Could a Visitor Levy (aka a Tourist Tax) bring in much needed extra income to the local council or will it deter people from choosing Orkney as their holiday destination?
The Visitor Levy is an extra power local authorities in Scotland can use to tax visitors who stay overnight. The Scottish Parliament passed the Visitor Levy Bill last year and it became an Act on 5 July 2024.
Any monies raise from taxing tourists has to be spent on local visitor facilities and services.
How Can You Have Your Say?
Orkney Islands Council is holding a series a public events hosted by consultants Urban Foresight. To take part in these you have to book.
Online event: Tuesday 25 March from 6.30pm-8.30pm – to book your place click on this link https://tinyurl.com/3c5u2z42.
In-person event: Wednesday 26 March at the Pickaquoy Centre, from 6.30pm-8.30pm. Advance booking is required click on this link https://tinyurl.com/3nmsdacn.
Tickets for the in-person session have been capped at venue capacity so booking is essential. The in-person and online public engagement sessions will cover the same topics, you are encouraged to choose one event to attend to allow maximum participation.
Online Survey: You can also complete an online survey by Friday 11 April 2025. If a paper copy of the survey is required to enable a response, contact the Council on 01856 873535. Click on this link for the online survey.
Leader of Orkney Islands Council, Councillor Heather Woodbridge said:
“A visitor levy could provide the means of increasing the value of tourism for the benefit of all, enabling a more sustainable approach to tourism in Orkney.
“I would encourage individuals and tourism-related businesses and organisations to take part in these public engagement sessions – these important conversations will give the Council a better understanding of the benefits and challenges that such a scheme may bring.”
For more levy information head over to the Council’s Visitor Levy webpage.
Visitor Levy on Cruise Ships
A consultation is open for those who wish to share their views about a Visitor Levy on Cruise Ships:
Cruise ships are not covered by the current legislation for a tourist tax. This consultation is being run by The Scottish Government and closes on 30 May 2025. Click on this link for the Cruise Ship Levy Consultation.
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 onthe first 5 nights’ stay.
- will be charged at the same rate every day of the year, indefinitely, for stays from 24 July 2026 onwards.
Many countries have either introduced a tourist tax or are considering doing so.
A reader of The Orkney News has sent us this information about the tax being levied on tourists who stay overnight in some of Switzerland’s top destinations:
Which destinations are imposing tourist taxes in 2025?
- In 2024, the UK imposed a new system called Electronic Travel Authorisation (ETA), whereby visitors from the US, Europe, Australia and Canada will be required to apply for permission and pay to enter the country. From April 2025, eligible Europeans will need an ETA to travel to the UK, too
- In 2025, the EU will begin implementing a new tourist visa, whereby non-EU citizens travelling from outside the Schengen zone will need to fill out a €7 application to enter the country
- In Thailand, a travel tax has been proposed for mid-2025. If approved, the fee will be around £6.87 for those arriving by plane.
This website also lists all the countries that impose a tourist tax or similar: Condé Nast Traveller
Which destinations imposed tourist taxes in 2024?
- In Italy, Venice is charging day tourists a fee as of spring 2024. Day-trippers are required to pay a fee of €5 a day, while the rate for overnight visitors ranges between €1 and €5 per night
- The Indonesian government announced a tourist tax on travellers visiting Bali from 14 February 2024 of roughly £7.35
- As of 1 October 2024, New Zealand’s tourist tax triples – tourists entering the country must pay a fee of NZ$100, up from NZ$35
The possible Visitor Levy being charged in Orkney would not apply to:
- motorhomes unless they stay in registered camping sites or caravan parks.
- cruise ships (see consultation above)
- for people in receipt of disability benefits from the UK or Scottish Governments
The Visitor Levy (Scotland) Act also included:
- a power for Scottish Ministers to cap the number of nights to which a visitor levy would apply, after consultation with councils, tourism businesses and tourism organisations and after Parliamentary approval
- a requirement for any council setting up a visitor levy scheme to establish a visitor levy forum which will discuss and advise the council on matters related to a levy in its area
- a requirement for the Scottish Government to review the Visitor Levy Bill no later than three years after the date of the first scheme coming into effect
Fiona Grahame
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