Potential cruise ship levy (Scotland)

Overview

The Scottish Government is seeking views on giving local authorities in Scotland the power to introduce a cruise ship levy in all, or part, of their area if they choose to do so. We want to hear your views on the benefits and problems a cruise ship levy could bring, the potential impacts (both positive and negative), and practical questions about how any such levy could best work.  

Throughout this consultation we have used the term ‘cruise ship levy’ to refer to a potential financial levy to be applied in relation to cruise ships visiting ports where there is the opportunity for passengers to disembark. One of the consultation questions asks for views on what name should be used for such a levy.

Background

Analysis carried out by the Scottish Government has identified approximately 1,000 cruise visits to Scottish ports in 2024, with a combined passenger capacity of 1.2 million. 

The areas scheduled to welcome the most passengers were Invergordon, Orkney, Edinburgh, Lerwick, and Greenock, and the average ship in the five busiest ports carried over 1,000 passengers. The number of passengers who disembark from a ship will vary by ship and port, and will be influenced by multiple factors such as the attractions available on shore and even the weather that day.

Cruise passengers make up approximately 2% of the total number of overnight stays by visitors in Scotland. However, it is worth noting that in some parts of Scotland cruise passengers make up a much higher percentage of the number of visitors. For example, in 2018, 84% of overnight visitors in Orkney, and 79% of those in Shetland, were cruise ship passengers.

Roundtable events

Scottish Government, with input from industry bodies and COSLA, arranged four roundtable events on a potential cruise ship levy. The purpose of these events was to bring together representatives of cruise ship operators, ports, local authorities, tourism organisations, and other bodies, to explore the merits and issues around a potential cruise ship levy.

The discussions were wide ranging, but some common themes emerged at all the events. These included:

• the need to be clear on the purpose and rationale of any cruise ship levy;
• noting the potential deterrent effect a cruise ship levy could have on port calls by cruise ships;
• how any funding raised by a cruise ship levy should be used, and what restrictions (if any) should be placed on how a local authority could use such funds;
• noting the benefits and pressures that cruise ship passengers brought to the areas they visited.

At the roundtable events those in support of a cruise ship levy argued that such a levy would provide a means of raising revenue from the cruise ship industry, reflecting the impact that they believed it had on communities and local authority services. A view was also expressed that where a local authority had decided to introduce a visitor levy those using overnight accommodation would have to pay to stay in a local authority area, but without a cruise ship levy there would be no equivalent levy that could be used in relation to cruise ships. The Scottish Government is interested in the rationale that those who support a cruise ship levy put forward, and what the purpose and goals of any such levy would be.

Arguments that were made against a cruise ship levy at the roundtable events were that cruise ships and their passengers have, on balance, a positive economic impact on the areas they visit. Some attendees argued that passengers have very limited impact on local infrastructure as they do not use public services such as buses or health services, though other attendees took the view that passengers do bring pressure on local services. Attendees at the roundtable events also raised the potential deterrent effect of any cruise ship levy, and the reduction in the number of port calls that it could possibly lead to. The potential positive and negative economic and other impacts of any such levy, including any deterrent effect, are discussed later in this consultation paper.

Why your views matter

An opportunity to contribute your views on a potential cruise ship levy in Scotland.

The levy would apply in relation to cruise ships, or cruise ship passengers, using one or more ports in the relevant local authority’s area.

We would be grateful for your views on the potential impacts, both positive and negative, that the introduction of such a levy may have.