Council supports a locally-controlled cruise ship tax to enhance local services and infrastructure.
Topics covered
Introduction to the proposed cruise ship tax
The Orkney Islands Council has recently expressed its support for a locally-controlled cruise ship tax, a move that could potentially generate over £1 million annually. This initiative aims to provide additional funding for local services while fostering relationships with cruise industry stakeholders.
With the increasing popularity of Orkney as a cruise destination, the council believes that implementing such a levy is both timely and necessary.
Impact of cruise tourism on Orkney
Orkney has witnessed a remarkable surge in cruise traffic, with a staggering 237% increase since 2014, making it the UK’s most sought-after cruise ship destination.
Last year alone, the islands welcomed 213,785 cruise visitors. A report presented to the council indicated that charging each visitor a nominal fee of £5 could have generated approximately £1,068,925. This influx of tourists significantly contributes to the local economy, with cruise passengers accounting for nearly half of all visitors to the region.
Benefits and challenges of the proposed levy
The proposed cruise ship tax is seen as a means to address the growing challenges posed by the cruise sector, particularly regarding infrastructure strain and the council’s tightening budget. By allowing visitors to contribute directly to the areas they explore, the levy could facilitate the implementation of additional funding mechanisms that may not be feasible on their own. However, there are concerns that such a tax could deter cruise companies from visiting, potentially impacting the overall tourism landscape.
Council’s stance and future considerations
In response to a Scottish Government consultation, the council indicated its support for levy powers, emphasizing the need for flexibility in any proposed tax structure. Councillor Leslie Manson highlighted the mixed feelings within the community regarding cruise tourism, noting that while some residents oppose it, many others appreciate the economic benefits it brings. Furthermore, Councillor Rachael King proposed that any cruise levy should not hinder the exploration of additional levies on motorhomes and day visitors, indicating a broader approach to tourism funding.
Clarifying the distinction between ferries and cruise liners
During discussions, some councillors raised questions about how different types of levies would affect local residents, particularly concerning internal ferries. Councillor Steven Clackson sought clarification on whether ferries would be classified as cruise liners, emphasizing the distinction between transport links and cruise accommodations. Council officials confirmed that ferries would not be subject to the proposed cruise levy, alleviating some concerns among the councillors.
Conclusion
The Orkney Islands Council’s consideration of a cruise ship tax reflects a proactive approach to managing the impacts of increasing tourism. By generating additional revenue for local services, the council aims to strike a balance between welcoming visitors and addressing the needs of the community. As discussions continue, the focus remains on ensuring that any levy structure is fair, flexible, and beneficial for both residents and tourists alike.
