Edinburgh argues over where the tourist-tax money should go

Every August Edinburgh becomes an enormous stage. Hotels, housing, public transport and streets are used more intensely while organisers face higher production and accommodation costs. The new levy turns some of that pressure into a visible stream of revenue.

The festivals’ argument is straightforward: a substantial share of tourism exists because of their programmes. They therefore want more of the money returned to venues, artists and production infrastructure.

The council has a broader calculation. Visitors also use cleaning services, transport, parks, policing and public infrastructure. A visitor levy is therefore not automatically a culture tax, even when culture is a major driver of demand.

That is the political tension. Too little reinvestment could weaken the festivals over time; too much ring-fencing could leave the city without enough resources to manage the crowds those festivals attract.

Edinburgh is becoming a European test case. Venice, Barcelona, Paris and other destinations face similar questions about how to balance tourism revenue with local pressure.

The most important measure will not simply be how much the levy raises. It will be whether the money improves the city for residents, visitors and the institutions that give people a reason to come.