Canadians must soon pay more to vacation in popular U.K. city
A vacation in one of the U.K.’s most popular cities is about to cost Canadians more once a new tax kicks in this year.
Edinburgh, one of the top tourist destinations in the U.K., is set to charge a new levy or tax for certain types of overnight accommodations. Once implemented, it will be the first mandatory scheme of its kind in the U.K., according to The Guardian.
The aim is to “sustain Edinburgh’s status as one of the world’s greatest cultural and heritage cities and to ensure that the impacts of a successful visitor economy are managed effectively.”
Money raised from the tax will go towards improving public services and infrastructure in Scotland’s capital city. It will also help improve efforts to promote responsible and sustainable tourism.
“Anyone who is staying in paid, overnight accommodation in Edinburgh needs to pay the levy,” states the City of Edinburgh Council. “This includes tourists, people staying for work, or visiting the city for other reasons. U.K. and Scottish residents are included.”
How much will visitors have to pay?
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The visitor levy is a five per cent tax that will be added to the cost of overnight accommodations in the city.
“It will be charged before VAT and will not be charged on extras like parking, meals, drinks, or transport, which will only be charged on the first five nights’ stay,” reads the government’s site.
The five per cent rate will remain in effect daily and apply to stays starting July 24. However, the fee won’t apply to stays on or after that date if they were booked (fully or partially paid for) before Oct. 1, 2025.
The initiative is expected to raise £45 million (C$84 million) to £50 million (C$93 million) a year by 2028 to 2029.
How will visitors pay the visitor levy?
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The five per cent levy will be automatically added to the cost of your accommodation.
It will apply to paid overnight accommodation, including hotels, self-catering apartments, aparthotels, and bed and breakfasts. It will also apply to guest houses, hostels, short-term rentals, caravan or camp sites, vehicles or boats that stay in one place, and student accommodation being used by visitors or non-Edinburgh students.
In 2024, a total of 145,425 Canadians visited Scotland, according to the national tourism organization Visit Scotland. On average, Canadian tourists spent an average of eight nights per visit and spent a total of £135 million (C$252 million) in 2024.
Travel is undoubtedly getting more expensive.
This year, Hawaii implemented the “green fee” tax increase that applies to hotels and short-term rentals. Starting March 1, Kyoto will increase its accommodation tax, with the amount depending on the nightly rate. Baja California Sur in Mexico has also increased the mandatory Embrace It Tax, which tourists must pay before entering the state.