Economy of Edinburgh
Encyclopedia
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, as the capital of Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, is usually regarded as one of the twin engines of the Scottish Economy
Economy of Scotland
The economy of Scotland is closely linked with the rest of the United Kingdom and the wider European Economic Area. Scotland has the second largest GVA per capita of countries in the United Kingdom after England, though it is still lower than the average of the United Kingdom as a whole...
alongside Glasgow
Glasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
. Edinburgh has been consistently one of the most prosperous parts of the country and has the strongest economy of any city in the UK outside London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. The economy of Edinburgh and its region (which includes areas such as the Forth Valley, Fife
Fife
Fife is a council area and former county of Scotland. It is situated between the Firth of Tay and the Firth of Forth, with inland boundaries to Perth and Kinross and Clackmannanshire...
and the municipal authorities of Midlothian
Midlothian
Midlothian is one of the 32 council areas of Scotland, and a lieutenancy area. It borders the Scottish Borders, East Lothian and the City of Edinburgh council areas....
, East Lothian
East Lothian
East Lothian is one of the 32 council areas of Scotland, and a lieutenancy Area. It borders the City of Edinburgh, Scottish Borders and Midlothian. Its administrative centre is Haddington, although its largest town is Musselburgh....
and West Lothian
West Lothian
West Lothian is one of the 32 unitary council areas in Scotland, and a Lieutenancy area. It borders the City of Edinburgh, Falkirk, North Lanarkshire, the Scottish Borders and South Lanarkshire....
) has been announced as one of the fastest growing city region
City region
The term city region has been in use since about 1950 by urbanists, economists and urban planners to mean a metropolitan area and hinterland which has a shared and formal administrative government...
s in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, with strong rates of growth in banking, financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
and hi tech
High tech
High tech is technology that is at the cutting edge: the most advanced technology currently available. It is often used in reference to micro-electronics, rather than other technologies. The adjective form is hyphenated: high-tech or high-technology...
research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
.
The economy of Edinburgh is largely based around the service sector, with tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
, financial services and banking being particularly important as well as education and high tech research. The city has been in good economic health since the arrival in 1999 of the Scottish Parliament
Scottish Parliament
The Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament...
, which had a so-called "headquarters effect", with many government departments being set up in the city, resulting in an increase in recruitment and employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
. On 12 March 2004, Edinburgh was granted Fairtrade City status. FDi Magazine has named Edinburgh as the Best Small City of the Future for 2010/2011, while it is also the most competitive large city in the UK according to the Centre for International Competitiveness.
Economic profile
- In 2009 the population of the city was estimated by the General Register Office for ScotlandGeneral Register Office for ScotlandThe General Register Office for Scotland was a non-ministerial directorate of the Scottish Government that administered the registration of births, deaths, marriages, divorces and adoptions in Scotland. It was also responsible for the statutes relating to the formalities of marriage and conduct...
to be 477,660. Edinburgh's population is growing significantly, mainly through inward migration. This strong growth is, however, leading to pressure on the green beltGreen beltA green belt or greenbelt is a policy and land use designation used in land use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighbouring urban areas. Similar concepts are greenways or green wedges which have a linear character and may run through an...
, particularly in the west of the city as office and housing developments compete for space.
- Edinburgh has a large metropolitan travel to work areaMetropolitan areaThe term metropolitan area refers to a region consisting of a densely populated urban core and its less-populated surrounding territories, sharing industry, infrastructure, and housing. A metropolitan area usually encompasses multiple jurisdictions and municipalities: neighborhoods, townships,...
which provides a pool of workers from as far afield as the likes of GlasgowGlasgowGlasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
, much of FifeFifeFife is a council area and former county of Scotland. It is situated between the Firth of Tay and the Firth of Forth, with inland boundaries to Perth and Kinross and Clackmannanshire...
, StirlingStirlingStirling is a city and former ancient burgh in Scotland, and is at the heart of the wider Stirling council area. The city is clustered around a large fortress and medieval old-town beside the River Forth...
