The eye-watering sum Edinburgh's festivals are now said to be worth to the Scottish economy
A new study said they are a ‘national asset of strategic importance’
Edinburgh’s “powerhouse” festivals are projected to have a gross economic impact of more than £4.2 billion in Scotland over the next five years, a new report has said.
The study by Festivals Edinburgh, the umbrella organisation for the city’s main festivals - including the Fringe and the International Festival - calculated the events had an annual gross economic impact in Scotland of £852 million.
The annual net economic impact in Edinburgh was calculated at £558 million, based on audience data from 2025.
The report said they are a “national asset of strategic importance whose contribution to Scotland must be vigorously championed and securely sustained through public investment”.
It found around 80 per cent of audiences saw the festivals as part of what makes Edinburgh a special place to live in or visit.
In a foreword to the new study, Professor Daisy Fancourt of University College London, the author of the bestselling book Art Cure: The Science of How the Arts Transform Our Health, said: “The Edinburgh festivals have long stood as one of the world’s most remarkable demonstrations of the power of arts and culture.”
She added: “Shared cultural experiences create opportunities for dialogue, build understanding and challenge ideas. They bring people together across generations, backgrounds and perspectives, helping to build trust and social cohesion.
“At a time when many communities are grappling with social fragmentation and unrest, cultural participation offers powerful opportunities to strengthen civic life and nurture a sense of common purpose.
“The festivals show what is possible when culture is placed at the heart of civic life, and this report provides a powerful case for the importance of sustaining and investing in their future for generations to come.”
The festivals saw more than £10 million spent on event production and creative talent in Scotland in 2024/25, according to the new report.
“The expenditure of the festivals on creative talent based within Scotland provides an easily accessible and straightforward indicator of the economic benefit and level of involvement of Scotland’s creative talent,” it said.
The net economic impact (GVA) in Edinburgh over the next five years was calculated at £2.79 billion, while the gross economic impact in Scotland is projected to be £4.26 billion.
The report said the “vast majority of this impact is generated outside of the cultural and events world and is felt instead in hospitality/tourism sectors such as accommodation, food and drink, shopping and transport”.
It added: “The festivals economic impact is therefore larger for the wider economy of Edinburgh and Scotland than it is for the cultural economy.”
The study also identified a major expansion in the festivals’ community footprint.
Over the five years from 2018 to 2023, the festivals delivered a 489 per cent increase in engagement with community groups, a 39 per cent increase in schools participation and a 245 per cent increase in partnership activity, it said.
The findings were released ahead of the 80th anniversary of the Edinburgh International Festival and the Fringe next year.
SNP Culture Secretary Màiri McAllan said: ”The Edinburgh festivals are truly world class — and this research confirms their extraordinary cultural, social and economic value to Scotland.
“A projected national economic impact of £4.26 billion over the coming five years, 90 per cent of audiences describing them as unique places of cultural discovery, and 79 per cent of Edinburgh residents saying they make the city a special place to live — these are remarkable findings.
“As we approach the 80th anniversary of Edinburgh’s status as a festival city, the Scottish government is proud to champion the festivals and committed to ensuring they continue to thrive for the benefit of people across Scotland and on the global stage.”
Councillor Margaret Graham, culture and communities convener at City of Edinburgh Council, said: “Edinburgh’s festivals are at the heart of what makes our city so special, bringing together residents and visitors to enjoy thousands of shows and events throughout the year.
“This research highlights that these celebrations deliver significant cultural, social, and economic benefits, supporting local communities and businesses while enhancing the city’s global reputation.
“As we approach the 80th anniversary of our festivals, we remain committed to supporting their future while balancing the needs of residents, visitors, and business, ensuring Edinburgh continues to thrive as a world-leading festival city.”
Vicki Miller, chief executive of VisitScotland, said the festivals are “a key part of what makes Scotland a must-visit destination, drawing thousands of international visitors to the country each year”.
She added: “Cultural events like these provide authentic and immersive experiences for people across Scotland and from around the world and are vital in strengthening our international profile and supporting local businesses, artists, and performers.”
Lori Anderson, director of Festivals Edinburgh, said: “We are facing challenging times which call for boldness, direction, and vision – and the Edinburgh festivals, through their pioneering collaborative work, focused strategic thinking, and hugely praised programmes, have these qualities in abundance.
“They have a powerful role to play in increasing the creative capacity, economic strength, and international reputation of Scotland. Ahead of the 80th anniversary of the birth of our world leading festival city, now is the time to champion and invest in the festivals’ success.”
The festivals represented in the new impact study are the Edinburgh Science Festival, Edinburgh International Children’s Festival, Edinburgh Jazz and Blues Festival, Edinburgh International Festival, Edinburgh Festival Fringe Society, the Royal Edinburgh Military Tattoo, Edinburgh Art Festival, Edinburgh International Book Festival, Edinburgh International Film Festival, Scottish International Storytelling Festival, and Edinburgh’s Hogmanay.
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