Edinburgh Airport recorded its busiest ever year in 2018 with more than 14 million people passing through, up 6.5 per cent on the previous year.

However, despite this growth, the city still lags behind in terms of the ratio of airport hotel rooms to airport passengers, comparative to other UK cities (see table, below).

International growth was up 9.5 per cent and domestic growth up almost 2 per cent. Edinburgh’s now recognised as one of the busiest airports in the UK and, with more routes being added every year, this is only set to grow.

Today the airport offers flights to more than 150 destinations, from the Middle East to the Far East and Europe to America, and the number of passengers passing through only serves to demonstrate the strong appetite that exists for travel to and from Scotland.

Proposals for the development of a number of new airport hotels in Edinburgh exist, including the 200-bed Aviator Hotel currently going through the planning process, but for now, the city remains undersupplied.

Edinburgh is the second strongest tourist market in the UK, as one of the most popular destinations for domestic city breaks and the gateway to Scotland for international visitors. It's recognised as the world’s leading festival city, with 12 cultural festivals including the Festival Fringe, International Film Festival and the Military Tattoo, and its tourist season continues to expand, which in turn is boosting the hotels sector and supporting further development.

The strong tourist trade has boosted hotel development in Edinburgh city centre and the surrounding area, with 63 projects in the pipeline, of which 29 are either in the final stage of planning or under construction, increasing the current supply of bedrooms by 40 per cent.

13 hotels are due to open in the next two years. Currently Edinburgh boasts 223 hotels, providing 15,417 bedrooms, which, relative to the growth in tourism in the last five years, is undersupplied.

When the W Hotel is unveiled following the completion of Edinburgh St James in 2021 it will bring a world-class luxury hotel and iconic brand to the city. Edinburgh will also welcome a five-star Virgin Hotel – the first of the Virgin brand hotels to launch outside of the US – in January 2020, ahead of openings in London, Paris and seven other cities worldwide.

VOCO Edinburgh Haymarket, a four-star hotel with 150 bedrooms, is due to open in April 2020. Other brands already confirmed to be expanding in the city include Malmaison Buchan House, Premier Inn and StayCity Serviced Apartments.

As the tourist industry continues to flourish, a bid to introduce a £2 tourist tax has won strong support and monitoring the growth of tourism in Edinburgh is vital if we are to preserve the very elements of the city that attract visitors here. However, with considerate planning, the hotels sector and Edinburgh can continue to flourish simultaneously.

Further information

Read more: Is Airbnb a threat to Edinburgh's thriving hotel market?