Scotland accommodation sector faces new visitor levies and rising costs

Scotland's accommodation sector is preparing for significant regulatory and financial shifts. The City of Edinburgh Council will implement a 5% visitor levy on paid overnight stays starting July 24, 2026. This levy applies to the first five nights of a stay and is calculated before VAT, excluding breakfast allocations. A transitional arrangement allows stays booked and paid in full before October 1, 2025, to avoid the charge.

Beyond the new levy, the self-catering industry faces a squeeze from rising business costs and the 2026 non-domestic rates revaluation. Some property managers could see rate increases as high as 400%. Industry data from the Association of Scotland’s Self-Caterers indicates that 91% of operators view rising costs as a major challenge, while 43% expressed pessimism regarding the next 24 months. Experts suggest operators manage these pressures by reviewing commission costs from booking platforms.