, FalkirkFalkirkFalkirk is a town in the Central Lowlands of Scotland. It lies in the Forth Valley, almost midway between the two most populous cities of Scotland; north-west of Edinburgh and north-east of Glasgow....
and towns in the Scottish BordersScottish BordersThe Scottish Borders is one of 32 local government council areas of Scotland. It is bordered by Dumfries and Galloway in the west, South Lanarkshire and West Lothian in the north west, City of Edinburgh, East Lothian, Midlothian to the north; and the non-metropolitan counties of Northumberland...
such as GalashielsGalashielsGalashiels is a burgh in the Scottish Borders, on the Gala Water river. The name is often shortened to "Gala" .Galashiels is a major commercial centre for the Scottish Borders...
and PeeblesPeeblesPeebles is a burgh in the committee area of Tweeddale, in the Scottish Borders, lying on the River Tweed. According to the 2001 Census, the population was 8,159.-History:...
.
- The city has the second highest gross value addedGross value addedGross Value Added ' is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy...
per capita of any city in the UK, after London.
- The unemployment rate as of March 2010 stands at 3.6% and is consistently lower than the Scottish average of 4.5%.
- EmploymentEmploymentEmployment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
in Edinburgh has grown at 1.4% annually over the period 1995 - 2004, with job vacancies comfortably outstripping job seekers over that same period.
- In 2007, the Gross Value AddedGross value addedGross Value Added ' is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy...
of the city was £15,304 million , or 15.4% of the Scottish total.
- There are pockets of deprivation, social exclusion, poor quality housingHouseA house is a building or structure that has the ability to be occupied for dwelling by human beings or other creatures. The term house includes many kinds of different dwellings ranging from rudimentary huts of nomadic tribes to free standing individual structures...
and pockets of unemploymentUnemploymentUnemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
particularly in peripheral areas of the city, but also in some inner city areas.
- Edinburgh's workforce is more productive than that of any other city in the UK. The Capital's Gross Value Added per head is £32,697, well ahead of the Scottish average of £19,267 and also far ahead of the UK average of £20,430.
Top employers
The table below shows the top employers in terms of employee numbers in the City of Edinburgh:| Employer | Number of employees | ||||||
|---|---|---|---|---|---|---|---|
| City of Edinburgh Council | 20,200 | ||||||
| NHS Lothian NHS Lothian NHS Lothian is one of the fourteen regions of NHS Scotland. It provides healthcare services in the City of Edinburgh, East Lothian, Mid Lothian and West Lothian areas. Its headquarters are at Waverley Gate, Edinburgh-Headquarters:... |
19,500 | ||||||
| Royal Bank of Scotland Royal Bank of Scotland The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the... |
9,200 | ||||||
| Lloyds Banking Group Lloyds Banking Group Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with... |
8,750 | ||||||
| University of Edinburgh University of Edinburgh The University of Edinburgh, founded in 1583, is a public research university located in Edinburgh, the capital of Scotland, and a UNESCO World Heritage Site. The university is deeply embedded in the fabric of the city, with many of the buildings in the historic Old Town belonging to the university... |
8,050 | ||||||
| Standard Life Standard Life Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:... |
6,250 | ||||||
| The Scottish Government | 5,000 | ||||||
| AEGON AEGON Aegon N.V. is one of the world’s largest life insurance and pension groups, and a strong provider of investment products. Aegon's head office is in The Hague, Netherlands... UK |
3,000 | ||||||
| Scottish Widows Scottish Widows Scottish Widows plc is a life, pensions and investment company located in Edinburgh, Scotland, and is a subsidiary of Lloyds Banking Group. Its product range includes life assurance, pensions, investments and savings... |
2,950 | ||||||
| Lothian Buses Lothian Buses Lothian Buses Plc is the only municipal bus company in Scotland and the largest provider of bus services in Edinburgh, Scotland. City of Edinburgh Council own 91.01% of the company with the remainder being owned by East Lothian and Midlothian councils. As well as serving Edinburgh, Lothian Buses... UK |
2,050 | ||||||
| Source: Edinburgh by Numbers 2010/2011 | |||||||
Manufacturing
Manufacturing has never had as big a presence in EdinburghEdinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
compared to Glasgow
Glasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
and thus the city's growth was not underpinned by the manufacturing industry. Shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...
at Leith
Leith
-South Leith v. North Leith:Up until the late 16th century Leith , comprised two separate towns on either side of the river....
