Cruise ship passengers docking in Scotland set to be slapped with extra tourist tax

Scottish Sun

7 days ago

CASHING IN Cruise ship passengers docking in Scotland set to be slapped with extra tourist tax
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CRUISE ship passengers are facing a levy to land in the Highlands, after the region's council backed the tax.
A Scottish Government's consultation closes at the end of this month.
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Cruise ship passengers are facing a levy to land in the Highlands
Credit: The Sun
It has proposed giving local authorities new powers to charge the levy.
It says money raised could be invested into facilities the ships and their passengers use, or be left to local authorities to decide where the funds are spent.
The Highland Council has now issued its support.
A meeting of the council's Economy and Infrastructure Committee today heard that such a levy could provide additional funds to mitigate the impacts of tourism and ensure the area remains a world-leading and sustainable visitor destination.
Chair Ken Gowans, said: 'The Highland Council supports the introduction of discretionary powers for local authorities to implement a cruise ship levy, recognising its potential to generate recurring revenue to mitigate tourism-related pressures and sustain local infrastructure.
'Such a levy would empower communities to reinvest in services and help develop the Highlands as a world-class, sustainable destination all at no cost to Highland Council taxpayers, something everyone across our communities will welcome.
'Should such powers be granted, the Council will then undertake further extensive analysis and engagement to inform future decision-making.'
While the growth of the cruise ship sector has been welcomed and contributed to the economy, as with all visitors, cruise ship passengers can place significant pressure on local infrastructure and services.
If implemented, such powers would be the first in the UK although cruise ship levies are already in place internationally, including Amsterdam, Barcelona, Dubrovnik and Venice.
Members agreed that any levy should be based on the number of passengers per ship, and cruise ship operators would be the most suitably placed to collect the levy from passengers for remitting to the local authority.
The cruise line loved by foodies where every restaurant is free onboard
The committee said local authorities should decide the rate of any levy, with revenue raised retained and used strategically within that same area. This would enable funds to be dispersed where visitors visit within the implementing local authority area and improve the wider tourist experience.
The Scottish Government's consultation also proposes that local authorities with islands be given the power to charge a levy on those arriving to visit an island, regardless of the means of transport by which they arrived.
In response, The Highland Council has strongly encouraged the Scottish Government to not focus solely on islands and instead to introduce a point of entry levy for all of Scotland, enabling all Scottish local authorities to exercise their discretion to introduce a Point of Entry levy within their geographical boundaries.
In addition, The Highland Council is preparing a proposition based on a means of having the ability to charge at points of entry into the Highlands, which will go some way to address the impacts of motorhomes and campervans.
In 2023, passenger numbers to Highland ports reached almost 300,000 and the gross tonnage of cruise vessels hit the 10,000,000 GT mark.
Within Highland there are 16 ports and harbours with cruise ship activities. These range in type, size and capacity from the Port of Cromarty Firth in Invergordon, which is a trust port and the busiest cruise ship port in Scotland, to Shieldaig which is a rural municipal harbour accommodating only one or two small cruise ships each year.
In 2019, 893 cruise ships docked in Scottish ports, carrying 817,000 passengers and by 2024 this had increased to 1,000 cruise ships carrying 1.2 million passengers with the busiest day seeing 9,600 visitors arrive in the Port of Invergordon.
Existing levy rates across European ports range from approximately €3-14 per passenger.
In 2019 The Highland Council engaged in a public visitor levy consultation, the outcome of which resulted in a decision to support 'in principle' the introduction of a visitor levy.
But the operators of Invergordon's Port of Cromarty Firth are strongly opposed to a new tax.
The port expects to welcome almost 100 liners this year, carrying a total of 150,000 passengers.
Cruise ships already pay charges for berthing at Invergordon's wharfs and quays, and port bosses any extra burden might put cruises off from visiting.
The port's research suggests a levy of £5 per passenger, for example, would increase the cost to those ships by 23%.
It has also estimated this would lead one in 10 cruise businesses to choose an alternative destination.
The research suggests passengers spend a minimum of £100 per visit, meaning potentially millions of pounds could be lost to the Highland economy, the port argues.
Joanne Allday, of Port of Cromarty Firth, said all kinds of businesses could be affected
Joanne Allday, the port's head of strategy and business, says she is worried the effect of the extra costs would filter down through the local economy.
"A lot of the work around the cruise industry is seasonal work," she said.
"It's people working in shops, it's taxi drivers, it's tour guides.
"It's these people who are likely to suffer."
She added: "We don't understand the economic rational for bringing in a levy".