Potential cruise ship levy (Scotland) - Page 1 of 5 - Scottish Government consultations

Questions

The Scottish Government has no plans to introduce a nationwide cruise ship levy. This consultation is about potentially giving local authorities the power to introduce a cruise ship levy in all or part(s) of their area, if they wished to do so. If such a power was given to local authorities there would be no requirement for them to introduce a cruise ship levy. It would be for each local authority to decide whether or not it wished to use the power.

The intention behind any cruise ship levy would be to have the levy apply to those ships that are carrying paying passengers, on a journey involving two or more nights on the ship, and which give the passengers the option to disembark from the vessel onto the Scottish mainland or a Scottish island. It is not intended that a cruise ship levy would apply to ferry services in Scotland, or to those visiting Scottish waters in private boats or yachts and which are not carrying paying passengers.

1. Do you support giving local authorities the power to create a cruise ship levy in their area, if they wish to do so?

Yes No Don't Know

Please provide the reasons for your answer.

There is a limit of 3000 characters

2. What alternatives (if any) do you think would achieve the same goals as a cruise ship levy?

Please provide the reasons for your answer(s).

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3. What should the primary basis of a cruise ship levy charge be, if introduced in Scotland?

Tonnage of a ship Tonnage of a ship

One approach to a cruise ship levy would be to use the gross tonnage (GT) of the vessel as the basis for calculating a levy. All vessels that operate in UK waters must declare their gross tonnage. Ships over 24 metres in length are issued with international tonnage certificates by a certifying authority, and all ships operating in UK waters are required to hold an international tonnage certificate (Merchant Shipping (Tonnage) Regulations 1997; United Nations, 1969).

The levy could be based on a cost per GT, could be a flat fee that applied to all cruise ships, or could be a varying levy based on bands linked to the gross tonnage of a ship. In this approach the event that triggered the levy would be the ship mooring at the relevant port (one at which a local authority had decided to apply a cruise ship levy), and with the option for passengers to disembark from the ship. Such an approach would have the advantage of being clear, and potentially reflect the size of a cruise ship, and therefore the number of passengers it would be likely to disembark.

Passenger capacity of a ship Passenger capacity of a ship

Another possible approach to a cruise ship levy would be to use a ship’s total passenger capacity as the basis for calculating a levy. In this approach the levy could be set at a figure per passenger (in terms of capacity), or could be set in broad capacity bands. This approach would need to require cruise ship operators to declare the passenger capacity of the relevant ship. It is also worth noting that the passenger capacity of a ship can change over time, as space on board on a vessel can be reconfigured.

In this approach the event that triggered the levy would be the ship mooring at the port at which a local authority has decided to apply a cruise ship levy, and with the option for passengers to disembark from the ship.

Available evidence from international examples suggests that this is the most common approach, used in locations including Dubrovnik. However, there is significant variation in how fees are applied. For example, in Dubrovnik, a lump sum fee is applied based on the passenger capacity within set ranges (e.g. a ship with a capacity between 1001-2000 passengers would be charged a lump sum fee of approximately 2700 euro) (Republic of Croatia: Ministry of Tourism and Sport, 2019).

Number of passengers on board a ship Number of passengers on board a ship

Another approach to a cruise ship levy would be to base it on the total number of passengers on board a vessel when it moors at a port. This is an approach taken in a number of parts of the world, such as Amsterdam where cruise ships must register with the Passenger Terminal Authority and provide a manifest of passengers. This manifest has to distinguish between those who are continuing with the cruise from Amsterdam, known as transit passengers, and those starting or completing their cruise in the city, known as turnaround passengers. The cruise ship tax is then calculated based on the total number of transit passengers.

Advantages of this approach are that passengers would not need to be counted as they disembarked, reducing the potential administrative burden, and the level of cruise ship levy to be paid could be calculated as soon as a ship moored in a port. A levy could potentially be based on a per passenger basis, or in bands depending on the number of passengers.

Number of passengers to disembark from a ship Number of passengers to disembark from a ship

A fourth possible approach to a cruise ship levy would be to use the number of passengers disembarking from a ship as the basis for calculating a levy. This would have the advantage of aligning the level of cruise ship levy paid with the number of passengers physically being in the area. Disadvantages of this approach would be that the level of cruise ship levy to be paid could not be calculated in advance, and it would be likely that passengers would need to be counted on and off the ship, with any exemptions (see below) applied. A range of approaches could be taken to who would pay or collect the levy in this scenario. It could be that the cruise ship operator counted the number of passengers to leave the ship (or use tendering boats), and then paid the appropriate level of cruise ship levy; alternatively the local authority, port operator, or another body could count the number of passengers and then bill the cruise ship operator.