Docks was important in the 19th and early 20th centuries, however. Two manufacturing industries which were prominent in Edinburgh were brewing and printing. Brewing
Brewing
Brewing is the production of beer through steeping a starch source in water and then fermenting with yeast. Brewing has taken place since around the 6th millennium BCE, and archeological evidence suggests that this technique was used in ancient Egypt...
is a traditional industry. The closure of the Fountainbridge brewery in 2005 left Caledonian Brewery
Caledonian Brewery
Caledonian Brewery is a Scottish brewery founded in 1869 in the Shandon area of Edinburgh, Scotland. The Caley, as it is known locally, is the only survivor of over 40 breweries that operated in Edinburgh during the 19th century, although a number of independent breweries have opened in recent...
as the largest brewery in the city.
Banking and Insurance
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
and the fourth in Europe by equity assets, and is at the centre of a financial services in industry, which in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
has achieved a growth rate of over 30% over the period 2000 to 2005.
Edinburgh has been a centre of banking for over 300 years, the Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
was founded in 1695, by an act of the original Parliament of Scotland
Parliament of Scotland
The Parliament of Scotland, officially the Estates of Parliament, was the legislature of the Kingdom of Scotland. The unicameral parliament of Scotland is first found on record during the early 13th century, with the first meeting for which a primary source survives at...
, and is now part of the Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
, who have kept the Scottish headquarters in Edinburgh. The Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
also has its global headquarters in Edinburgh, operating from a new complex at Gogarburn and opened in October 2005. The bank was founded in 1727 by Royal Charter
Royal Charter
A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...
and is now the fifth largest in the world by market capitalisation
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
. In 2000, the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
(RBS) acquired the National Westminster Bank
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...
in the biggest banking takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
in British history, to create a huge group with an expanded portfolio and a global outreach. Ulster Bank
Ulster Bank
Ulster Bank is a large commercial bank, one of the Big Four in both Northern Ireland and the Republic of Ireland. The Ulster Bank Group is subdivided into two separate legal entities, Ulster Bank Limited and Ulster Bank Ireland Limited...
, Direct Line
Direct Line
Direct Line is part of the RBS Insurance division of the Royal Bank of Scotland Group that specialises in selling insurance and other financial services over the phone and internet....
and Coutts
Coutts
Coutts & Co. is one of the UK's private banking houses, now wholly owned by the Royal Bank of Scotland . RBS acquired Coutts and all of its overseas subsidiaries when it bought NatWest. On 1 January 2008, Coutts' international businesses were renamed RBS Coutts, aligning them more closely with...
constitute some of the other operations that are part of the RBS group. On 7 October 2007, a consortium led by RBS announced the successful acquisition of ABN Amro
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
, further growing its significance. Tesco Bank, as well as Virgin Money
Virgin Money
Virgin Money is a UK-based financial services company owned by the Virgin Group and founded by Sir Richard Branson in March 1995. It was originally known as Virgin Direct, and pioneered index tracking by launching a value Personal Equity Plan into the market. In the 2000s Virgin Money expanded its...
also have headquarters in Edinburgh.
In insurance terms, indigenous Edinburgh companies such as Standard Life
Standard Life
Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
and Scottish Widows
Scottish Widows
Scottish Widows plc is a life, pensions and investment company located in Edinburgh, Scotland, and is a subsidiary of Lloyds Banking Group. Its product range includes life assurance, pensions, investments and savings...
form a large part of the European insurance sector as well as being major employers in the city. Scottish Widows was founded in 1815, managing £82.8bn worth of funds at March 2005 with a workforce of around 4000.
