Council backs cruise ship levy

As part of a response to an upcoming Scottish Government consultation, Orkney Islands Council has given its backing, in principle, to the introduction of new discretionary powers for local authorities to charge a levy on visiting cruise ships. 

In September and October 2024, the Scottish Government held a series of round table events with stakeholders to discuss issues and concerns relating to a cruise ship levy. The first event was held in Orkney on 5 September 2024. 

The Scottish Government is expected to launch a 12-week public consultation on a cruise ship levy this month (February) and at today’s Policy and Resources Committee meeting Councillors were asked to agree a consultation response. 

The Council’s Team Manager (Sustainable Tourism), Christie Hartley, said: “Recognising that the timeframe of the upcoming consultation may not allow the Policy and Resources Committee to consider the Council’s response within another committee cycle, a draft response has been prepared, proposing the Council’s position. 

“The consultation response has been formulated by the Sustainable Tourism team in collaboration with the Harbour Authority, and contributions invited from Councillors and other Council officers. 

“It is understood that once the consultation has concluded and responses have been considered, the Scottish Government will then confirm whether legislation will be progressed to enable a cruise ship levy for local authorities.” 

Council Leader, Councillor Heather Woodbridge, said: “During the visitor levy public consultation that led to the new legislation for local authorities to introduce a levy on overnight accommodation, there was a push for consideration to be given to how a levy might be applied to cruise passengers. 

"Orkney’s cruise offering is first class, and we recognise that as tourism continues to grow and public sector budgets are stretched, the proceeds of a cruise ship levy could allow local authorities to maintain essential services and infrastructure. 

“A cruise ship levy could support improved visitor management and development that harnesses the opportunities of cruise tourism to both enhance the visitor experience and improve the wellbeing of our island communities. 

“We must also be clear that a cruise ship levy should not replace other existing funding streams.  

“Assuming it goes ahead, I understand there will be further opportunities for the Council and other stakeholders to engage with the Scottish Government on the finer details of the legislation before it is introduced. 

“The upcoming local stakeholder engagement on feasibility of an overnight visitor levy for Orkney will also investigate stakeholder views on a cruise ship levy, which can feed into future Scottish Government consultations.” 

A seminar will be scheduled for May 2025 to present the findings of the visitor levy feasibility investigations to Councillors and discuss the implications of the introduction of an overnight visitor levy and a cruise ship levy in Orkney. 

For the most up-to-date information please head over to the Council’s Visitor Levy webpage.