Cruise ship levy could raise £1m a year in Orkney

A £5 levy on cruise ship passengers arriving in Orkney could raise more than £1m a year, councillors have been told.

The Scottish government is exploring giving local councils new powers to charge such a levy.

Orkney Islands Council has now given its backing in principle to the introduction of new discretionary powers for local authorities.

Councillors on the policy and resources committee were told this week it could raise the significant sum for infrastructure and services across the islands due to the tens of thousands of visitors by sea.

More than 210,000 cruise passengers visited Orkney last year.

Councillors were told any extra income from a levy could be used to help offset the pressure high-volume tourism places on infrastructure and the environment, particularly around historic sites.

They were also assured local ferry users would not be involved in any measures to tax ships.

Council leader Heather Woodbridge described Orkney's cruise offering as first class.

"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," she said.

"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."

Councillors approved Orkney's formal response to the Scottish government, endorsing future tax raising powers on cruise ships.