In this approach the event that triggered the levy would be:

passengers setting foot on land in the area where a cruise ship levy applied, whether that be from leaving a cruise ship via a gangway; or
where a cruise ship is at anchor off the coast, stepping off a boat tendering passengers to and from a cruise ship.

This approach is similar to that adopted in Venice, where a “Day Visit” fee is applied to all tourists visiting the city centre who are not booked into accommodation in the city. (The “Day Visit” fee is not technically a cruise ship levy as it is applied not only to those visitors arriving by cruise ship, but also those who arrive by car, train, or other means of transport.) In this case, cruise ship passengers wishing to visit the city are required to either pay the fee individually online in advance or remit the fee via their carrier, whether that be a cruise line or other means of transport.

Tonnage of a ship Passenger capacity of a ship Number of passengers on board a ship Number of passengers to disembark from a ship Other (please specify) Don’t know

Please provide the reasons for your answer.

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4. In addition to the main basis of the charge, should any cruise ship levy also take into account the environmental impact of a cruise ship?

Yes No Don't Know

5. Who should collect any cruise ship levy?

Cruise ship operator Port operator Local authority Other (please specify) Don’t know

Please provide the reasons for your answer.

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6. What enforcement powers should a local authority, or other relevant body, have to ensure compliance (and prevent avoidance and evasion) by those required to pay a cruise ship levy?

Please select all of the powers you think the body should have.

Power to request, and obtain or inspect, the information necessary to assess the cruise ship levy liability of a body Power to apply a penalty (e.g. a fine) if a cruise ship levy is not paid when it is required to be Power to apply a penalty (e.g. a fine) if a body provides inaccurate information in relation to a cruise ship levy, or destroys requested information

7. Do you think the rate of any cruise ship levy should be set at a national level or should it be for a local authority to decide?

Set at the national level Decided by local authorities Don’t know

Please provide the reasons for your answer.

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8. If the rate of any cruise ship levy were to be set by individual local authorities, should an upper limit be set at a national level?

Yes No Don’t know

9. Which (if any) of the following proposed actions do you believe local authorities should be required to undertake before being able to introduce a cruise ship levy?

10. How should revenue raised by a cruise ship levy be used?

Revenue raised by a cruise ship levy should be required to be spent on facilities and services used by cruise ship passengers and/or the cruise ship industry A local authority should be able to use revenue raised by a cruise ship levy in any way it wishes Don’t know

Please provide the reasons for your answer.

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11. Should any of the following groups be granted exemptions from payment of a cruise ship levy?

12. If national exemptions are introduced, do you think local authorities should be able to create additional exemptions at a local level?

Yes No Don't Know

13. Should there be an implementation period for any cruise ship levy?

This would be a required period to run from the time a local authority formally decides to introduce a cruise ship levy to when it came into force.

Yes No Don't Know

14. If there should be an implementation period how long should it be?

Less than 6 months 6 months 12 months One complete financial year 18 months More than 18 months

15. What, if any, transition arrangements should apply when a cruise ship port call is arranged before a local authority chooses to impose a cruise ship levy, but the port call takes place after the levy has been put in place?

a cruise ship levy should be paid in this situation a cruise ship levy should not be paid in this situation

16. What impact do you think a cruise ship levy would have on the following?

This helps with developing a robust Business and Regulatory Impact Assessment (BRIA) which considers as wide a range of impacts as possible. If there are any other groups that would be impacted by a cruise ship levy please also list them below, together with the extent to which you believe they would be impacted.

Please provide the reasons for your answer(s)

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17. Would the name ‘cruise ship levy’ be appropriate for a potential levy as explored in this consultation paper?

Yes No Don't Know

If you believe another name would be more appropriate please suggest it below.

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18 . Do you believe local authorities with islands should be given the power to create a broader ‘point of entry’ levy for one or more islands in their area, if they wish to do so?

Yes No Don’t Know

Please provide the reasons for your answer.

There is a limit of 3000 characters

19. If there any other points you would like to make in relation to a potential cruise ship levy that you have not been able to make elsewhere in this consultation, please add them below.

Are there any other points you would like to make?

There is a limit of 6000 characters