Overview
- The 5% visitor levy took effect on July 24, 2026 and is charged on paid overnight stays for the first five nights with the fee added before VAT.
- The council estimates the charge could raise up to about £50 million a year to be reinvested in projects including affordable housing, a city-centre events policing unit and restoration of cultural buildings.
- Scottish Ballet has reported cancelled and shortened performances, saying the higher accommodation bills make touring to Edinburgh financially unsustainable and has asked for exemptions or relief.
- Council leader Jane Meagher says most recent price rises are driven by hotel market pressures beyond the council’s control and that levy income will stay in the city to improve services.
- Tourism firms warn higher costs could deter visitors and strain the visitor economy, and the levy may influence how other Scottish councils approach local visitor charges in future.