Highland Council backs Scottish government proposal to have option to create a cruise ship levy
The Highland Council has issued its support for a Scottish Government proposal to give local authorities the power to create a cruise ship levy in the area.
A meeting of the council’s economy and infrastructure committee heard that such a levy could provide additional funds to mitigate the impacts of cruise ships.
In 2023 passenger numbers to Highland ports reached almost 300,000 with 16 ports and harbours with cruise ship activities in the region.
These range in type, size and capacity from the Port of Cromarty Firth in Invergordon, which is a trust port and the busiest cruise ship port in Scotland, to Shieldaig, which is a rural municipal harbour accommodating only one or two small cruise ships each year.
Chairman of the economy and Infrastructure Committee, councillor Ken Gowans, said: “Highland Council supports the introduction of discretionary powers for local authorities to implement a cruise ship levy, recognising its potential to generate recurring revenue to mitigate tourism-related pressures and sustain local infrastructure.
“Such a levy would empower communities to reinvest in services and help develop the Highlands as a world-class, sustainable destination all at no cost to Highland Council taxpayers, something everyone across our communities will welcome.
“Should such powers be granted, the Council will then undertake further extensive analysis and engagement to inform future decision-making.”
The primary aim of a cruise ship levy is to ensure that local authorities experiencing pressures from the industry have additional funds to address infrastructure pressures and help contribute towards a thriving and sustainable tourism sector.
If implemented, such powers would be the first in the UK although cruise ship levies are already in place internationally, including Amsterdam, Barcelona, Dubrovnik and Venice.
Members agreed that any levy should be based on the number of passengers per ship, and cruise ship operators would be the most suitably placed to collect the levy from passengers for remitting to the local authority.
The committee said local authorities should decide the rate of any levy, with revenue raised retained and used strategically within that same area. This would enable funds to be dispersed where visitors visit within the implementing local authority area and improve the wider tourist experience.
The Highland Council has strongly encouraged the Scottish Government not to focus solely on islands and instead to introduce a point of entry levy for all of Scotland, enabling all Scottish local authorities to exercise their discretion to introduce a Point of Entry levy within their geographical boundaries.
In addition to responding to the Scottish ‘Government’s consultation, The Highland Council is preparing a proposition based on a means of having the ability to charge at points of entry into the Highlands, which will go some way to address the impacts of motorhomes and campervans.
The Scottish Government’s consultation closes on May 30.
However, The Port of Cromarty Firth (PoCF) has warned that the introduction of a Highland cruise levy could have a damaging impact on the regional economy, claiming it could potentially cost businesses millions of pounds.
Cruise passengers contributed an estimated £19 million in direct spend to the Highland economy last year.
Responding to the Scottish Government’s request for information on its cruise levy consultation, PoCF says the decision to tap into this key driver of economic growth, by imposing a projected minimum £5 levy on each cruise passenger coming ashore, is a “false economy”.
Figures compiled by the port show the amount of money raised for the local authority by introducing the additional local tax would have a net negative impact on the Highland economy.
According to the port’s analysis, this is because the amount of cash raised through the introduction of a cruise levy would be outweighed by a bigger drop in regional income as a result of a slump in ship and passenger numbers due to the new tax being applied.
Trudy Morris, chief executive of Caithness Chamber of Commerce added: “While there is clear merit in reinvesting such levies into communities and tourism infrastructure, additional cost burdens would most certainly deter cruise visits to smaller, less established ports like Scrabster.
“These proposals seriously risk undermining the years of dedicated work invested in growing Scrabster’s reputation and would place disproportionate strain on peripheral destinations and fragile regions, such as our own in the far north.
“Rather than introducing a cruise ship levy, the same goals could be achieved through collaborative visitor management approaches and targeted infrastructure funding in cruise destinations.”
