Edinburgh tourist tax and living costs temper Scotland tourism gains
Scotland’s tourism industry is recording stronger growth than the rest of Britain, with flight bookings to Scottish airports rising 15% in June and July, while bookings to London and other English destinations declined in recent months, according to VisitBritain figures cited by The Guardian.
Tourism chiefs credit screen portrayals of dashing Highland warriors and the Tartan Army’s kilted football fans with more to do with Scotland’s allure than hopes of cooler weather farther north, while also citing expanded direct flights from North America and the Edinburgh Festival Fringe.
The shift comes against a backdrop of weakening tourism across much of Europe, where war, EU entry-exit delays, climate disruption and economic pressures have eroded holiday plans. “For the tourist industry, 2026 has been a rocky year,” The Guardian reported. More Britons have chosen to holiday at home rather than face the border confusion and delays associated with the EU’s entry-exit system, contributing to the relative strength of UK destinations.
Heat gripping much of continental Europe is one likely contributor to Scotland’s gains. Vicki Miller, the chief executive of VisitScotland, said conclusive data linking the heat to changing tourist habits is not yet available, but demand from southern Europe has strengthened. “We’ve seen this year strong demand from Europe including Spain and Italy, which is potentially the climate impact,” Miller said. Marc Crothall, the chief executive of the Scottish Tourism Alliance, said the industry hopes to see more European visitors given the climate conditions.
Long-term investment in direct flights from North America has come to fruition, bolstering the traditional US-led foreign tourist base, Miller said. Some 100,000 additional seats annually have been added from the United States alone.
The Edinburgh Festival Fringe is amplifying the effect. Crothall said festival sales are up 30% this year. “Edinburgh is jumping, which is great. And that’s a massive draw for international visitors,” he said. Princes Street this week was crowded with tourists gathered around bagpipers and approached by fringe promoters, according to The Guardian.
Screen and sporting culture are pulling visitors in beyond the festival. Miller said 36% to 37% of international visitors are inspired by film or television. Zanet Garcia, visiting Edinburgh from Mexico City on her second day in the country, said she was drawn by Scottish mythology as depicted in Harry Potter and Outlander. She had visited related locations, taken in the Johnnie Walker Experience, and held tickets to the military tattoo — though, she told The Guardian, “I don’t even drink whisky.”
Online searches spiked on the back of the reality television series The Traitors, Miller said, although Ardross Castle, the main filming location for the UK and US versions of the show, is not open to visitors. Castles featured in Outlander, which has run for years in the United States and parts of Europe, have also become major draws. Miller said visitors’ memories extend further back, noting continued interest in older productions such as Braveheart and Local Hero.
Sport has delivered a separate lift. Scotland fans, known as the Tartan Army, were voted the best supporters at Euro 2024 in Germany, prompting increased interest from that country. “A mixture of friendliness, banter, and donations to local charities — they capture hearts, they’ve been fantastic ambassadors,” Miller said. At this year’s World Cup, when Scotland played in the United States, VisitScotland “painted Boston tartan” to capitalise, prompting local online searches for Scottish holidays to double.
The bulk of visitors are still from the United Kingdom, but overseas visitors tend to stay longer and spend more. An average overseas visitor to Scotland spent just over £900 in a week in 2024, compared with just over £300 in three nights for a British holidaymaker, according to industry data cited by The Guardian. The biggest jump this year has been in visitors touring by campervan rather than staying in hotels, according to the Moffat Centre for Travel and Tourism Research at Glasgow Caledonian University.
Despite the increased volume, Crothall said spending per head has fallen. He described the overall picture as “healthy but by no means booming.” Domestic tourists are more likely to pursue free museum visits and countryside walks than expensive meals, he said. “Instead of the three course meal, it’s the one. The 5% VAT and free travel helps, but it’s not magic,” Crothall said.
A 5% tourist levy on accommodation introduced in Edinburgh in July has added to industry pressure, according to tour operators on the ground. Dexter, an Edinburgh Bus Tours guide originally from Nevada who has worked the route for seven years, said business has weakened. “Tips have gone, big time. I used to be able to go on vacation just on my tips, now that’s not the case,” he said. The tourist tax “has hurt,” he added, “on top of the cost of living: people have got no money.”
Leon Thompson, the executive director of UKHospitality Scotland, agreed that the cost-of-living crisis is a constraint on domestic demand. Companies are also feeling the impact of business rates, national insurance contributions and VAT, he said, and are anxiously awaiting tourist levies to be introduced by other Scottish local authorities after Edinburgh. “Scotland will always be a popular destination, but we can’t be complacent,” Thompson said. “We can’t allow ourselves to be priced out of what is the global visitor market.”