Scottish Ministers are considering a “cruise tax” as part of plans to raise more money from tourists.
The levy would apply when cruise ships are docked in Scottish ports, with the proceeds used to fund local services. Under the Government’s Local Visitor Levy Bill, councils would be given the power to slap a fee on overnight stays in hotels.
The surcharge is a common feature of the tourism industry in European cities. It can be revealed that council leaders, through umbrella group COSLA, agreed that a “cruise terminal daily tax” should be included.
This would mean holidaymakers docking at cruise hotspots such as Inverclyde, Leith, Rosyth, Orkney and Shetland paying any fee. A report for VisitScotland found over 800,000 cruise passengers visited the country in 2019.
It is estimated the industry supports more than 800 employees, generating an estimated £23m “gross value added” for the economy. The report claimed the industry helps extend the tourism season, with Scottish ports serving 27 cruise lines and 67 different vessels.
Barcelona is a model for how a cruise tax could operate, with visitors charged €3 for a stay of more than 12 hours.
A Scottish Government spokesperson said: “The Scottish Government will be introducing a Local Visitor Levy Bill to Parliament and if passed, it will give local authorities a discretionary power to apply a levy on overnight visitor stays in accommodation in their area. Additional funds raised will be for local authorities to use, helping to fund relevant local activities and services.
“COSLA has requested the consideration of a levy being placed on cruise ships as part of the Bill. The Scottish Government will consider that proposal as it continues to work in partnership with all stakeholders, including the tourism industry, councils and others, as the draft legislation is developed to create the levy.”
Marc Crothall, Chief Executive of the Scottish Tourism Alliance, said: “We have consistently stated that additional levies being imposed on visitors to Scotland is very unwelcome. Scotland needs to be seen as a globally attractive and competitive destination.
“A tourist tax will almost certainly impact negatively on businesses and destinations who must grow a future pipeline of demand in an increasingly competitive market-place. This is not a time to impose additional and harmful regulation on the sector.”
Tracy Black, CBI Scotland Director, said: “While firms recognise the need to raise additional revenue, a further ad-hoc tax on a sector vital to the Scottish economy would be a bitter blow for businesses still reeling from years of pandemic disrupted trading. It could also put at risk some of the huge economic benefits of tourism that are felt right across the country.
“Ultimately the best way to sustainably fund public services is to have a thriving business sector that delivers investment, growth and prosperity.”
Lib Dem local government spokesperson Peter Barrett said: “A small levy on visitors would go a long way towards repairing roads, providing infrastructure like bins and public toilets and ensuring that communities can benefit from the influx of visitors.
“If the Scottish Government really wanted to put more money into people’s pockets however, they could also cancel their swinging cuts to local government which force councils to raise council tax to plug the gaps or lead to yet more cuts to local services.”
Tory MSP Miles Briggs said: “It is astonishing that, as businesses and individuals grapple with a cost-of-living crisis, the only answer from some appears to be imposing more taxes.
“Not content with imposing a tourist tax in the first place, now council leaders want to damage the economy even further by proposing to bring in this extra levy.
“These plans are misguided at a time when businesses and our economy needs as much as much support as possible to cope with rising costs."
A COSLA spokesperson said: “COSLA is exploring, with Scottish Government, all options for local revenue raising. COSLA’s position is that Councils should be enabled to introduce revenue raising appropriate to local circumstance.”
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