The New Town and city centre has traditionally been home to many companies, in the banking, finance and legal professions, but modern needs have caused many to relocate. Immediately to the west of the city centre is the Terry Farrell
Terry Farrell (architect)
Sir Terry Farrell, CBE, RIBA, FRSA, FCSD, MRTPI is a British architect.-Life and career:Farrell was born in Sale, Cheshire. As a youth he moved to Newcastle upon Tyne, where he attended St Cuthbert's High School. He graduated with a degree from Newcastle University, followed by a Masters in urban...
master-planned Exchange business district, which now houses major employers such as Scottish Widows
Scottish Widows
Scottish Widows plc is a life, pensions and investment company located in Edinburgh, Scotland, and is a subsidiary of Lloyds Banking Group. Its product range includes life assurance, pensions, investments and savings...
, Standard Life
Standard Life
Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
, the Clydesdale Bank
Clydesdale Bank
Clydesdale Bank is a commercial bank in Scotland, a subsidiary of the National Australia Bank Group. In Scotland, Clydesdale Bank is the third largest clearing bank, although it also retains a branch network in London and the north of England...
and Baillie Gifford
Baillie Gifford
Baillie Gifford is an investment management firm which is wholly owned by 36 partners, all of whom work full time for the firm. It was founded in Edinburgh in 1908 and still has its headquarters in the city...
.
Edinburgh Park
Edinburgh Park
Edinburgh Park is a business park located in South Gyle, Edinburgh, Scotland. It is located to the west of the city, near Edinburgh Airport and the Edinburgh City Bypass. The layout of the park was masterplanned by American architect Richard Meier, and it opened in 1995...
is one of the largest business parks in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and is located on the western periphery of city, near Edinburgh Airport
Edinburgh Airport
Edinburgh Airport is located at Turnhouse in the City of Edinburgh, Scotland, and was the busiest airport in Scotland in 2010, handling just under 8.6 million passengers in that year. It was also the sixth busiest airport in the UK by passengers and the fifth busiest by aircraft movements...
. The park was opened in 1992 alongside the large out-of-town shopping development at South Gyle
South Gyle
South Gyle is an area of Edinburgh, Scotland, lying on the western edge of the city and to the south and west of an area of former marshland once known as the Gogarloch, on the edge of Corstorphine. To the north, some streets in the area have names including the words "North Gyle" but North Gyle...
and is close to major routes such as the A8, the M8 motorway and the A720 Edinburgh City Bypass
Edinburgh City Bypass
The Edinburgh City Bypass, designated as A720, is one of the most important trunk roads in Scotland. Circling around the south of Edinburgh, as the equivalent of a ring road for the coastal city, it links together the A1 towards north-east England, the A702 towards north-west England, the M8...
and now has its own railway station. Close to Edinburgh Park
Edinburgh Park
Edinburgh Park is a business park located in South Gyle, Edinburgh, Scotland. It is located to the west of the city, near Edinburgh Airport and the Edinburgh City Bypass. The layout of the park was masterplanned by American architect Richard Meier, and it opened in 1995...
at Gogarburn, the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
have opened their global headquarters. HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
, Royal Bank, Diageo
Diageo
Diageo plc is a global alcoholic beverages company headquartered in London, United Kingdom. It is the world's largest producer of spirits and a major producer of beer and wine....
, JP Morgan, Telewest
Telewest
Telewest, formerly Telewest Broadband and Telewest Communications was a cable Internet, broadband internet, telephone supplier and cable television provider in the United Kingdom...
, BT
BT Group
BT Group plc is a global telecommunications services company headquartered in London, United Kingdom. It is one of the largest telecommunications services companies in the world and has operations in more than 170 countries. Through its BT Global Services division it is a major supplier of...
, Fujitsu
Fujitsu
is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....
and Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
have all established large offices in this park. Following the opening of the Royal Bank's new headquarters, there will be around 20,000 people working in the western outskirts of the city.
