This beautiful city in Scotland is set to introduce a tourist tax following on from other popular holiday hotspots in Europe, such as Barcelona. 

The new tourist tax in Edinburgh is set to become Scotland’s first, following the Scottish Government’s decision to empower local authorities to impose visitor charges.

Edinburgh’s city council’s plan for the ‘Transient Visitor Levy,’ is expected to be introduced in 2026.

This tax, capped at seven consecutive days, is projected to generate up to £50million annually.

The funds will be allocated to enhance the city’s infrastructure and services.

Despite the potential benefits, some tourism operators are worried that the tax might deter visitors from choosing Edinburgh as their destination.

“It remains a very contentious matter,” Marc Crothall, chief executive of the Scottish Tourism Alliance, told travel news site Skift.

“There are concerns around the future total price point to the customer and what impact this might have on future bookings, especially by our domestic visitors when there are already signs of decline in bookings from this market due to the UK cost of living crisis still biting.”

However, ultimately he doesn’t think it will put off people visiting the beautiful, historic city.

As well as Edingburgh, the Scottish Highlands are now also contemplating the introduction of a tourist tax.

Earlier this month, Edinburgh officials sanctioned a proposal to levy a five percent charge on the cost per room per night for guests staying at hotels, B&Bs, hostels, and holiday rentals, including Airbnbs.

From September, a 12-week public consultation will allow residents to weigh in on whether the five percent fee should be adjusted higher or lower.

Council leader Cammy Day has stated that 35 percent of the funds raised from the tourist tax will be allocated to the arts sector.

This move aligns Edinburgh with other major European tourist hubs, such as Amsterdam, which imposes a 12.5 percent tourist tax, and Berlin.