Hogmanay party remains on Princes Street

EDINBURGH's Hogmanay celebrations are to remain on Princes Street for the foreseeable future after a major review of the event ruled out relocating the festivities.

Council officials have also ruled out scaling back the event any further to avoid damaging the event's prestige and world-wide reputation.

The annual street party's capacity had been cut from 100,000 to 80,000 in the last two years in a bid to keep costs down and in the wake of a slump in ticket sales.

However, the review has ruled that staging the street party on Princes Street is "the only viable option" to ensure the celebrations deliver their current economic benefit.

Senior councillors also vowed yesterday that they would ensure there was no disruption to the event from tram works, with the earliest start date for work on Princes Street put back from early next month to September.

Councillors had asked for a probe into the event amid concern about the 1 million cost to the council of staging the event, the centrepiece of the city's Hogmanay festival, which has been running since 1993-4. The full budget for the event last year was 1.45m.

It has also emerged that Unique Events, the Edinburgh-based firm which has produced the festivities since their inception, has been given an extension to its contract for another two years, until the 2012-13 event.

A new report has revealed that last year's celebrations generated 27m - 3m more than the previous year - despite the run-up and ticket sales being affected by the freezing conditions in December.

The council has also revealed that the forthcoming festivities will have an Olympic theme and will be the first major event held in Britain in the run-up to the London Games.

The Scottish Government has already awarded the council 250,000 to help pay for a major new sporting event which will be held in the capital on New Year's Day.

Steve Cardownie, the city's festivals and events champion, said: "I don't really see how you could have the event anywhere other than Princes Street.

"It's the natural place for a party like this with the fantastic backdrop of Edinburgh Castle and Ramsay Garden. Princes Street is also the best-known street in the city, it's not going to have the same gravitas if you took it elsewhere.

"It wouldn't be right to scale it back any further. If you are inviting people here from all over the world you have got to accommodate them properly and give them a proper welcome."

The council review said last year's events attracted some 137,000 people, including 70,000 on Princes Street on Hogmanay and 25,000 at the opening torchlight procession event.Officials said tickets for the street party, which were increased from 10 to 15 last year, had been on track for a sell-out until the extended spell of extreme weather, which hit in late November.

It has emerged that First Minister Alex Salmond stepped in to offer extra help to the city from his officials and VisitScotland to ensure the event was still a success.

The city council has reported that 85 journalists and broadcasters from as far afield as China, Japan, the US and South Africa attended the event, with footage from the midnight fireworks shown in some 150 countries. A recent study found it was the city's fourth most lucrative event, after the Tattoo, the Fringe and the Edinburgh International Festival.