Retail
EdinburghEdinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
has not had as large or as significant a retail sector compared to Glasgow
Glasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
, however large out-of-town shopping developments have taken place in recent years, such as the Gyle development in 1993 and the Fort Kinnaird
Fort Kinnaird
Fort Kinnaird is a large outdoor retail park, which is located in the village of Newcraighall, just off the A1 in the southeast of Edinburgh, Scotland...
shopping complex located to the east of the city. The St. James Centre
St. James Centre
The St. James Centre is a shopping centre located in Edinburgh, Scotland. It was designed by Ian Burke & Martin in 1964.Due to its brutalist architecture, it is one of Edinburgh's most unloved buildings, but remains a popular and busy shopping location....
and Princes Mall
Princes Mall Shopping Centre
Princes Mall is a shopping centre in Edinburgh, Scotland.It is located at the East end of Princes Street in the City Centre, next to Edinburgh Waverley Railway station...
started in the 1970s, then Cameron Toll
Cameron Toll
Cameron Toll is a suburb located to the south of Edinburgh, Scotland.Originally it was the site of a toll house built in the early 19th century, which was located on a stretch of road between Edinburgh and Dalkeith...
in the 1980s. More recent developments are the Gyle centre next to Edinburgh Park
Edinburgh Park
Edinburgh Park is a business park located in South Gyle, Edinburgh, Scotland. It is located to the west of the city, near Edinburgh Airport and the Edinburgh City Bypass. The layout of the park was masterplanned by American architect Richard Meier, and it opened in 1995...
, Ocean Terminal
Ocean Terminal, Edinburgh
Ocean Terminal in Leith, Edinburgh, Scotland is a shopping centre, designed by Sir Terence Conran.It is built on former industrial docklands on the north side of the city at the edge of the boundary between formerly separate ports of Newhaven and Leith. The land was formerly occupied by the Henry...
in Leith
Leith
-South Leith v. North Leith:Up until the late 16th century Leith , comprised two separate towns on either side of the river....
and the retail parks at Hermiston Gait, Straiton and Fort Kinnaird
Fort Kinnaird
Fort Kinnaird is a large outdoor retail park, which is located in the village of Newcraighall, just off the A1 in the southeast of Edinburgh, Scotland...
which are all next to the Edinburgh City Bypass. Edinburgh has many modern supermarkets in its suburbs which offer a more day-to-day type of shopping. As a shopping centre, particularly Princes Street, Edinburgh suffered some decline for a number of years, but since 2005 has seen the City centre yield rise in comparison to other similarly sized cities. Recent attempts to encourage shoppers back into the city centre have included, the development of top brand department stores on George Street
George Street, Edinburgh
Situated to the north of Princes Street, George Street is a major street in the centre of Edinburgh, the capital of Scotland. Laid out from 1767 as part of James Craig's plan for the New Town, George Street was named in honour of King George III.-Geography:...
and St Andrew Square and plans to redevelop Princes Street
Princes Street
Princes Street is one of the major thoroughfares in central Edinburgh, Scotland, UK, and its main shopping street. It is the southernmost street of Edinburgh's New Town, stretching around 1 mile from Lothian Road in the west to Leith Street in the east. The street is mostly closed to private...
and the St. James Centre
St. James Centre
The St. James Centre is a shopping centre located in Edinburgh, Scotland. It was designed by Ian Burke & Martin in 1964.Due to its brutalist architecture, it is one of Edinburgh's most unloved buildings, but remains a popular and busy shopping location....
in the future.
Transport
Lothian BusesLothian Buses
Lothian Buses Plc is the only municipal bus company in Scotland and the largest provider of bus services in Edinburgh, Scotland. City of Edinburgh Council own 91.01% of the company with the remainder being owned by East Lothian and Midlothian councils. As well as serving Edinburgh, Lothian Buses...
, the only municipal bus company in Scotland, has its headquarters in Edinburgh.
