Edinburgh has introduced a new 5% tourist tax on overnight stays in hotels, bed and breakfasts, and self-catering accommodations, marking the first time the Scottish city has implemented such a levy. The tax, capped at five nights per visitor, is projected to generate around £50 million annually. City officials plan to reinvest these funds into cultural projects, new housing, and policing services to address the challenges posed by the influx of visitors during major festivals.
The arrival of this tax comes just ahead of Edinburgh’s renowned arts festivals, notably the Fringe Festival, which typically sees the city’s population nearly double with almost one million visitors. The move has garnered mixed responses among the cultural community and local stakeholders.
Many individual performers at the Fringe Festival expressed support for the levy, viewing it as a practical step toward offsetting the strain on the city during the busy festival season. Some see the 5% charge as a modest addition that does not significantly impact their overall costs, which are often driven by already high accommodation prices. Zoe Wohlfeld, a New York-based artist performing at the Fringe, described the tax as “not the make-or-break,” emphasizing that the primary financial barriers for performers and attendees have existed for some time due to expensive lodging. Wohlfeld and others highlighted that many artists typically use budget accommodation or share spaces to manage costs during the festival.
Edinburgh resident and UK artist collective co-director Deborah Pearson acknowledged the rising living expenses for artists but suggested that if the funds raised by the tax benefit the city, particularly its residents, it could be positive. Performers also noted the additional pressures festivals place on city services, citing issues including sanitation and safety. Instances such as the 2022 bin collection strikes, which coincided with the festival period and led to public frustration, were mentioned as examples of the challenges the city faces with large visitor numbers.
However, some organizations voiced concerns about the tax’s potential effects. Scottish Ballet, which faces high accommodation costs for its touring artists, announced plans to cancel some shows in Edinburgh scheduled for December, attributing this decision partly to the added financial burden created by the visitor levy. Steven Roth, the company’s executive director, described the economy of touring to Edinburgh as becoming “unsustainable” under the new tax regime.
Critics have also argued that the levy’s scope is limited, as it does not apply to day visitors or those staying outside the taxed accommodations. Some performers suggested that a broader approach might be necessary, given that day-trippers and local visitors can also contribute to the city’s wear and tear. There are calls to consider extending the tax or imposing it more widely to better capture the full impact of tourism on Edinburgh’s infrastructure.
As Edinburgh adapts to these new measures, stakeholders across the cultural sector continue to weigh the balance between supporting the city’s economy and maintaining affordability for artists and visitors alike. The tax’s longer-term effects on festival participation and local community wellbeing remain to be seen as the city hosts one of the world's largest arts events in the coming weeks.