SCOTLAND'S economy benefited by (pounds) 8.9m through Edinburgh hosting the MTV Europe music awards, it was announced yesterday.

The extravaganza, hosted by Christina Aguilera and featuring stars such as Beyonce, Justin Timberlake, Kylie Minogue and Travis, was held at Leith last November.

An economic impact study showed that the event yielded double the expected windfall during the week of the event.

The report on behalf of Edinburgh City Council, Scottish Enterprise Edinburgh and Lothians and EventScotland also revealed the awards and the free concert in Princes Street gardens were worth (pounds) 6.4m to the capital.

A further (pounds) 300,000 was spent in the Lothians, with an additional (pounds) 2.2m generated across Scotland as a whole.

Initially, organisers estimated the show would bring in just over (pounds) 4m.

Frank McAveety, the minister for tourism, culture and sport, said Edinburgh and Scotland had benefited immensely from the awards.

He said: ''This was a hugely successful event, with the short-term economic benefits twice as high as was forecast.

''And we should not forget the long-term benefits we can expect, as this occasion delivered a global profile for Scotland as a world-class location for tourism and business.

''We can now look forward to building on this success to attract other world-class events.''

The study was carried out by SQW, independent consultants.

Bruce Macdonald, associate director of SQW, said that in addition to the extra money generated at the time of the awards, worldwide television coverage was worth an estimated (pounds) 8.6m in advertising, while worldwide print coverage was worth about (pounds) 4.8m.

The analysis also found that the awards featured in more than 2000 newspaper articles which were carried by 928 publications in 19 countries.

Occupancy rates in Edinburgh's hotels were 26% above normal levels during the week.

A survey of the city's retailers showed that 37% said their takings had risen, 37% reported no change, while 25% said their revenue had declined.

Mr Macdonald added: ''MTV has provided Edinburgh and Scotland with a terrific platform to go on and continue to raise the profile of the country.''

Jim McFarlane, chief executive of Scottish Enterprise Edinburgh & Lothians, said the city had enjoyed phenomenal coverage during the week.

He said: ''Thanks to the MTV Europe music awards, Edinburgh is now portrayed as a thriving, dynamic, vibrant city, balancing its heritage and culture together with the needs of a modern twenty-first century city.''

Donald Anderson, council leader, said Edinburgh could now compete with the likes of London, Barcelona and Paris as a venue for world events and criticised those who attacked the executive and the council for supporting the awards with funding of (pounds) 750,000.

He said: ''This report puts paid to the suggestions from those who did not think it was a good idea, that the awards were not worth the public-sector investment.''

Mr Anderson also said Edinburgh was enjoying a honeymoon effect, with hotel occupancy rates at a record 68% last month.

In December, Edinburgh was presented with an MTV music award as a thank-you from the event organisers for the way in which the city staged the event.

Richard Godfrey, executive producer of MTV Europe said: ''Edinburgh was such a great location for us. We managed to include the city and some Scottishness into the show, without offending anybody and coming back again has reminded me of how good it was. We are delighted the partnership has resulted in so many positives.''