Tourism
TourismTourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
is another important mainstay of the economy of Edinburgh, supporting 30,000 jobs in the city worth £1.6bn to the city economy. Edinburgh is Scotland's most popular tourist destination in terms of visitor numbers, with numbers growing substantially each year, particularly in the budget travel and backpacking sector, assisted by the growth of Edinburgh Airport
Edinburgh Airport
Edinburgh Airport is located at Turnhouse in the City of Edinburgh, Scotland, and was the busiest airport in Scotland in 2010, handling just under 8.6 million passengers in that year. It was also the sixth busiest airport in the UK by passengers and the fifth busiest by aircraft movements...
and direct rail links
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
to the rest of the country. The annual Edinburgh Festival
Edinburgh Festival
The Edinburgh Festival is a collective term for many arts and cultural festivals that take place in Edinburgh, Scotland each summer, mostly in August...
attracts record numbers, as does the Hogmanay
Hogmanay
Hogmanay is the Scots word for the last day of the year and is synonymous with the celebration of the New Year in the Scottish manner...
street party each New Year, with over 4.4 million visitors attending Edinburgh's various festival events over 2009. The Edinburgh Festivals in August alone generate in excess of £100 million for the Edinburgh economy. Another component of Edinburgh's tourist industry is business and conference tourism, which generates in excess of £74m for the city. Edinburgh is the UK's most popular conference destination, ahead of both London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Glasgow
Glasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
. Visitors are attracted by the UNESCO World Heritage Sites of the Old Town and the New Town as well as the history and culture of the city most visible in tourist attractions such as Edinburgh Castle
Edinburgh Castle
Edinburgh Castle is a fortress which dominates the skyline of the city of Edinburgh, Scotland, from its position atop the volcanic Castle Rock. Human habitation of the site is dated back as far as the 9th century BC, although the nature of early settlement is unclear...
and the Palace of Holyroodhouse.
| Tourist attraction | Number of visitors | ||||||
|---|---|---|---|---|---|---|---|
| Edinburgh Castle Edinburgh Castle Edinburgh Castle is a fortress which dominates the skyline of the city of Edinburgh, Scotland, from its position atop the volcanic Castle Rock. Human habitation of the site is dated back as far as the 9th century BC, although the nature of early settlement is unclear... |
1,128,394 | ||||||
| National Gallery of Scotland National Gallery of Scotland The National Gallery of Scotland, in Edinburgh, is the national art gallery of Scotland. An elaborate neoclassical edifice, it stands on The Mound, between the two sections of Edinburgh's Princes Street Gardens... |
842,958 | ||||||
| Edinburgh Zoo Edinburgh Zoo Edinburgh Zoo, formally the Scottish National Zoological Park, is a non-profit zoological park located in Edinburgh, the capital city of Scotland... |
661,763 | ||||||
| National Museum of Scotland National Museum of Scotland The National Museum of Scotland, Edinburgh, Scotland, was formed in 2006 with the merger of the Museum of Scotland, with collections relating to Scottish antiquities, culture and history, and the Royal Museum next door, with collections covering science and technology, natural history, and world... |
614,894 | ||||||
| St Giles' Cathedral | 530,000 | ||||||
| Edinburgh Bus Tours | 517,793 | ||||||
| Royal Botanic Garden Edinburgh Royal Botanic Garden Edinburgh The Royal Botanic Garden Edinburgh is a scientific centre for the study of plants, their diversity and conservation, as well as a popular tourist attraction. Originally founded in 1670 as a physic garden to grow medicinal plants, today it occupies four sites across Scotland — Edinburgh,... |
505,325 | ||||||
| National War Museum of Scotland National War Museum of Scotland The National War Museum is housed in Edinburgh, and forms part of the National Museums of Scotland. It is located within Edinburgh Castle, and admission is included in the entry charge for the castle.... |
474,133 | ||||||
| Scottish Parliament Scottish Parliament The Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament... Visitor Centre |
323,722 | ||||||
| Our Dynamic Earth Our Dynamic Earth Our Dynamic Earth is a science centre in Edinburgh, Scotland. It is a prominent visitors attraction in the city, and also functions as a conference venue. It sits in the Holyrood area, beside the Scottish Parliament building and at the foot of Arthur's Seat.... |
298,288 | ||||||
| Source: Edinburgh by Numbers 2010/2011 http://www.edinburgh-inspiringcapital.com/invest/economic_data/publications/edinburgh_by_numbers.aspx | |||||||
Public sector
EdinburghEdinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
is the centre of Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
's government and legal system
Scots law
Scots law is the legal system of Scotland. It is considered a hybrid or mixed legal system as it traces its roots to a number of different historical sources. With English law and Northern Irish law it forms the legal system of the United Kingdom; it shares with the two other systems some...
