The Scottish Government has been warned against introducing levies on cruise ships as a consultation on the proposals comes to a close.
Holyrood has said that, in 2024, there were approximately 1000 cruise visits to Scotland, with a combined passenger capacity of 1.2 million people.
That was an increase from 2019, which attracted 893 cruise ship calls and around 817,000 passengers.
Invergordon, Orkney, Edinburgh, Lerwick and Greenock were the areas with the largest numbers of cruise ship visitors.
On the back of these numbers – and following the Scottish Government’s introduction of the Visitor Levy (Scotland Act), which allowed local authorities to impose visitor levies (or a ‘tourist tax’) – ministers are now mulling giving local authorities similar powers regarding cruise ships.
It has stated that there would be no nationwide levy, but rather the power would be devolved to each authority.
Finance secretary Shona Robison said a consultation, which closed on 30th May, would ‘help to inform the Scottish Government’s decision over whether or not to bring forward legislation and it is really important that we hear from a wide variety of voices on this matter’.
However trade group UKHospitality Scotland, which responded to the consultation, warned that a levy could damage the local economies in areas that currently benefit from cruise ship visits.
The group said that, although cruise ship visitors only make up 0.5% of total tourism visits to Scotland, those visitors generated £130 million to local economies around Scotland in 2023.
“The cruise industry is a major contributor to the Scottish economy and a key part of regional growth, supporting businesses across the country, as well as thousands of jobs,” said Leon Thompson, executive director of UKHospitality Scotland.
“The majority of these jobs are in hospitality and tourism, in businesses that benefit from these visits.
“Many hospitality businesses have adapted their offer to tap into this lucrative market.
“For many this is an essential part of revenue generation, extending the season and bringing visitors that would otherwise not have materialised.
“This all helps hospitality play its part in regenerating communities around our coast and on our islands. It is therefore essential that the Scottish Government consider what might be at stake if a levy, or series of local levies, were to be introduced.
“At a time of increased competition for cruise tourism, Scotland must not be priced out of the market and lose the clear advantage the country has, along with the economic growth and jobs it delivers.
“Applying a charge to visitors to islands needs careful consideration.
“It is already more expensive to visit our islands, so why seek to increase those costs and deprive island communities of economic opportunity?”
