Edinburgh Festivals Push for Bigger Share of Visitor Levy Funds
Edinburgh’s major festivals are calling for a larger share of money raised through the city’s new visitor levy, arguing that the charge is also increasing their own costs. Councillors are due to discuss festival funding again on Friday, 28 August.
Edinburgh introduced its 5% visitor levy on 24 July 2026, applying to the accommodation cost of most paid overnight stays for the first five nights.
The scheme is expected to raise up to £50 million a year once fully established, with money being reinvested across city infrastructure, culture, events, and visitor services.
Why Festivals Want More Funding
Festival organisers say the new levy is adding to the cost of accommodating performers, authors, artists, and other participants during Edinburgh’s busiest periods.
The sector has estimated that the additional accommodation charges and administration could cost festivals more than £1.1 million a year.
Edinburgh International Book Festival director Jenny Niven has said its accommodation costs for visiting authors increased by more than £10,000 because of the levy.
Festival organisations are not calling for the levy to be scrapped. Instead, they want a larger share of the money it raises to be reinvested directly into the events that attract many of the visitors paying it.
Council Considering Festival Grant Increase
The City of Edinburgh Council has considered a 5% increase to existing festival grants, although organisers argue this would not cover the extra costs created by the visitor levy.
The proposal was discussed by the Culture and Communities Committee earlier in August but was postponed after councillors said they had not received the relevant report early enough to consider it properly.
A dedicated committee meeting is now scheduled for Friday, 28 August at 10am, when festival funding is expected to return to the agenda.
How Will Edinburgh Spend Visitor Levy Money?
The visitor levy is designed to fund a much wider programme than Edinburgh’s festivals alone.
After administration and other allocations, the council plans to divide much of the remaining money between:
- 55%: City Operations and Infrastructure
- 35%: Culture, Heritage and Events
- 10%: Destination and Visitor Management
The Culture, Heritage and Events allocation covers projects across Edinburgh rather than going directly to festival organisers.
Previously agreed investment includes funding for cultural venues and projects such as Leith Theatre, the former Royal High School, and a planned Market Street arts hub centred on the City Art Centre.
Festivals Point to Their Value to Edinburgh
Festival organisers argue that their events play a major role in generating the tourism spending from which the levy is collected.
An impact study covering Edinburgh’s 11 major festivals estimated that they generated £558 million in net economic impact for the city in 2025.
August is particularly important, with the Edinburgh Festival Fringe, Edinburgh International Festival, Edinburgh International Book Festival, Edinburgh Art Festival, and Royal Edinburgh Military Tattoo all attracting visitors to the capital.
That leaves the council with a difficult balance. Visitor levy money is intended to help Edinburgh manage the impact of tourism across transport, streets, public spaces, culture, and other services, but festival organisers argue that their own increased costs also need to be recognised.
What Happens Next?
The next key date is 28 August, when councillors are expected to reconsider festival funding.
The question will be whether the council increases direct support beyond the previously proposed 5% uplift or keeps more of the visitor levy income within its wider spending programme.
Our Take
The visitor levy was never intended to act as a direct rebate for Edinburgh’s festivals, and there are plenty of demands on the money across the city.
But if festivals are now paying substantially more to accommodate the performers and participants who bring visitors to Edinburgh, it is fair to ask how much of the new cultural funding will reach those organisations directly.
The 28 August meeting should make the council’s position clearer.