Renowned for its festivals, Edinburgh is a popular destination in the United Kingdom (Photo: Visit Scotland)
A proposal by the Welsh Government and the Edinburgh City Council, in Scotland, to impose a tourist tax on overnight visitors has sparked strong opposition from businesses and accommodation providers in both the regions of the United Kingdom.
The new levies have become possible with the recent amendment of laws in both Scotland and Wales that allow local councils to impose the levy, if they deem it necessary.
Recently, the Edinburgh City Council published a notice about the proposed levy, inviting feedback from the residents of the Scottish capital as well as the tourism stakeholders.
“The City of Edinburgh Council is thinking about introducing a visitor levy. We want to hear your views on our draft scheme. Councils in Scotland have new powers to introduce a visitor levy in their local area. These powers come from new laws in the Visitor Levy (Scotland) Act 2024,’’ reads the notice.
It says that cities around the world already have visitor levies. These cities include Amsterdam, Paris, Rome, Barcelona, New York, Kyoto and Dubai. If Edinburgh introduced such a levy, the money raised must be used towards facilities mainly used by or for visitors. “This could also help make local facilities and services better. Local culture, events and festivals could also benefit. We could also use the money to manage visitors and promote the city responsibly,” says the council.
The council adds that the visitor levy would be based on the cost of most types of paid overnight accommodation and that most people paying to stay for an overnight visit to Edinburgh will have to pay the levy.
It says that accommodation providers will collect the levy directly from visitors. They will pay the levy and report the collected sums to the Council every three months. According to the Edinburgh officials, the results of the public consultation will be discussed by councillors in early 2025 and will help decide whether the proposed scheme is changed, accepted or rejected.
It specifies that the levy would be imposed immediately even if the councillors decide to adopt the scheme. It says that upon acceptance, the levy will be charged on overnight stays to Edinburgh from or around July 24, 2026.
In a similar development, the Welsh government has also said that it plans to implement a visitor levy, aimed at generating additional revenue to support local infrastructure and services in popular tourist destinations. The proposed legislation, which was introduced to the the Welsh Parliament, Senedd, in November 2024, would empower local councils to impose a charge of GBP 1.25 (USD 1.54) per person per night for accommodations such as hotels, B&Bs, and self-catering units, with a reduced rate of GBP 0.75 for campsites and hostels. This initiative is slated for potential implementation by April 2027.
The Welsh government says that the primary objective of the levy is to provide local authorities with a sustainable funding source to reinvest in the public services and infrastructure that contribute to the success of tourism. This includes maintaining paths, cleaning beaches, supporting visitor centers, and promoting Welsh heritage.
However, according to reports, the proposal has elicited significant concern among local businesses and tourism operators, particularly in rural parts, where tourism is integral to the local economy. Critics argue that the additional cost could deter visitors, especially families, thereby adversely affecting income for local enterprises. For instance, a family of four could face an extra charge of approximately GBP 35 for a week’s stay, a factor that some business owners fear might discourage potential tourists.
An impact assessment commissioned by the Welsh Government suggests that the levy could result in the loss of approximately 730 jobs within the tourism sector and a reduction of GBP 47.5 million in economic activity. Despite these findings, the government maintains that the revenue generated would be reinvested to enhance the tourism experience, thereby ensuring the industry’s long-term sustainability.
Tourist levies have already been levied by some cities in the UK, notably, Manchester which has introduced a GBP 1 nightly charge for hotel stays, and cities like York and Cambridge are exploring comparable measures.
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