Edinburgh plans to introduce a new tourist tax

A new tax proposal for Edinburgh

Councillors in Edinburgh, Scotland have approved of a proposed tourist tax that will apply to many forms of paid accommodation in the city, including hotels, hostels, B&Bs and short-term lets, excluding stays in campsites.

According to Travel News, the proposed levy will be 5% and residents will be asked whether this 5% charge tabled in the initial proposal should be higher or lower during a consultation period.

The suggested tax will be implemented from summer 2026, with the scheme estimated to raise up to £50m (around R1,1 billion) a year by 2028/29, if the final tax is 5%. 

This money will be put back into public services, city maintenance, affordable housing and preserving the capital’s cultural heritage, Travel News says.

Amsterdam’s taxes

Amsterdam also recently raised tourist tax, with tourists having to fork out a little more when staying overnight in the city.

According to Amsterdam Finance Chief, Hester van Buren, the overnight stays tourist tax would increase from 7% of the cost of accommodation plus €3 (R61,49) to 12,5% of the cost of accommodation. 

Cruise passenger taxes will also increase from €8 (R163,97) to €11 (R225,46) per person. 

Tourist taxes becoming more popular

Tourism taxes or tourist levies have shown an increase in the past year, with a number of countries announcing higher fees for tourists.

By what has brought this about?

Tourism Taxes by Design, a white paper by Group NAO and the Global Destination Sustainability Movement, explains that tourist taxes established in the past decade have aimed to regulate overtourism as well as regenerate popular tourist destinations.

According to this paper, the fees that are collected from tourists are used to fund the restoration of cultural heritage sites, help in the development of tourism infrastructure, nature preservation as well as even compensation for residents for different forms of pollution.