Festivals facing ‘economic shock’ as a result of short-term lets licensing move

EDINBURGH’S world famous festivals are facing an “economic shock” as a result of new short-term letting regulations – with MSPS being warned that this could lead to Scotland losing a “unique part of its intangible cultural heritage”.

Festivals Edinburgh, which brings together the bosses of the city’s various festivals, is warning that the loss of accommodation could result in the number of shows included as part of the world famous Edinburgh Festival Fringe falling by about a third in 2024.

The organisation went on to warn this could lead to the loss of about 700 full-time equivalent (FTE) jobs.

Festivals Edinburgh director Julia Amour told how a survey carried out by some of the major venues that take part in the Fringe, involving more than 300 accommodation providers, had suggested just under 10 per cent of these would continue to make properties available under the coming regime .

The Fringe Society has taken a “slightly more benign view ... that perhaps 50% of activity might be prevented by people being unable to get accommodation”, Ms Amour said

But with MSPS being told new licences for properties rented out as short term lets could cost up to £5,869 a year for larger premises in Edinburgh, fears have been raised that the introduction of licences for Airbnb-style lets could result in a third of the overall Fringe programme being lost.

In its written submission to MSPS on the Local Government, Housing and Planning Committee, Festivals Edinburgh noted the Fringe Society had made the “conservative estimate” that a third of its programme for 2024 could be lost, with this “representing a minimum of £30 million in additional economic impact and nearly 700 FTE (full time equivalent) jobs in the first year alone”.

Ms Amour told the committee: “There might be some people who feel that it could be an attractive idea for the Fringe to resize.

“However this is not a managed consolidation, this is an economic shock.

“And that economic shock would not simply have the effect of reducing the numbers of shows and the numbers of workers ... but it is the start of a downward spiral.

“The spiral is the fewer shows, the fewer reviewers, the fewer bookers of work, the fewer audiences.”