A proposed GBP 5 levy on cruise ship tourists arriving in Orkney Scotland could generate GBP 1+ million annually, according to discussions at a recent council meeting.
The Scottish government is evaluating new powers that would enable local councils to implement such charges.
Orkney Islands Council has expressed its support in principle for introducing discretionary taxation powers for local authorities. During a meeting of the policy and resources committee, councilors were informed that revenue from the levy could be allocated to infrastructure improvements and essential services, given the high volume of cruisers.
Council members were advised that additional income from the levy could help mitigate the impact of high-volume tourism on local infrastructure and the environment, particularly at historic sites. It was also clarified that local ferry users would not be subject to the proposed tax.
Council leader Heather Woodbridge highlighted Orkney’s strong cruise tourism sector and acknowledged the financial pressures of maintaining public services amid increasing visitor numbers. She indicated that a cruise ship levy could provide local authorities with resources to manage tourism more effectively while preserving the well-being of island communities.
Councillors have formally endorsed Orkney’s response to the Scottish government, supporting future taxation powers on cruise vessels.
In 2023, Orkney welcomed 210,000+ cruise ship tourists.
Orkney Island's largest cruise ports are Kirkwall and Stromness.