Alexander Forrest, who was 20 and from Saughton, suffered “severe head injuries” and died while on holiday in Magaluf.
The British Heart Foundation worker is believed to have fallen from the third floor balcony of BH Mallorca hotel on August 31, just four days into his holiday on Majorca.
According to friends, his insurers are refusing to pay the £4,000 cost of flying his body back to the UK.
So they have set up a Just Giving page which has already raised £3,470 towards the target in under 24 hours.
Writing on the page, Josh Candy said: “Alexander Forrest went on holiday to Magaluf in Majorca with 2 friends.
“Unfortunately due to a horrendous accident Alex hasn’t made it home. On the 31st of August 2016 Alex was found and pronounced dead. Alex had suffered severe head injuries and died instantly.
“As of Wednesday, Alex’s mum had to be flown out to Magaluf to try get Alex home. After obstacle after obstacle, Alex’s travel insurance will not pay out to get Alex home. (Jet2’s Rock Insurance)”.
Josh, who is believed to have been on the holiday, added: “We now as a group of close friends want to raise as much as we can to support his mum to get Alex home. We all understand it’s a lot of money to raise. Anything and everything, anyone and everyone can afford to donate would be amazing.”
Josh said: “I want to thank everyone for such an amazing response and the generosity shown.
“People that didn’t even know Alex have donated huge amounts and it is amazing.”
A spokesman for the Foreign Office said: “We are providing support to the family of a British national who has died in Majorca on 31st August and are in contact with local authorities.”
Friends left their own heart-felt tributes on Facebook.
Dean Rutherford wrote: “R.I.P Alex, quite shocked to have heard what happened. Never thought it would happen so much an amazing man.
“Will never be the same walking into Daniel’s house on a weekend and not seeing you there having a drink!”
Max Robertson said: “Alex Forrest sleep tight old friend. Will never forget you.”
And John Wilson commented: “He was the happiest boy I’ve ever met. God only takes the best bro.”
Another of his holiday pals, “Daniel Mo”, posted a picture of Alexander on holiday wearing pants with the caption: “Words can’t yet explain how I feel but here is a picture of when Alex realised he’d brought pants instead of boxers. His face says it all. Love you brother.”
A spokeswoman for Jet2holidays said: ““We would like to offer our sincere condolences to Alexander’s family and friends at this difficult time.
“We were only made aware today that Alexander is still in Majorca, and we understand that the insurance company is still investigating this tragic incident.
“As this is a private matter between the insurers and the Forrest family, we cannot comment on that investigation.
“However if, for any reason, the insurance company cannot arrange for Alexander’s body to be returned home we will arrange this ourselves, at no cost to the Forrest family.”