocated towards enhancing facilities and services that are utilized by both business and leisure tourists. Ronald Little, the general manager of the Holyrood Marriott hotel, expressed his hope that the added funds will contribute to maintaining Edinburgh’s appeal as a top destination.

In addition to Edinburgh, Glasgow and Aberdeen have also agreed to introduce a visitor levy, while councils in Orkney and Shetland have decided against it. Glasgow’s overnight stay tax will mirror Edinburgh’s at 5%, with an estimated additional cost of £4.83 per night starting from January 2027. The revenue generated is expected to fund infrastructure upgrades and events, with an annual target of £16m. Aberdeen, on the other hand, plans to implement a 7% tourist tax, equating to an extra £4.90 per night, aimed at generating up to £6.8m annually for infrastructure projects.

However, some councils, particularly those in Scotland’s islands, have rejected the idea of a tourist tax, instead advocating for a point-of-entry levy charged at ports and airports. They are concerned about the administrative challenges and the impact on businesses in rural and island settings. Cruise ship passengers, a significant contributor to tourism in Scotland, would be subjected to this fee under a proposed cruise ship levy. The Scottish government is currently analyzing the feedback from consultations on this matter to determine the way forward.

Despite the introduction of the tourist tax in Edinburgh and other cities, certain groups will be exempt from paying this levy. These include tourists, individuals in Edinburgh for work, people without a permanent residence (such as homeless individuals, victims of domestic abuse, refugees, and asylum seekers), as well as those staying in vehicles or vessels primarily stationed in one place, like canal boats

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