Edinburgh councillor warns spending visitor levy income on advertising is 'shameful use of public funds'

According to a contract tender published by the city, it is looking to spend an estimated £320,000 on graphic design services for its destination marketing service, Forever Edinburgh.

The final cost of the contract could be more or less, and final approval for the spending will need to come from councillors – but is understood that the money will come from the visitor levy.

Forever Edinburgh markets the city to potential tourists and new residents | NW

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SNP councillor Kate Campbell said: “Residents will be disappointed, after the budget cuts forced through by the Labour administration, that the council is choosing to spend hundreds of thousands of pounds on marketing the city to tourists when most people recognise that Edinburgh already suffers from over-tourism.

“The SNP proposals for the Visitor Levy, which were rejected by Labour and their unionist coalition partners, would have invested almost a billion pounds more in council housing.

“Instead, they’ve made it very clear where their priorities lie. During a cost of living crisis this is a shameful use of public funds.”

The visitor levy, set to come into effect from July 2026, places a 5% surcharge on overnight accommodation stays in the city. It is expected to bring in around £50,000,000 per year for the council.

The legislation behind the visitor levy includes an annual percentage spend on ‘destination and visitor management’.

After administrative costs are taken out, as well as a few major council spending priorities, 10% of whatever remains would be spent on the area.

The contract would run for two years, with an option to extend it for a further two years in the future. The £320,000 cost estimate was for a hypothetical four year contract.

Forever Edinburgh markets the city to potential tourists and new residents, with the contract tender looking to draw in graphic design firms with experience in tourism advertising.

Eilidh Keay, chair of Living Rent Edinburgh said: “The city does not need more tourism, it needs everyone living here to have access to a safe, secure, affordable home.

“Spending approximately £300k on marketing to tourists when people are being hit hard by a housing crisis, benefit cuts and council tax increases suggests that the council is blind to the experiences of its constituents.

“Edinburgh council is spending £5m of the £35m tourist tax funds to go towards affordable housing, but this is not enough. For years, tourism has seen short term lets rip through our city, pushing people out of their communities due to high rents and a lack of housing.

“Funds generated from the tourist tax should go into improving the lives of people who live and work in Edinburgh, not lining the pockets of landlords who see our city as nothing more than a holiday destination.”

Edinburgh Council was contacted for comment.