Skip to content

Edinburgh tourist tax to help tackle city's housing emergency

News imageGetty Images tourists walking down a colourfully-painted street in EdinburghGetty Images
Tourists will pay a 5% levy on overnight stays in Edinburgh

Money raised from Edinburgh's tourist tax will be used to tackle the city's housing emergency by building nearly 500 affordable homes, councillors have confirmed.

The visitor levy of 5% on overnight stays in hotels, bed and breakfasts and self-catering accommodation will take effect from 24 July 2026. About £50m is expected to be raised annually.

A £5m funding pot to build 472 homes between 2026/27 and 2028/29 was previously approved by councillors on the housing, homelessness and fair work committee.

It has now been officially rubber-stamped as part of the council's budget.

The £5m Housing Tourism Mitigation Fund plans include three new-build developments at Fountainbridge, Meadowbank and Coatfield Lane in Leith.

About 360 of the homes would be social-rented and about 110 would be mid-market rent homes.

Tourist tax revenue will also be spent on improving infrastructure and supporting the arts, the city council said.

The council said it had agreed a package of funding worth more than £90m over the next three years "to sustain and enhance Edinburgh's reputation as one of the most beautiful and enjoyable destinations in the world".

It includes:

  • £3m for public realm improvements in Hunter Square and £2m and £2.5m respectively towards transforming the city's key coastal visitor attractions at Cramond Foreshore and Portobello Promenade.
  • £5m to restore Leith Theatre and create a year-round culture and live music space.
  • £3m towards transforming the Old Royal High School into a world-class, accessible national centre for music.
  • £2.75m to create a Market Street Arts Hubs.
  • £3.85m to speed up the Setted Streets renewal programme and £3m for new and upgraded public toilets.

Council leader Jane Meagher said: "We're rightly proud to be the first local authority in the UK to push ahead with a city-wide visitor levy scheme, and I can't stress enough just how big an opportunity this is for our city, our residents and our visitors.

"These spend programmes will help us not only to sustain and enhance the things that make our city so special, but also to better manage the effects of tourism and major events on those who live here all year round."