23-05-2025
Plans for Venice-style tourist fees extended to Isle of Skye
More Scottish islands are considering a Venice-style tax on visitors as local authorities look to cope with booming summer tourism.
This month senior officials in Orkney said they would prefer a point-of-entry levy for everybody who gets off a plane, ferry or cruise ship on the archipelago, including day trippers.
Now Highland council has signalled an interest in this kind of payment for its islands, which include the globally trendy Skye.
Scotland has already legislated for councils to impose levies on overnight stays in hotels and holiday lets. Now the government is consulting on additional taxes on cruise ship passengers — and is asking local authorities how they would feel about a point-of-entry levy.
In a paper to go before councillors this week, officials suggested such a scheme might help them to tax motorhomes, which are not subject to existing tourism taxes.
They said: 'The Scottish government's consultation invites views on a potential point of entry levy for local authorities with islands.
'This could involve giving local authorities with islands discretionary powers to charge a levy on those arriving to visit an island, regardless of the means of transport by which they arrived. While more discussion is required with the Scottish government to confirm the definition and policy intent of points of entry, should such powers be legislated, then this may provide the legislative vehicle to levy motorhomes and campervans.
'To ensure the levy is properly understood by all, the naming of the levy will be important, particularly given a point of entry levy could potentially apply regardless of the means of transport.'
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Skye is linked to the mainland by a bridge while other Highland islands, such as Eigg and Rum, are connected by ferries.
The Orkney authorities believed a point-of-entry tariff would be easier to collect than an overnight one because there were very few transport operators, including cruise operators.
The islands can struggle to cope with visitors. Their capital Kirkwall sometimes doubles in population due to cruise ships. There have been problems handing the sheer volume, including providing toilet facilities at big attractions, such as the neolithic Ring of Brodgar.
Not everyone supports cruise ship levies.
A study by the Port of Cromarty Firth highlights the potential for the policy to harm Scotland's reputation as a tourist destination.
There were more than 100 ships which visited the Invergordon port last year and those collectively carried 213,000 passengers. The port estimates that activity contributed to £19 million of direct spending in the Highlands.
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In its submission to a Scottish government consultation on a new tax, the port warns the money raised would not offset a drop in passengers and spending.
Holyrood ministers are looking at giving local authorities powers to introduce a charge which could be £5 per passenger.
The port believes that tariff would increase costs for cruise ships by more than 20 per cent and reduce visits by at least 10 per cent.
Under that scenario the levy would raise about £863,000 but result in a spending drop in the local economy of £2.4 million.
A 30 per cent fall in vessel numbers would result in £671,000 of tax being collected but revenue would shrink by £7.3 million.
Alex Campbell, the chief executive of Port of Cromarty Firth, said: 'If the Highlands introduces a levy locally while other areas visited by cruise ships do not, this will displace visitors and revenues to other parts of Scotland with the local Highland communities losing out.
'The cruise industry makes a much-needed multimillion-pound contribution to the Highland economy every year and provides a vital source of income to a wide range of businesses.
'In turn, through the wages of workers and employees and the profits generated by the supply chain that benefits from cruise, it raises tax revenues for Scottish and UK governments.'
The Scottish government estimated there were about 1,000 cruise ship visits last year bringing in 1.2 million passengers.
That was up from 2019 when 893 vessels brought 817,000 people.
