Short Lets to be hammered by nightly 5% ‘tourism tax’

Anyone renting an Airbnb or other short let property in Edinburgh from the summer of 2026 is likely to be hit with a nightly tourist tax.

Councillors in Edinburgh have voted for the introduction of such a tax, which they claim will raise up to £50m a year to be spent on the city.

The charge predictably covers hotels, B&Bs and self-catering accommodation, but controversially will also include rooms and properties let through websites such as Airbnb.

A 12-week consultation period will be launched in the autumn, with residents asked whether the 5% charge tabled in the initial proposal should be higher or lower.

Supporters say it will bring Edinburgh in line with some other cities such as Amsterdam, Berlin and New York; opponents say it will deter visitors and be difficult for some short let operators to administer.

Council leader Cammy Day has told the BBC: “People don’t come here to see the insides of hotel rooms, people come here to see the world heritage centre, the castle, the palace, the hills, the sea around the city, the amazing capital that we are. I can’t see a few pounds putting somebody off visiting the city. If you can afford to spend hundreds of pounds on a hotel room, you can afford a few pounds to support the city that you are visiting.”

A statement from the council admits that despite some claims about the expense of accommodation on Airbnb, the current art festivals in the city are attracting strong audience numbers with the Fringe alone listing a record 3,919 productions this year. 

“Bringing in £2.7 billion worth of visitor spend each year, creating and sustaining 37,000 jobs, our world-renowned festivals and wider year-round tourism industry is central to our local economy’s health” says the council statement. 

The council insists that a 5% levy is not excessive and states: “While supporting our tourism and hospitality sector, the benefits will be felt right across the capital. We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.”