Cruise ship levy splits views in busy Highland port
An estimated 1.2 million cruise ship passengers visited Scotland last year, according to Scottish government figures.In Invergordon - one of Scotland's busiest ports in 2024 - views are divided on the government's suggestion of taxing these visits in the future to raise funds for cash-strapped local authorities.
The fine detail of the proposed cruise ship levy - such as how much would be charged and who would pay - has still to be agreed.But the consultation on the idea is the source of some fierce debate.Sandra Munro, who runs the Tanstar gift shop on the town's High Street, is worried about the impact of a levy on small businesses.She says: "Everyone is struggling just now."People are still going on holiday but they maybe don't have the same amount to spend," she said."So if more charges are put on them it might stop them coming altogether or they maybe won't have the same pennies to spend in the shops."
But others argue passengers only pass through Invergordon on their way to visiting other parts of the Highlands before returning to continue their cruise.Local resident Donald Macdonald says a levy could potentially help the town, if the money was spent in the right way.He says: "We're not seeing any benefit at the moment. "There are a lot of people struggling here. There is no work."The passengers are going away on all these tours. Maybe some of them will get a couple of hours to spend in the town."Donald says Invergordon needs investment.He adds: "Where's the money to repair the roads?"
The Scottish government's consultation closes at the end of this month.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.Scotland's councils are struggling financially.Earlier this week, the Accounts Commission warned local authorities are facing a £647m budget shortfall this year despite an increase in government funding.The Scottish government has left it open as to how much the rate should be and who pays - the passengers or the cruise ship operators.
Jorge Marin and Maria Snijders, visiting Invergordon on Preziosa, a cruise liner which can carry more than 4,000 passengers, say they would not mind paying a small levy if it benefited the local community. "I am from Mexico," says Jorge."It is a very touristic place as well and to keep ensuring quality we need to have investment."He adds: "I find it (a levy) correct. You are going to be hosting me. It's not a big amount. I think it is a fair thing."Maria, from the Netherlands, also thinks it is a good idea.She says: "It is good to pay something. When you go to Spain in a hotel you pay taxes so why not on a cruise ship. It is not so much. "So why not a little bit of taxes?"
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 of 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, 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 says."It's people working in shops, it's taxi drivers, it's tour guides. "It's these people who are likely to suffer."She adds: "We don't understand the economic rational for bringing in a levy".
'Crying wolf'
But a leading figure at Highland Council - which is consulting separately on another proposed tourist tax - says the region needs investment.Vice convener Ken Gowans says the cruise ship levy is still at a "very early stage".He adds: "What often happens when people hear the word levy there's a knee jerk reaction. "The Port of Cromarty Firth need to consider whether they are crying wolf" "The large number of cruise ship passengers that arrive at Invergordon and clearly that puts additional pressure on our infrastructure."Mr Gowans adds: "So anything we can do to help mitigate that such as a cruise ship levy would be very welcome and it would certainly save the Highland council tax payer considerable sums."
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