The 'premiumisation' of Edinburgh
Plus: Hot property with US buyers; driest year since 1964; and another serious stabbing
How the Capital became ‘the most expensive city break in Western Europe’
Edinburgh has been named the most expensive short break destination in western Europe following a dramatic rise in city hotel prices.
The study by Post Office Money found the cost of a short stay in Edinburgh now outstrips that of a similar visit to London, Paris and Barcelona.
It compared the price of a ‘basket of goods’ in major tourist cities, including two nights in a three-star hotel; visits to a top heritage attraction, museum and gallery; a three-course meal for two with wine; return transport from the airport and a 48-hour travel card. Hotel prices were based on the average of the ten cheapest en suite rooms on booking website hotels.com for 6-8 June.
The cost in Edinburgh (£601.50) was considerably higher than London (£523.40) and more than double that of Lisbon (£292.27).
What makes Edinburgh so expensive? The study found Edinburgh was among the most expensive cities for hotel accommodation (£399); entry to the heritage attraction (£19.50 for a ticket to Edinburgh Castle); and a cup of coffee (£3.50).
How much have hotel prices gone up? According to the hospitality data monitor Lighthouse, hotel prices in Edinburgh have risen by more than threequarters over the last five years, making them by far the fastest rising in the UK. The 82% rise (see table below) is almost double the increase seen in one of the next fastest growing, Glasgow, and more than three times that in London.
Why have they risen so much? A number of factors play a part, including the city council in partnership with the tourism sector adopting a strategy aimed at attracting fewer, more high-spending visitors - known as “premiumisation” within the industry. That has led to more luxury hotels opening in Edinburgh, for example. The city’s crackdown on short-term lets has also pushed more visitors into hotel accommodation, fuelling demand. Meanwhile, the hospitality sector has experienced some of the sharpest rising costs of any UK sector, due to sharp increases in utility bills, basic ingredients, and attracting and retaining staff. The hospitality industry in Scotland has not being given the same, extensive rates reductions as their counterparts south of the border.
Are the high prices putting people off? There is some evidence to suggest they may be starting to bite. According to the Great Britain Tourism Survey, Scots took 16% fewer staycations last year than in 2023, stayed for a shorter time and spent less. Edinburgh’s Festivals have reported a similar trend, with visitors from the rest of the UK and performers staying for shorter times and spending less on attending shows.
So, it’s a bad thing, right? There is growing concern about the rising cost of accommodation putting visitors off coming to Edinburgh. And, of course, it means we all pay more when granny or friends come to visit and need a hotel. High-spending tourists help make the tourism industry one of the city’s key economic drivers, generating more than £930 million in gross value added (GVA) in 2023, and directly employing 33,000 people and supporting tens of thousands more jobs.
The 10 UK cities with the biggest hotel price increases 2019-2024
Edinburgh 82%
Belfast 48%
Cardiff 47%
Glasgow 44%
Aberdeen 41%
Bristol 33%
Nottingham 32%
Brighton 27%
London 27%
Newcastle 26%
Source: Lighthouse data monitoring
YOUR EDINBURGH BRIEFING
OVER HERE AND BUYING FLATS: The number of US property buyers has risen to an eight-year high in the UK, with Edinburgh overtaking central London as the most popular location. The city has overtaken the London borough of Westminster, according to data from Rightmove, with Camden third, Glasgow fourth and Kensington and Chelsea fifth. (Read more about US property buyers in Edinburgh in Who owns Edinburgh?)
ANOTHER SERIOUS STABBING: A 17-year-old was treated at the Royal Infirmary of Edinburgh in the latest reported stabbing on and around Portobello Prom. A 16-year-old has been charged with attempted murder, and 14-year-old with possession of a weapon, after police were called to a large brawl at around 7.40pm on Friday. In a separate incident, a 15-year-old is due to appear in court after being arrested for possession of a knife at Morrisons supermarket on Ferry Road the previous afternoon. (You can read Jolene Campbell’s investigation which uncovered a rise of almost 30% in knife crime in the Capital in the last two years here.)
DRIEST IN 60 YEARS: It has been the driest start to the year in Scotland since 1964. Scottish Water are asking the public to consider how much water they use to avoid the potential need for restrictions. Meanwhile, the fire service are urging people to enjoy the outdoors responsibly after being called to Blackford Hill twice in 24 hours to tackle the latest wildfire.
PARCHED PARK: Trees and shrubs have been left parched in Dalry Community Park, which was upgraded as part of the £17m Roseburn to Union Canal active travel project. Katriona Gillespie, chair of the Gorgie Collective arts and community group, said: “All the newly planted trees are underwatered and are dying. The old woodland at Sauchiebank along Russell Road featured hundreds of mature oak, birch, rowan, willow and hawthorn trees. When plans to destroy the woods to make way for the path were revealed, local residents objected, fearing that the ‘replacement’ trees would not be adequately maintained. Unfortunately, it appears they were right.”
