Cruise ship levy Scotland: How much would the levy cost? Who would have to pay it?

A public consultation on the proposals has now opened and members of the public are being asked to have their say on whether such a tax should be introduced, and what it could look like.

If introduced, the tax would be the first cruise ship levy in the whole of the UK.

As of last year, councils now have the power to introduce a visitor levy, also known as a tourist tax, in their local area. Places like Edinburgh and Glasgow will soon introduce a 5 per cent rate on all overnight stays.

If passed, a cruise ship levy would operate in a similar way, giving councils the power to decide whether or not to introduce it. The Scotman takes a look at what this could mean for those visiting Scotland on a cruise ship.

How many cruise ships come to Scotland?

In 2024, around 1,000 cruise ships came to Scotland, bringing 1.2 million visitors. This is an increase of almost 400,000 a year compared with 2019.

In fact, the busiest day at a single port last year was in September, when 9,600 people arrived in Invergordon within 24 hours.

Where would a cruise ship levy apply?

If legislation on this is passed, it would be up to each local authority to decide whether or not to introduce the levy, similar to the tourist tax.

The busiest ports are Invergordon, Orkney, Edinburgh, Lerwick and Greenock, with the average ship to these five ports carrying more than 1,000 passengers.

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Cruise ships disproportionately affect the islands. Nationally, cruise ship passengers make up 2 per cent of overnight stays, but it can be as high as 84 per cent in Orkney and 79 per cent in Shetland.

It is also a seasonal industry, with 97 per cent of cruise ship tourists coming to Scotland between April and September.

Who would have to pay it?

Ministers suggest it should apply to those paying for a journey on a ship that lasts two or more nights, where passengers have the option to leave the ship and explore Scotland.

It would not apply to ferry services, or those visiting Scotland on a private boat or yacht.

Would anyone be exempt?

Again, no decisions have been made, but a consultation document from the Scottish Government suggests disabled passengers, paid carers, those under 18 and crew members could be exempt.

How much would the levy be?

If introduced, each local authority would be responsible for setting the rate. There is no suggestion from ministers at the moment on what that rate should be.

Councils could look to the tourist tax for inspiration here. Glasgow and Edinburgh are both introducing a rate of 5 per cent on all overnight stays, and other councils such as Aberdeen are considering introducing a higher rate of 7 per cent.

How the levy is calculated is also still up for discussion. It could be based on the gross tonnage of the vessel, the total passenger capacity of the vessel, the total number of passengers actually on board, or the total number of passengers who get off the vessel when it docks.

How would this money be collected?

It could be down to cruise ship operators, which would pay the local authorities at set intervals such as annually.

Another option is to have a body such as the port operator or a national body like Revenue Scotland collect the levy and submit it to the local authority.

What would the money be spent on?

In a similar way to the tourist tax, the money would be kept by the local authority to spend locally. There are suggestions the money could be spent on improvements to visitor and harbour services.

What have ministers been discussing so far?

Government ministers have actually been discussing the viability of a cruise ship levy ever since talks to introduce a tourist tax started.

However, the idea has not been developed until now as ministers chose to focus on the visitor levy instead.

The Government has been looking at how cruise ship levies work in other parts of Europe, such as Amsterdam, Barcelona, Dubrovnik and Venice.

Members of the public now have until the end of May to submit their views on the proposals to the Scottish Government.