EDINBURGH’S festivals are calculated to have a gross economic impact of more than £4.2 billion in Scotland over the next five years, a new landmark report has found.
A study by Festivals Edinburgh, the umbrella organisation for the city’s main festivals, has found that events in the capital add more than £850 million in overall value to the Scottish economy annually.
Based on 2025 audience data, the benefits to the city’s economy have risen from £492m to £675m since 2022.
Figures from the report were based on the combined audience of over four million for events including the Edinburgh International Festival, the Fringe, the Tattoo, Hogmanay festival, along with the city’s celebrations of books, jazz, film, and science.
The report found that 80% of audiences saw the festivals as part of what makes Edinburgh a special place to live, work and visit and added that they are a “national asset of strategic importance whose contribution to Scotland must be vigorously championed”.
It also revealed that Edinburgh residents make up around 40% of the festival ticket sales and called for the events to be “securely sustained through public investment”.
Professor Daisy Fancourt of University College London, said in a foreword to the study that 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 research comes days after the Edinburgh TV Festival announced it will leave the Scottish capital after 50 years and will relocate to Greater Manchester, with organisers saying it is to “radically reduce the costs” and make it easier for people to attend.
The report indicates that the city’s festivals receive around £12m in public funding via the Scottish Government, Creative Scotland and Edinburgh City Council.
Around £3.6m was spent on Scottish-based “creative talent” by festivals last year, with a further £6.6m spent on event production companies in the country.
“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,” the report said.
The net economic impact (GVA) in Edinburgh over the next five years was calculated at £2.79 bn, while the gross economic impact in Scotland is projected to be £4.26bn.
The report added that 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 research did not include major outdoor concerts at Murrayfield or the Royal Highland Centre at Ingliston.
The study also identified a major expansion in the festivals’ community footprint.
The findings were released ahead of the 80th anniversary of the Edinburgh International Festival and the Fringe next year with Culture Secretary Màiri McAllan welcoming the news.
“The Edinburgh festivals are truly world class — and this research confirms their extraordinary cultural, social and economic value to Scotland,” she said.
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.”
