With spending under pressure, Orkney Islands Council is looking favourably upon a visitor tax which would include cruise ships.
Speaking about a cruise ship visitor tax Leader of OIC Council Leader, Councillor Heather Woodbridge, said:
“During the visitor levy public consultation that led to the new legislation for local authorities to introduce a levy on overnight accommodation, there was a push for consideration to be given to how a levy might be applied to cruise passengers.
“Orkney’s cruise offering is first class, and we recognise that as tourism continues to grow and public sector budgets are stretched, the proceeds of a cruise ship levy could allow local authorities to maintain essential services and infrastructure.
“A cruise ship levy could support improved visitor management and development that harnesses the opportunities of cruise tourism to both enhance the visitor experience and improve the wellbeing of our island communities.
“We must also be clear that a cruise ship levy should not replace other existing funding streams.”
Orkney has been well ahead of other destinations for Cruise Ships in Scotland with a very slick welcoming operation including bus operators whisking visitors off to a few selected tourist hot spots in the islands. Qualified tour guides take smaller groups around, including walking and wildlife tours. Extra public bus services were added in summer 2024 generating significant extra income.
The success of Orkney’s cruise operation has, however, created its own set of problems with the popular visitor sites becoming overcrowded at peak times. The Ring of Brodgar suffers from the effects of erosion from the footfall of hundreds of thousands of feet tramping round the UNESCO World Heritage Site. The inner ring is now rarely accessible and preventative measures to repair the damage to the pathways is costly.
Cruise ship visitor numbers Orkney
*subject to change
The amazing recovery Orkney made as a cruise ship destination after the restrictions of the Covid-19 pandemic is testament to how well the sector is organised in the county.
It was estimated in 2023 that the cruise industry injects £12-15 million annually in the local economy. “In 2023, 41 cruise lines booked to visit Orkney, making it the number one transit call location for cruise in the UK.” Orkney’s cruise sector.
If a visitor tax on each passenger visiting Orkney on a cruise ship was introduced the amount raised would be considerable, but only if the islands continue to hold the spot as the top destination. Many other ports in Scotland are now offering facilities to cruise companies with touring opportunities to visitor sites inland.
Commenting further on the possibility of a visitor tax to Orkney, Heather Woodbridge said:
“Assuming it goes ahead, I understand there will be further opportunities for the Council and other stakeholders to engage with the Scottish Government on the finer details of the legislation before it is introduced.
“The upcoming local stakeholder engagement on feasibility of an overnight visitor levy for Orkney will also investigate stakeholder views on a cruise ship levy, which can feed into future Scottish Government consultations.”
The city of Edinburgh has introduced a tourist tax of 5% for 2026 onwards. Anyone who is staying in paid, overnight accommodation in Edinburgh will need to pay the levy. This includes tourists, people staying for work or visiting the city for other reasons. This includes UK and Scottish residents.
- a 5% payment on the cost of the paid, overnight accommodation. The levy will be charged before VAT and will not be charged on extras like parking, meals, drinks or transport.
- will only be charged on the first 5 nights’ stay.
- will be charged at the same rate every day of the year, indefinitely, for stays from 24 July 2026 onwards.
Fiona Grahame
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