Edinburgh is the economic, cultural and political capital of Scotland and is considered one of the UK’s primary powerhouses.
This reputation has fuelled significant population growth over the past decade, with the Edinburgh metropolitan area reaching nearly 559,000 residents in 2024, a 12.0% increase since 2014.
A compact city steeped in history, with notable cityscapes and exceptional views, Edinburgh is a renowned weekend-break destination with an international airport recording strong passenger growth and fast rail links on the East Coast Mainline branch.
As the second most visited city in the UK after London, Edinburgh’s appeal lies in its cultural vibrancy and strategic location.
Moreover, the Edinburgh Festival Fringe continues to be a global cultural highlight. In 2024, the festival sold approximately 2.6 million tickets (compared to 2.5 million in 2023), reaffirming its status as the largest annual arts festival in the world.
Source: HVS Research
Economic Indicators – UK
Source: International Monetary Fund (IMF), April 2025
Tourism Demand
Over the past decade, visitation to Edinburgh and the Lothians has increased by more than 25.0%, reaching over 5.3 million visitors in 2023, reflecting a compound annual growth rate (CAGR) of 2.6% between 2014 and 2023.
While Edinburgh has historically attracted a balanced mix of domestic and international travellers, trends show a stronger rise in international tourism. Domestic visitation grew at a reasonable CAGR of 1.5% (+14.5% overall), whereas international visitation increased significantly, growing at a CAGR of 4.3% (+26.5% overall). As a result, the share of international visitors increased from 38.5% in 2014 to 44.4% in 2023.
Domestic visitation to Edinburgh experienced a 6.1% decline in 2024, and while international visitation data for the city were not available at the time of writing, we note that international visitors to Scotland overall increased by 9.8% year on year. As visitation to Edinburgh and the Lothians represented almost 60.0% of the country’s total in 2023, we assume that growth for the capital has followed the same trend.
This rise in visitation has been accompanied and supported by significant developments at Edinburgh Airport, which has steadily expanded its network of European routes and added transatlantic connections. Between 2014 and 2024, total passenger numbers grew from 10.2 million to 15.8 million – an increase of 55.1%, equivalent to a CAGR of 4.5%.
With domestic passenger numbers witnessing a slight decline over the decade, the overall growth was entirely driven by international traffic which more than doubled to reach just over 11.0 million passengers in 2024. International visitors are typically more likely to require overnight accommodation, contributing to sustained demand for hotel rooms across the city and the wider region.
Rising demand for overnight stays in Scotland’s capital has sparked growing concerns about the sustainability of tourism. After years of debate, the Scottish Parliament passed the Visitor Levy Bill in May 2024, granting local authorities the power to introduce a levy on overnight accommodation.
The key aims of the legislation are to generate additional revenue for local services and infrastructure, mitigate the pressures of tourism and support sustainable tourism development. Under this framework, the City of Edinburgh Council plans to implement a 5.0% levy on paid overnight stays from July 2026, with funds to be allocated to city operations, infrastructure and cultural initiatives.
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