Cruise ship levy: consultation

3. A potential cruise ship levy power for local authorities

As discussed above during work to develop and consider a visitor levy on overnight accommodation calls were made for there to be put in place a similar levy that would apply to cruise ships and their passengers. Several parts of the world already have such levies, and some organisations believed that such a levy would also be appropriate in Scotland.

The Scottish Government has no plans to introduce a nationwide cruise ship levy. This consultation is about potentially giving local authorities the power to introduce a cruise ship levy in all or part(s) of their area, if they wished to do so. If such a power was given to local authorities there would be no requirement for them to introduce a cruise ship levy. It would be for each local authority to decide whether or not it wished to use the power.

At the roundtable events those in support of a cruise ship levy argued that such a levy would provide a means of raising revenue from the cruise ship industry, reflecting the impact that they believed it had on communities and local authority services. A view was also expressed that where a local authority had decided to introduce a visitor levy those using overnight accommodation would have to pay to stay in a local authority area, but without a cruise ship levy there would be no equivalent levy that could be used in relation to cruise ships. The Scottish Government is interested in the rationale that those who support a cruise ship levy put forward, and what the purpose and goals of any such levy would be.

Arguments that were made against a cruise ship levy at the roundtable events were that cruise ships and their passengers have, on balance, a positive economic impact on the areas they visit. Some attendees argued that passengers have very limited impact on local infrastructure as they do not use public services such as buses or health services, though other attendees took the view that passengers do bring pressure on local services. Attendees at the roundtable events also raised the potential deterrent effect of any cruise ship levy, and the reduction in the number of port calls that it could possibly lead to. The potential positive and negative economic and other impacts of any such levy, including any deterrent effect, are discussed later in this consultation paper.

The Scottish Government would welcome views on whether or not local authorities should be given the power to introduce a cruise ship levy in their areas. We are also interested in any alternatives there could be to such a levy, and how these could work in practice.

Question 1: Do you support giving local authorities the power to create a cruise ship levy in their area, if they wish to do so?

• Yes
• No
• Don’t know

Please provide the reasons for your answer.

As set out above those who support a cruise ship levy argue it would reflect the impact cruise ships and their passengers have on local communities and services, and would allow a local authority to apply a levy to cruise ship passengers in a way that similar to those using overnight accommodation.

Question 2: What alternatives (if any) do you think would achieve the same goals as a cruise ship levy? Please provide details of any alternative option(s).