Could a point-of-entry levy benefit Shetland without putting tourists off?

A proposed ‘pay-on-entry’ levy for visitors to Shetland could raise money for tourism infrastructure, but concerns have been raised over its potential impact on the islands.

The Viking Jupiter is just one of 100 cruise ships that will dock at Lerwick this year.

The day-long stop gives passengers a chance to visit scenery and ancient sites and spend money in local businesses.

But in future they could be asked to dig deeper, with Shetland, Orkney and Comhairle nan Eilean Siar councils urging the Scottish government to legislate for a point-of-entry levy, that could be added to cruise, ferry and airline fares. Money raised would be used to support local infrastructure and tourism.

Councillors had decided against introducing the accommodation visitor levy in September 2025 after finding “the risks outweigh the benefits”, instead turning their attention to alternative options to raise money from visitors.

‘Levy could have a significant impact’

Cruise ships bring thousands of visitors to Shetland every year

Cruise ships can bring thousands of visitors at once, prompting debate over pressure on local services and whether those arriving should contribute towards their upkeep.

However, Lerwick Port Authority has warned a point-of-entry levy could discourage visitors and damage local businesses, seasonal employment and the wider economy.

“For the cruise sector future bookings remain strong, but growth is beginning to plateau,” a spokesperson said.

“Any potential reduction in cruise calls could have a significant impact and undermine years of relationship building with the sector to provide sustainable operations.”

But visitors STV News spoke to were largely supportive of paying a small charge.

US passengers make up the largest single group of cruise visitors to Shetland, accounting for approximately 40% of arrivals at Lerwick Port Authority.

‘It’s a small price to pay for the privilege’

A group of tourists from Colorado in the US said it wouldn’t deter them from coming to Shetland.

“When you’re on an island with a limited source of revenue, taxing tourists coming onto the land is a way to support the industry and livelihoods,” one visitor said. “That’s an easy price to pay.”

“I think it’s a privilege to be able to come to places far away and have the opportunity to explore and experience what people enjoy here,” another added. “For that privilege, it deserves support in ways we can provide it.”

Another commented: “It wouldn’t put us off coming if it was a couple of quid. Maybe if it was £50 or £100.”

Another couple suggested any levy be included in the initial cruise fare rather than paid separately.

“Just wrap it up and it would be easier,” one added.

Earlier this year, councillors in Edinburgh and Glasgow brought in a 5% charge on overnight stays in hotels, hostels, guest houses, B&Bs and self-catering accommodation.

Councillors backed the introduction of a 7% visitor levy for Aberdeen in August, with several other regions in Scotland to follow suit.

‘We had 1,000 through the door in one day’

Shetland shopkeeper Michelle says tourism is 'booming' on the island — Shetland shopkeeper Michelle says tourism is ‘booming’ on the island STV News

Michelle, who runs the independent Tourist Centre in Lerwick, said the tourism trade was “booming” on the island.

“I love walking up when there are cruise ships. The town is bustling with a nice atmosphere about it.

“One day with the Clipper, we had over 1,000 through the door. Though we have been extremely busy, even when there are no cruise ships.

“People want personal contact, to speak to somebody, to pick up a map and a paper.”

She believes a levy would benefit the local area.

“If everybody got charged up to £5, you’re going to pay it. You don’t come here to not spend money. Adding that little bit extra will be good for Shetland.”

‘A force for good’

Amanda Hawick, founder of the Shetland Tourism Association, said a levy could be a “force for good” if the money raised was reinvested in the isles.

“We used to get funding once upon a time, but with our councils now in an unsustainable position, it’s very important we develop sustainable tourism and we need that funding to help develop that.

“If it’s worked together, and if that money, the Government does implement that levy, that is ring-fenced to go back for infrastructural development and tourism on the islands.”

She said feedback from visitors had been positive.

“If the cruise levy comes in and it’s a couple of pounds, they’re more than happy to pay. I’ve been asking visitors coming into tourist offices, guests in the guest house, ‘Would you pay a visitor levy?’

“We’ve had really positive feedback. They’d be more than happy if it was going to facilitate things once they’re here.

“It’s really good we get that positivity from people coming here. They’re behind this levy.”

Tourists also suggested any levy be included in the initial cruise fare rather than paid separately. STV News

She says discussions with destinations along Nordic cruise routes had highlighted similar challenges.

“We’re all sort of dealing with the same issue at the moment with cruise ships,” she explained. “Some are overrun with cruise ships and they put measures in to protect residents first and the islands, but also benefit from the ships coming in.

“We see them in the shops and on the streets, taking tours around the islands, so we had to look at where else we can get that levy.”

A council spokesperson said: “Shetland Islands Council is currently exploring the economic benefits of the cruise sector in Shetland. We would need to carefully consider the potential impacts on the industry, as well as any benefits, before taking a position on whether to introduce a cruise ship levy should those powers become available.”

A Scottish Government spokesperson said: “Should future legislation be passed to introduce a Cruise Ship Levy, Ministers envision that any decision on whether to introduce a levy would be a matter for the relevant local authority.

“The Scottish Government consulted on this issue in 2025. Ministers are considering next steps, informed by consultation findings and wider priorities.”