PRIDE BAN: Pride Edinburgh, Scotland’s longest running annual celebration of diversity, has banned political parties from participating in this year’s festival. The move is a response to a “lack of meaningful action” in response to the recent Supreme Court gender ruling. That means no parties will be allowed stalls or to make speeches at this year’s festival on 21 June. Other Pride festivals including Glasgow, London and Manchester have adopted the same stance.
‘CAR-FREE’ CALEY BREWERY BUILD: The major redevelopment of the Caledonian Brewery site on Slateford Road is set to be “car-free” with just two parking spaces for 168 flats. While the proposals have won the support of council planning officials, more than 150 objections have been lodged, including one from Merchiston Community Council. The major bone of contention is the likely impact on parking in one of the city’s most congested areas. Objectors point out there will be no legal restrictions on residents owning vehicles and based on average car ownership levels in the area (0.6 cars per household) that could mean an extra 100 vehicles parking on neighbouring streets. The application is set to be decided on Wednesday.
RICH LIST: Jenners building owner Anders Holch Povlsen, the Danish businessman has seen his wealth grow by almost £1 billion over the past year to retain his position as Scotland’s richest person in the Sunday Times Rich List, with wealth estimated at more than £7.7 billion. He is chief executive of the international clothing chain Bestseller and is the largest shareholder in online fashion and cosmetics retailer ASOS.
MOTORING ON: The great-grandson of Henry Ford, founder of the Ford Motor Company, has completed a takeover of Livingston FC. The US investor, who is vice-president of sales and marketing for Pentastar Aviation, is reportedly a millionaire, rather than a billionaire. Livingston are due to compete in the play-off final against either Ross County or Dundee on Monday, 26 May, for a place in next year’s Premier League.
Picture of the week
THE BUSINESS
Capital firms get opportunities to learn of Ukraine’s trade potential
Edinburgh Chamber is running an inbound trade mission focused on strengthening trade and collaboration between Scotland and Ukraine.
Energy companies from Ukraine, renewables businesses, and firms involved in agriculture, cosmetics, and cleantech are all participating in the event which takes place at the City Chambers in the High Street on 28 May.
In the year ended December 2024, total trade in goods and services between the UK and Ukraine reached £1.8 billion, an increase of 13.2% (£206 million) compared to the previous year. In Scotland, total trade with Ukraine amounted to £53 million, reflecting a modest but meaningful contribution to the broader UK–Ukraine economic relationship. The event offers Scottish companies the chance to hear directly from Ukrainian business and public sector leaders and to explore collaboration opportunities across several sectors.
LAW CHIEF: The Law Society of Scotland has appointed Ben Kemp as the organisation’s new Chief Executive. He takes up the role from August. He is currently at the Institute and Faculty of Actuaries (IFoA), where he has worked primarily as general counsel and executive director, with a recent 15-month tenure as interim chief executive.
CAPITAL LINKS: Edinburgh Airport has landed another international first, with Icelandair beginning operations between the Scottish and Icelandic capitals later this year for the first time, with a service operating four times a week from September to April.
SPIN-OUT CREATOR: A new role has been created at Edinburgh Innovations to further grow the number of new spin-out businesses from the University of Edinburgh. The first Director of Venture Creation has been announced as Lizzie Withington, who joins in July from Newcastle University where she has spearheaded the development of a 42 spin-out company portfolio.
THAT’S ENTERTAINMENT
IMAGINE ALL THE (YOUNG) PEOPLE: Imaginate, the Edinburgh International Children’s Festival, runs from Saturday until 1 June, with dedicated shows for all ages from 0-12 months upwards. This year’s programme is particularly packed, starting with the traditional family fun day on Saturday at the National Museum of Scotland.
KEEP ON RUNNING: Get on your running shoes, get out and cheer or just remember to check for all those road closures, the Edinburgh Marathon Festival is back on Saturday and Sunday. (Read about the unique group who have run every single Edinburgh marathon here.)
DRILL HALL REMEMBERS: The story of Scotland’s ‘forgotten’ rail tragedy is being retold this week at the former Army base from which many of the passengers who took the fatal journey set out. Gretna 110 Exhibition is at the Out of the Blue Drill Hall, Leith, from today until Saturday.
QUICK BITES
HILLTOP VENTURE: A restaurant space on the top of Calton Hill, formerly run as Lookout by Gardeners Cottage, is set to reopen as Café Calton next month. Operators of the Cafe Calton already run the Seafood Ristorante in St Andrews and The Broughton in Edinburgh’s New Town.
HELLO DARLING: A new pub and restaurant, The Captain Darling, is opening its doors in Stockbridge. Renowned Edinburgh chef Scott Smith, formerly of multi-award winning restaurant Fhior, has worked with the Òir Group to launch the new seven-days a week venture.