EDINBURGH is set to snub New York's Tartan Week celebrations for the first time, as city leaders say the Capital does not gain anything from the event.
Council chiefs said they could not justify sending representatives to New York because there was nothing in it for Edinburgh.
Deputy council leader Steve Cardownie, the city's festivals and events champion, said: "There has been a lot of criticis
m in the past of the kind of impact that Tartan Week has in terms of benefiting Edinburgh. I'm not sure we've seen much benefit at all."
Council leader Jenny Dawe, who has been to Tartan Week twice, said: "I do feel it is hard to justify a big presence, unless there is a particular theme we can buy into.
"We don't want to close the door on future participation but I don't think we want to commit anything in the current financial climate."
The move comes as the Scottish Government revealed the council is unlikely to receive any funding for next year's Tartan Week.
Last year the council secured £70,000 from Holyrood for a string of initiatives aimed at showcasing Edinburgh and its festivals. The council spends an average of £10,000 on Tartan Week activities every year and it has been attended by various city dignitaries including former Lord Provost Lesley Hinds.
But council officials are recommending Edinburgh pulls out this year, ahead of Alex Salmond's SNP administration announcing the results of a major review into the funding of Tartan Week events.
Resources from Holyrood are expected to be ploughed into efforts across North America during Tartan Week rather than be focused in New York.
Civil servants are said to have warned funding will no longer be awarded to initiatives promoting particular parts of Scotland.
A report for Edinburgh's councillors states that of 47 companies who attended a Fringe showcase in New York during last year's Tartan Week, 35 were able to stage shows in Edinburgh last month.
But in his report for councillors, director of corporate services Jim Inch said: "The Scottish Government's approach to Tartan Week activity next year is currently under review.
"They've indicated they are considering spreading activity over a number of cities in North America, focusing on a business agenda and ministerial meetings.
"It's very unlikely that they will give specific financial support to council activity and events promoting an Edinburgh-specific agenda."
One senior council source said: "It's clear the new government has new priorities for Tartan Week and it's difficult for the council to justify a big investment without any support from elsewhere."
Ewan Colville, VisitScotland's marketing manager for North America said: "Although plans for Tartan Week '08 are still being finalised, Edinburgh, as Scotland's most popular city for US visitors, will be at the forefront of our activity."
A spokeswoman for the Scottish Government said: "We're currently reviewing the Scottish Government's engagement with Tartan Week to strengthen our links with North America and maximise the benefits for Scotland in terms of business, tourism and culture.
"Plans for next year will be set out over the coming months."