Cruise Scotland warns government against ‘damaging' levy proposal
The Scottish cruise industry has lashed out at the government's proposals to introduce a cruise ship levy over fears it would deter cruises from visiting its ports.
The Scottish Government announced earlier this year that it is considering a proposal to allow local authorities to create a visitor levy on cruise ships docking at its ports.
During the consultation, Cruise Scotland, a membership-based marketing organisation that represents key cruise industry players, issued a warning to the Scottish Government that the levy could damage the sector.
The organisation expressed its concern in its formal submission to the government consultation on implementing a cruise ship levy, saying that cruises will become discouraged from visiting Scottish ports.
'Scotland must decide whether it wants to attract or deter a sector that delivers over £130m annually to the national economy and sustains jobs in some of the most remote and economically vulnerable communities,' Rob Mason, chair of Cruise Scotland, said.
Mr Mason also claimed that if the levy was mishandled, it could result in job losses, cause a slump in local business growth and disrupt a tourism model that benefits communities.
Cruise Scotland said that the government's plans are so far too ambiguous, stating that prolonged uncertainty regarding the levy is 'damaging' as cruise operators cannot plan accordingly.
The group also warned against creating devolved powers for individual councils to implement the levy, as it claimed this would create competition between areas and would require port authorities to function as tax collectors.
'We must remember that this is a movable market that does not need to come to Scotland, despite all we have to offer, and neighbouring regions in the North Atlantic and Northern Europe are strongly positioned to benefit from any displacement,' Mr Mason added.
While the chair said Cruise Scotland 'fully acknowledges' the need for targeted investment, he called upon the government to be more transparent in its decisions around the levy and asked for 'close collaboration' with the industry. The organisation said it remains engaged in discussions with policymakers.
Cruise Scotland says that 1.1 million passengers visited Scottish ports in 2024, contributing over £130 million to local businesses and communities.
Kirsty Hutchison, Cruise Scotland's market development manager, said that this number could see a drop if a levy were implemented.
'Introducing a levy could send the wrong signal to cruise operators at a time when Scotland is successfully growing its reputation as a responsible and attractive destination,' Ms Hutchinson said.
'The evidence from other markets suggests that a levy risks reducing visitor numbers, along with the significant revenue and opportunity they bring.'
The levy has received support in other areas. The Scottish Greens are in favour of the potential to cut climate emissions, while the Orkney Islands Council said it would welcome the revenue it would generate for the communities.
The consultation on the levy has now closed, and responses will be analysed over the summer to inform ministers the next steps they can take.
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