The Scottish Government has launched a consultation on giving local authorities the optional power to introduce a tax on cruise ships visiting their areas. The proposal comes as Scotland sees a significant increase in cruise tourism, with approximately 1,000 cruise ship visits to Scottish ports in 2024, bringing 1.2 million passengers – an increase of almost 400,000 compared to 2019.
The consultation, which opened on Thursday [February 27, 2025], seeks views on the practicalities of such a levy, as well as the potential market implications and effect on local economies and communities. The Scottish Government has ruled out any nationwide levy on cruise ships, instead proposing discretionary powers for individual councils.
Finance Secretary Shona Robison said: “The tourism sector is a crucially important part of the Scottish economy and cruise visits are increasing. The consultation will help to inform the Scottish Government’s decision over whether or not to bring forward legislation and it is really important that we hear from a wide variety of voices on this matter.”
She added: “Last year, we held events to hear the views of the cruise ship industry, local government, and others. We want to continue the helpful dialogue which started at those events, and explore further what a cruise ship levy could mean in a Scottish context.”
Some local authorities have already expressed support for the proposal. Earlier this month, Orkney Islands Council gave its backing in principle to the idea, after hearing that a £5 levy on passengers could raise £1 million a year.
Orkney Council Leader, Councillor Heather Woodbridge, said: “Orkney’s cruise offering is first class, and we recognise that as tourism continues to grow and public sector budgets are stretched, the proceeds of a cruise ship levy could allow local authorities to maintain essential services and infrastructure.”
“A cruise ship levy could support improved visitor management and development that harnesses the opportunities of cruise tourism to both enhance the visitor experience and improve the wellbeing of our island communities. We must also be clear that a cruise ship levy should not replace other existing funding streams.”
In Shetland, where Lerwick hosted more than 130 cruise vessel arrivals carrying over 130,000 passengers last year, the reaction has been more cautious. Shetland Islands Council leader Emma Macdonald acknowledged the economic benefits of cruise ships but noted there are “still many unanswered questions” about the proposed levy.
“We know that here in Shetland they [cruise ships] contribute significantly to our economy, and there are many businesses that wouldn’t survive the winter without the boost that cruise ship visitors bring,” Macdonald said.
Shetland MSP Beatrice Wishart added: “Shetland has embraced the cruise ship sector and the boost in trade to local businesses is welcome. It cannot be ignored though that there can be impacts from cruise ship tourism, on council services for example, and capturing additional revenue could help to balance the additional strain.”
The consultation follows the passage of the Visitor Levy (Scotland) Act last year, which allowed councils to charge a tax on certain overnight stays but did not cover cruise ships.
The areas that welcome the most cruise passengers are Invergordon, Orkney, Edinburgh, Lerwick, and Greenock, with the average ship in the five busiest ports carrying over 1,000 passengers.
Cruise passengers currently make up approximately 2% of the total number of overnight stays by visitors in Scotland, but in some areas like Orkney and Shetland, they represent a much higher percentage – 84% and 79% respectively in 2018.
The Scottish Government will use the consultation responses to decide whether to bring forward legislation on the matter.