. As a consequence many government departments and public sector agencies are headquartered in the city as well as the High Court of Justiciary
High Court of Justiciary
The High Court of Justiciary is the supreme criminal court of Scotland.The High Court is both a court of first instance and a court of appeal. As a court of first instance, the High Court sits mainly in Parliament House, or in the former Sheriff Court building, in Edinburgh, but also sits from time...
and the centres of Scotland's legal establishment. As a centre of Scots Law
Scots law
Scots law is the legal system of Scotland. It is considered a hybrid or mixed legal system as it traces its roots to a number of different historical sources. With English law and Northern Irish law it forms the legal system of the United Kingdom; it shares with the two other systems some...
, the legal profession has had a long presence in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, with many premises in the New Town belonging to legal practices and firms. Many ancillary economic undertakings and political pressure groups have thus set up around this new seat of government leading to a boom in the recruitment and employment of public sector officials. However, the Scottish Executive
Scottish Executive
The Scottish Government is the executive arm of the devolved government of Scotland. It was established in 1999 as the Scottish Executive, from the extant Scottish Office, and the term Scottish Executive remains its legal name under the Scotland Act 1998...
up to 2007 had a policy of relocating some of its departments from the city to other parts of Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
such as sportscotland
Sportscotland
Sportscotland , formerly the Scottish Sports Council, is the national agency for sport in Scotland. Their stated aim is to help everyone in Scotland enjoy sport's many benefits....
and Scottish Natural Heritage
Scottish Natural Heritage
Scottish Natural Heritage is a Scottish public body. It is responsible for Scotland's natural heritage, especially its natural, genetic and scenic diversity. It advises the Scottish Government and acts as a government agent in the delivery of conservation designations, i.e...
. Such relocations have lessened under the post-2007 Scottish Government. The City of Edinburgh Council and the National Health Service
National Health Service
The National Health Service is the shared name of three of the four publicly funded healthcare systems in the United Kingdom. They provide a comprehensive range of health services, the vast majority of which are free at the point of use to residents of the United Kingdom...
are also major employers in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
.
Education
EdinburghEdinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
is a major centre of education in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, and has been since the establishment of the University of Edinburgh
University of Edinburgh
The University of Edinburgh, founded in 1583, is a public research university located in Edinburgh, the capital of Scotland, and a UNESCO World Heritage Site. The university is deeply embedded in the fabric of the city, with many of the buildings in the historic Old Town belonging to the university...
in 1583, with another 3 major higher education institutions in the city developing later. Education and academic research (including medical research) plays a significant role in the economy of the city. The presence of these educational institutions also attracts many overseas students and those from the rest of the UK. Life Sciences
Life sciences
The life sciences comprise the fields of science that involve the scientific study of living organisms, like plants, animals, and human beings. While biology remains the centerpiece of the life sciences, technological advances in molecular biology and biotechnology have led to a burgeoning of...
and microelectronics
Microelectronics
Microelectronics is a subfield of electronics. As the name suggests, microelectronics relates to the study and manufacture of very small electronic components. Usually, but not always, this means micrometre-scale or smaller,. These devices are made from semiconductors...
in particular and have grown in prominence in recent years. The University of Edinburgh
University of Edinburgh
The University of Edinburgh, founded in 1583, is a public research university located in Edinburgh, the capital of Scotland, and a UNESCO World Heritage Site. The university is deeply embedded in the fabric of the city, with many of the buildings in the historic Old Town belonging to the university...
