Edinburgh's council leader Jane Meagher has signalled that the city's upcoming visitor levy could support the annual Hogmanay celebrations, which currently face funding uncertainty despite generating nearly £200 million for the local economy. The statement comes as this year's four-day Hogmanay event runs through Thursday and as Edinburgh prepares to implement the UK's first transient visitor levy in July 2026.
City of Edinburgh Council approved the levy in August. It will add 5% to accommodation bills. Meagher expressed that she would be "surprised if some of the visitor levy wasn't used to support Hogmanay celebrations in some way". She emphasised that the legislation mandates its use for tourism support: "It has got to be used for the purposes in the legislation, including supporting tourism, and the winter festivals are an important part of that."
The winter festivals, including the Christmas market, attracted more than 2.8 million people last year and generated almost £200 million for the economy. The City of Edinburgh Council and events firm Unique Assembly jointly organize Edinburgh's Hogmanay, which contributes more than £250,000 annually to the festival.
Funding challenges
Al Thompson, Director of Unique Assembly, told The Herald the event desperately needs more stable support. "We have been saying for years that the event needs more support," he said. Edinburgh's Hogmanay remains one of the few Scottish festivals without multi-year funding from the Scottish Government, requiring annual applications.
Thompson revealed the precariousness of current arrangements: "We only found out about our funding application for the torchlight procession last month. We already had to put tickets on sale." He noted that discussions with the council and Scottish Government are now "positive" and show "an understanding about where we are and how precarious it all is".
He also highlighted the festival's promotional value: "The content from Edinburgh's Hogmanay are used year-round to promote Scotland. The value of that is considerable compared to the money that is actually put into the event."
Focus on inclusion
Meagher emphasised accessibility as a priority for this year's celebrations, which feature a concert in Princes Street Gardens headlined by Grammy Award winners Wet Leg and local boy Hamish Hawk instead of the traditional main street party. The city offered free tram travel for revellers on Hogmanay to boost inclusivity.
"I am very keen on closing the gap in the city between the rich and the poor," Meagher said. "The free events are so important to us, because it keeps it accessible to people."
She noted more local businesses participate in the Christmas markets this year and praised the festivals' job creation: "The winter festivals put £200 million into the economy, it is an investment – it is good for business and jobs, and people need jobs."
The Scottish Government has been contacted for comment.
Beyond Hogmanay support, the visitor levy could fund infrastructure improvements including lighting, litter picking, and graffiti removal.
Note: This article was created with Artificial Intelligence (AI).
