Orkney Visitor Levy

Orkney has a population of approximately 22,500 people and welcomes around 450,000 visitors who contribute more than £114M a year to the local economy. However, continuing tourism growth puts pressure on our public services and facilities, natural and cultural heritage and local communities.

On 20 September 2024, the Visitor Levy (Scotland) Act 2024 came into force, giving new discretionary power to local authorities to introduce a visitor levy on overnight stays for the purpose of generating revenue to develop, support or sustain facilities and services which are substantially for or used by people visiting the scheme area for leisure or business purposes (or both).

By enabling local authorities to invest more in tourism facilities and services, the new legislation represents a potentially transformational opportunity to generate benefits for local communities and visitors.

Visitor Levy Feasibility

It is not mandatory for the Council to introduce a visitor levy. However, with growing tourism pressures and shrinking public sector budgets, the Council has to investigate options that could help to support services and infrastructure that both residents and visitors enjoy.

A visitor levy could provide the means of increasing the value of tourism for the benefit of all, enabling a more sustainable approach to tourism.

In September 2024, the Council committed to investigate the feasibility of a visitor levy scheme for Orkney.

This includes a formal engagement process with local communities, tourism businesses and organisations and other stakeholders which will take place throughout March and April 2025 to understand potential impacts and help shape the design of a future scheme if progressed.

A cost-benefit analysis – measuring the benefits of a scheme versus the associated costs – will also be undertaken. The findings of the feasibility investigations will then be presented to Councillors to inform a decision on whether to follow other councils in introducing a visitor levy.

Cruise Ship Levy

Current legislation does not allow cruise ships to be charged a visitor levy. However, the Scottish Government has committed to consult on a potential cruise ship levy.

The first of four initial roundtable discussions on the matter were held in Orkney on 5 September 2024.

In February 2025, the Scottish Government launched a public consultation to explore options for a Cruise Ship Levy for local authorities. Further information can be found on the Scottish Government’s Cruise Ship Levy webpage and consultation responses can be submitted using the Scottish Government’s consultation hub, Citizen Space. The consultation closes 30 May 2025.

Motorhome Levy

Current legislation does not allow motorhomes to be charged a visitor levy unless they stay in registered camping sites or caravan parks. However, the Scottish Government is open to exploring the feasibility of introducing further powers that would enable local authorities to apply a levy on motorhomes.

Next Steps

Before deciding whether to introduce a visitor levy scheme in Orkney, the Council will engage with stakeholders to develop an understanding of related issues and concerns, and to carefully assess risks and potential impacts on the visitor economy. This will also help to inform the design of a scheme that works for Orkney, if progressed.