is a leader in the fields of medicine
Medicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
and law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
, and was a pioneer in British artificial intelligence
Artificial intelligence
Artificial intelligence is the intelligence of machines and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its...
teaching. Heriot-Watt University
Heriot-Watt University
Heriot-Watt University is a university based in Edinburgh, Scotland. The name commemorates George Heriot, the 16th century financier to King James, and James Watt, the great 18th century inventor and engineer....
specialises in science
Science
Science is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe...
and engineering
Engineering
Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...
and Napier University
Napier University
Edinburgh Napier is one of the largest higher education institutions in Scotland with over 17,000 students, including nearly 5,000 international students, from more than 100 nations worldwide.-History:...
in the fields of computing
Computing
Computing is usually defined as the activity of using and improving computer hardware and software. It is the computer-specific part of information technology...
and business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, as well as creative fields.
The city is also home to a number of independent schools, with around 1 in 5 school-age pupils attending private institutions.
Infrastructure
The city is linked internationally by Edinburgh AirportEdinburgh Airport
Edinburgh Airport is located at Turnhouse in the City of Edinburgh, Scotland, and was the busiest airport in Scotland in 2010, handling just under 8.6 million passengers in that year. It was also the sixth busiest airport in the UK by passengers and the fifth busiest by aircraft movements...
(EDI) which in 2009 saw more than 9 million passengers throughout the year. This makes Edinburgh Airport the sixth busiest in the UK, and in the year ending February 2010, it was the only airport in the top ten to report annual passenger growth. In terms of rail connections, Edinburgh Waverley railway station
Edinburgh Waverley railway station
Edinburgh Waverley railway station is the main railway station in the Scottish capital Edinburgh. Covering an area of over 25 acres in the centre of the city, it is the second-largest main line railway station in the United Kingdom in terms of area, the largest being...
is the principal mainline station in the city serving over 19.6 million passenger journeys over 2008-2009.
A new tram system
Edinburgh Tram Network
Edinburgh Trams is a tramway system which has been under construction in Edinburgh, Scotland, since 2008.There have been several delays and cost over-runs in the construction of the tramway. The new tram system was originally scheduled to enter revenue service in February 2011...
connecting Leith and Edinburgh City Centre with Edinburgh Airport is under construction and scheduled to be in operation by 2012.
Other issues
Property prices
Like much of the rest of ScotlandScotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, property prices have been rising for many years. Since the onset of the recession, prices in Edinburgh have declined at lower rate than the rest of the UK. As of February 2010, the average house in Edinburgh was valued at £228,268, which represents a 20 per cent annual increase, compared with the UK average of a 0.1 per cent decrease.
Regeneration
Derelict land and areas on the waterfront of Edinburgh at places like GrantonGranton
-Places:Australia* Granton, TasmaniaCanada* Granton, Nova ScotiaScotland* Granton, EdinburghUnited States* Granton, Wisconsin...
and Leith
Leith
-South Leith v. North Leith:Up until the late 16th century Leith , comprised two separate towns on either side of the river....
are in the process of being regenerated to make way for mixed commercial, residential and industrial developments to further provide for the forecast growth of the city.
Urban growth
In an economic sense Edinburgh is constrained by its relatively small size, and that there are economic benefits to be had with greater collaboration with surrounding areas such as GlasgowGlasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
. Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
itself is ringed by greenbelt
Green Belt (UK)
In United Kingdom town planning, the green belt is a policy for controlling urban growth. The idea is for a ring of countryside where urbanisation will be resisted for the foreseeable future, maintaining an area where agriculture, forestry and outdoor leisure can be expected to prevail...
land, which has seen developments such as the offices at Edinburgh Park
Edinburgh Park
Edinburgh Park is a business park located in South Gyle, Edinburgh, Scotland. It is located to the west of the city, near Edinburgh Airport and the Edinburgh City Bypass. The layout of the park was masterplanned by American architect Richard Meier, and it opened in 1995...
and housing and commercial developments to the south of Edinburgh spring up on it.