Although the name was born out of a 2010s-era internet joke about slapping misbehaving tourists with an extra fee, the “tourist tax” has, in the ensuing decade, become a presence in many cities and destinations seeing large numbers of foreign visitors.
It’s a bit of a catch-all term that refers both to the entry fee that some countries charge arrivals at the airport and the daily levy that many European cities add to the price of the nightly hotel or rental property rate.
The city of Amsterdam just raised the latter to 12.5% of the cost of the room, one of the highest rates in the world. Other cities with this type of tourist fee include Paris and Berlin, as well as most major cities in Italy and Spain. In the U.S., New York City and Los Angeles also charge a similar levy that is presented as a hotel occupancy and sales tax.
Edinburgh, Scotland starts charging travelers daily hotel tax
The latest city to begin charging a visitor levy is the Scottish capital of Edinburgh.
Voted in by the city’s councilors in 2025, the 5% addition to the cost of the nightly stay at any hotel, hostel, bed-and-breakfast, or property rental in the city went into effect on July 24 for all visitors booking accommodation in the city.
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The good news is that this tax is capped after five nights spent at the same location and does not rise during peak periods of the year, like in certain other European cities.
City councilors presented the fee as a way to redirect funds to keep the city clean, maintain infrastructure, and otherwise mitigate the effects of rising numbers of tourists amid limited resources to manage them.
The Edinburgh Grand
“The city’s popularity comes at a cost”: What to know about new Edinburgh city tax
Reports from city authorities show that the numbers of international visitors to Edinburgh increased by approximately 10% in the first part of 2026 compared to the previous year.
This is the first such tax implemented in Scotland and does not apply to Glasgow or other destinations in the country. When similar efforts first began in Wales, many tourism industry representatives there worried that it would drive visitors away from more rural destinations that rely on tourism.
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The hotel tax is also sometimes presented as a way to encourage tourists to go beyond major cities and come to other parts of the country.
“We know that the city’s popularity comes at a cost through the pressure it puts on our services and on the people who live and work here all year round,” Edinburgh Council Leader Jane Meagher said in a statement on the new levy.
“This small new contribution from overnight visitors will help improve the services and public spaces we all depend on, while better managing the effects of tourism and major events.”
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