Edinburgh festivals boost city’s hospitality sector

By James Bayley

Published: 05 August, 2024

Nearly 250,000 people attended the Edinburgh Fringe and other festivals last year, resulting in a 30% increase in average daily sales for hospitality venues in the city compared to the rest of the year.

Hotels are already experiencing strong demand, with an average occupancy rate of 79% in August, peaking at 86.1%.

The month-long celebration is one of Scotland’s biggest events and a chance to highlight its renowned hospitality, from pubs and restaurants to hotels and bars.

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Leon Thompson, executive director of UKHospitality Scotland, noted the influx of visitors for The Fringe, The Edinburgh International Festival, The Royal Edinburgh Military Tattoo and the International Book Festival. He said: “That fantastic hospitality is a central part for those visiting, as we showcase to visitors and residents what makes Scotland one of the leading tourist destinations in the world.

“The sales boost that provides is invaluable. We saw sales increase a third on average last year and we expect that to be replicated, and hopefully beaten this year.

“It’s brilliant to see such high demand for our hotels too, but those still confirming plans to visit Edinburgh this month can rest assured that there are still rooms available.

“This all comes at a crucial time for hospitality businesses, which continue to struggle with rising costs, and we hope to see hundreds of thousands of people enjoying the best of Edinburgh over the next month.”

In related news, the Scottish Parliament passed the Visitor Levy Bill on 28 June, concluding a decade-long debate on whether councils should have the authority to introduce a visitor levy or tourist tax. The Bill empowers councils to consider and implement such a levy, although it won't come into effect until 2026 at the earliest.

Funds from the levy will be used to enhance facilities for visitors, and local Levy Forums will be established to discuss fund allocation. However, Thompson warned that additional costs could make Scotland less competitive, and urged councils to listen to business voices when considering the levy.

The Scottish Licensed Trade Association (SLTA) has opposed the visitor levy, with managing director Colin Wilkinson urging the government to acknowledge it as a tax. He pointed out that while 21 European countries have some form of visitor levy, they do not charge 20% VAT on accommodation.

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