Edinburgh hotels most expensive in world over summer thanks to Fringe inflation
US officials receive a high allowance for hotels while staying in the Scottish capital during July and August
Konoly
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Edinburgh has some of the most expensive hotels in the world during the summer months – even pricier than glitzy destinations like Dubai and Monaco, and tropical islands such as Fiji and the Caymans – according to the US government.
The US Department of State releases a new per diem rating each month, which shows the maximum allowance for reimbursements of US government officials travelling on official business around the world.
In February, the destination with the top lodging allowance is Edinburgh, with $607 (£481) per day being allocated to US officials travelling on business to the Scottish capital.
This sky-high lodging rate for Edinburgh applies to US officials travelling in the summer months, from 1 July to 31 August, a period when the city becomes particularly busy welcoming visitors to the performance arts Fringe Festival.
Patrons and performers at the festival, which lasts around three weeks in August, have previously flagged their concern over the hugely inflated pricing of accommodation, which makes it harder for artists to break even with their acts.
“Every single year since I’ve started, every comedian has said, ‘I wonder if the Fringe is not going to happen this year’ because no comedian wants to go because of the accommodation, because it just keeps going up and up and up,” Glasgow-based comic Larry Dean told The Independent during 2023’s Fringe.
It was also discovered last year that accommodation prices in Edinburgh are being inflated by as much as £1,125 a night during the Fringe festival.
VisitScotland, the government tourism agency, told The Independent that it is “committed to the responsible growth of our tourism and events industry.
“We work with businesses and stakeholders to help deliver the best possible experience for every visitor, encouraging them to consider the importance of providing great quality services and hospitality that offer value for money.
“However, ultimately we have no input or control over the pricing strategy of tourism or events businesses.”
After the festivities wrap up, the US officials’ lodging rate for the city drastically drops by several hundred dollars to $250 (£198) from 1 September until 30 June.
Destinations on the US Department of State’s list are split into two seasons, yet some have a consistent rate throughout the year.
The seasonal uplift was introduced in March 2018, in the middle of the first Trump administration, beginning at $641 (£509) in the three months to September, but was shortened to two months in 2023, The Times reports.
Overall, Edinburgh over the summer has a higher allowance than the Cayman Islands in the western Caribbean, which gives officials a lodgings rate of $588 (£466).
Natadola in Fiji and areas of Aruba have an allowance of $545 (£432) and $539 (£427) respectively.
Locations that also have their rate set at $500 (£396) or over for hotel stays include Tel Aviv, Reykjavik and Bermuda.
The US State Department says that its maximum lodging amount is intended to “substantially cover the cost of lodging at adequate, suitable and moderately-priced facilities”.
While Edinburgh has the highest rate in the UK, next on the list are London and Crawley with a lodging rate of $350 (£277).
Countries with the lowest accommodation rates include the Tokelau Islands, a dependent territory of New Zealand and Vanuatu, both small destinations in the South Pacific Ocean, at $20 (£15) per day.
The Independent has contacted VisitScotland for comment.
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