Edinburgh’s cultural sector is set for a significant funding boost as arts organisations and festivals are expected to receive around 25% more council funding through money generated by the city’s new visitor levy.

The visitor levy, which came into effect in July, is a 5% charge on eligible paid overnight accommodation for up to five nights. Edinburgh expects the scheme to raise as much as £50 million a year, with part of the money being directed towards culture, heritage and events.

The additional funding could provide greater financial stability for cultural organisations while supporting local artists, festivals, venues and new creative projects across the Scottish capital. The council says its culture programme is designed to keep Edinburgh accessible, innovative and attractive as a major cultural destination.

The investment comes as Edinburgh continues to strengthen its reputation as an international festival city. Plans also include support for cultural infrastructure, heritage sites and projects intended to expand cultural activity beyond the busiest visitor periods.

For Scotland’s wider creative sector, the move could become an important example of how tourism revenue can be reinvested directly into culture and heritage.