Edinburgh Festival Fringe to generate £6.5m a year towards Edinburgh's visitor levy

The study estimated the figure from the amount it said would be generated from the tax on accommodation from audiences, artists, arts industry and media visiting the city.

Edinburgh City Council is now considering how the funds from the visitor levy, which will begin at the end of July, will be distributed.

The levy - a charge of 5 per cent on overnight stays in the city's hotels, guest houses, B&Bs, short-term lets and campsites, capped at five nights - is forecast to raise £100 million in the first three years, then £50m a year.

The cash is expected to be used for a wide variety of projects, including street cleaning, improved lighting, the local arts and culture sector and tourism marketing for the city.

In its annual review, the Fringe said: “As the Fringe Society and wider Fringe community look ahead to 2026, external factors such as this have the potential to impact the festival and the wider visitor economy with Scotland’s capital city.

“Artists and venues who take the risk of bringing this remarkable festival to life are facing costs at an all-time high.”

It added: “In a city world-famous for its festivals, and none more so than the Fringe, new investment opportunities such as Edinburgh’s new visitor levy can offer the Fringe community new ways of building resilience, championing creativity and inclusion, and driving a more sustainable visitor economy long-term.”

Tony Lankester, chief executive of the Edinburgh Festival Fringe Society said: “There is no better platform in the world for artists to take the stage boldly, tell their stories and share their worlds, than the Edinburgh Festival Fringe. The Fringe Society exists to support artists at any stage of their career in bringing work to Edinburgh every August, and our review of the year is an important step in recognising the year-round work that we deliver.

“As we reflect on 2025, what is clear is that the Fringe Society and the wider Fringe community continue to be resilient against a raft of ongoing external challenges. It’s important to recognise that we’re grappling with the big questions and are committed to protecting and preserving the Fringe into the future as we look ahead to its 80th anniversary year in 2027.”