Orkney councillors back plans for cruise ship tax which could bring in £1m

Orkney Islands Council has given its support to the idea of a locally-controlled cruise ship tax – estimating it could be worth over £1m per year.

The area’s councillors agreed a response to an upcoming Scottish Government consultation, saying granting local authorities powers to introduce a cruise ship levy would provide extra income for maintaining local services while also building relationships with cruise stakeholders.

A report put to councillors stated that if each of the 213,785 cruise visitors that visited Orkney last year was charged £5 via such a levy, it would have generated £1,068,925.

The report states that Orkney has seen a 237% increase since 2014.

Passengers from the ships account for almost half of all visitors to the county.

In its response to the Scottish Government, the council said that “in principle” it’s in favour of levy powers.

It also said this should be done “as soon as practicably possible.”

Such a levy would allow it to tackle the “growing challenges” presented by the cruise sector.

These pressures include the effect on infrastructure and the council’s ever-tightening budgets.

On the positive side, the council said a levy would allow visitors to contribute directly to places they visit and could enable other levies that aren’t “practicable in their own right.”

One possible downside would be an increase in costs to visitors.

Cruise companies could be limited or even deterred from visiting, the council response also states.

The consultation response was prepared by officers from the council’s sustainable tourism and marine services departments.

Councillors on the Policy and Resources Committee discussed the document this morning.

The response from councillors was that any levy should be as flexible as possible.

Councillor Leslie Manson said the cruise industry has a “marmite effect” on Orcadians.

He said: “Some folk hate it but many, many people like it.”

He said it was important that Orkney “optimise the autonomy” it has, concerning levy powers.

Councillor Rachael King added an amendment which said any cruise levy proposals shouldn’t get in the way of the council exploring further levies on motorhomes and day visitors.

In response to that, Christie Hartley, the council’s team manager for sustainable tourism said that part of the response states that “it will take the application of multiple levies in combination in order to make it financially viable” for the council to have those levies in the first place.

There was some concern and confusion about how levies, such as an overnight visitor levy, could affect Orcadians.

Councillor Steven Clackson sought some clarity, asking if the county’s internal ferries are going to be considered cruise liners.

He said: “A cruise line, when someone comes on holiday, that’s their accommodation; they’re moving and visiting different areas.

“A ferry is a transport link between two areas. It’s entirely different.

“Are ferries distinct from cruise liners? Is there going to be a levy every time you go across to Scrabster?”

The confusion seemed to arise from the differences between a visitor levy and a cruise levy, particularly points about overnight stays.

However, Mrs Hartley confirmed that ferries would not be considered cruise liners.

Levy would shouldn’t be charged for visiting each Orkney island, says council chief executive
The council’s chief executive, Oliver Reid, weighed in.

He said the council does not want to be in a situation “where every time a cruise passenger stepped into Orkney we had to re-charge them if it meant it discouraged smaller cruise operators visiting the outer isles.”

He said there wouldn’t be a levy which visitors pay upon visiting each Orkney island.

Mr Reid said the council would seek the flexibility of having a cruise ship levy where it would “charge once for a visit to Orkney, rather than being pushed into a situation where we have to charge every time a cruise ship hit port.”

“The visitor levy is entirely separate.”