How to Add Tourist Tax to Your Hotel Pricing

The tourist tax isn’t a rumour anymore. It’s real. It’s coming. And it’s not just Edinburgh. Wales is next. England’s heating up too.

For independent hoteliers across the UK, this isn’t just about passing on a few pounds to the guest. It’s about making your pricing, property management software, and team operations bulletproof.

This short guide gives you practical tips for adding tourist tax to your rate structure and communicating it clearly to guests.

What is a tourist levy?

A tourist levy (sometimes called a visitor tax or tourist tax) is a small, nightly fee added to the cost of accommodation in a city or region. While only a couple of pounds per night, the funds are typically directed to local Business Improvement Districts (BIDs) instead of the central government. This means the money raised is ring-fenced for local projects that directly benefit businesses, residents, and visitors, such as enhanced public spaces, destination marketing, and cultural programmes.

Many popular destinations across Europe already use tourist levies to make tourism more sustainable, and several English cities, including Manchester and Liverpool, have recently introduced similar “city visitor charges.”

Visitor Levy Rollouts: Key Dates for Edinburgh & Wales

Edinburgh has locked in its 5% visitor levy, starting from 24 July 2026. But it will apply to all stays booked on or after 1 October 2025, which means the operational changes need to be live well before that date.

Wales has also passed its own legislation, with per-night charges of £1.30 for most guests and £0.75 for hostels and campsites. Though the earliest rollout will be in 2027, the rules are already written.

Meanwhile, England hasn’t introduced a formal levy yet as it would require a change in law. However, momentum for a levy is driven by cities and regions eager to manage visitor impacts and generate new income for local services.

How to Prepare for Tourist Tax

1. Ensure your PMS can handle tourist levies

Even if the levy hasn’t hit your region yet, it’s time to get your tech stack ready. At a bare minimum, your hotel PMS should support visitor levies as a separate, itemised charge. That means it appears cleanly on invoices, folios, and booking confirmations.

This keeps guests informed and ensures your hotel is compliant with evolving legislation.

2. Train your team for confident guest communication

Don’t let the front desk flounder. Whether it’s face-to-face check-ins or your OTA listing descriptions, your team needs to explain the levy confidently and consistently.

Guests should walk away knowing this tax isn’t a hotel surcharge but a regional requirement. A little clarity goes a long way in avoiding tension at check-in.

3. Customise your rate plans for tourist tax

If you’re using RoomRaccoon, these levies can be applied per guest, per night, or per stay and are included in invoices and payment requests.

However, it’s important not to include levies as part of your room rate. Why? Because it masks your true revenue.

For example, if your rate is listed as €100 but that includes a €5 levy, you’re effectively only making €95 in actual revenue. This can distort performance metrics and lead to inaccurate reporting.

Test the setup now. Simulate charges. Review your invoices and folios. Get familiar with how it looks and functions. When peak season hits, you want smooth sailing.

4. Sweeten the deal with add-ons

Sure, guests might have to fork out a little more, but make that extra spend feel like an upgrade, not a surcharge.

Go beyond just offering a room by turning their stay into an experience. With curated add-ons like booked excursions, a premium minibar, spa treatments, or late check-outs, you’re not just upselling—you’re adding value.