EDINBURGH is set to introduce a tourist tax after the city's council approved a draft plan on Thursday.
Common in continental Europe travel destinations like Barcelona, Amsterdam and Venice, such taxes allow cities to financially benefit from tourism.
But how will it work in Edinburgh?
Edinburgh tourist tax explained
The tourist tax will impact visitors to Edinburgh who stay in hotels, bed and breakfasts and properties let out through platforms like Airbnb.
A levy on accommodation will be charged, capping out after seven consecutive nights.
The council's draft plan proposes that this levy be 5% per night, but a public consultation period will ask respondents if this should be higher or lower.
City of Edinburgh Council aims to have a final plan agreed by January 2025, after which an 18-month implementation period is expected to begin.
This means the tourist tax would be in place from summer 2026.
The council expects the scheme to draw in £50 million per year by 2028/29.
Manchester introduced the UK's first visitor tax in 2023, drawing in around £2.8m for the city in its first year of operation.
Profits from Edinburgh's scheme will be reinvested into providing services in the city, both for tourists and for locals.
A "Well Kept City Fund" will be introduced off the back of the new tax, as well as investment in infrastructure.
Edinburgh's festivals and events sectors will also benefit from the funding, as well the city's tourism industry through investment in marketing.
Some £5m from the scheme will be put toward council and affordable housing.
