UKHospitality Scotland (UKHS) has expressed significant concerns over the Scottish Government’s proposal to empower local authorities to impose a levy on cruise ships and their passengers. The trade body cautions that such a move could have detrimental effects on Scotland’s tourism sector, particularly as businesses are already facing the impact of the new Visitor Levy legislation.
According to UKHS, cruise tourism accounted for just 0.5% of total tourism visits to Scotland last year, yet contributed approximately £130 million to local economies. The organisation says this highlights the cruise sector’s important role in supporting regional economic growth and sustaining hospitality and tourism businesses across the country.
Leon Thompson, Executive Director of UKHospitality Scotland, said, “The cruise industry is a major contributor to the Scottish economy and a key part of regional growth, supporting businesses across the country, as well as thousands of jobs. The majority of these jobs are in hospitality and tourism, in businesses that benefit from these visits.
“Many hospitality businesses have adapted their offer to tap into this lucrative market. For many, this is an essential part of revenue generation, extending the season and bringing visitors that would otherwise not have materialised. This all helps hospitality play its part in regenerating communities around our coast and on our islands.
“It is therefore essential that the Scottish Government consider what might be at stake if a levy, or series of local levies, were to be introduced. At a time of increased competition for cruise tourism, Scotland must not be priced out of the market and lose the clear advantage the country has, along with the economic growth and jobs it delivers.
“Applying a charge to visitors to islands needs careful consideration. It is already more expensive to visit our islands, so why seek to increase those costs and deprive island communities of economic opportunity?”
The proposed levy is intended to generate revenue to help manage tourism pressures and support local infrastructure. However, UKHS warns that introducing such a charge could lead cruise operators to drop Scottish ports from their itineraries, resulting in reduced visitor numbers and lost economic benefits.
The Port of Cromarty Firth, managed by the Cromarty Firth Port Authority (CFPA) and one of Scotland’s busiest cruise ship ports, welcomed almost 300,000 passengers in 2023. In its formal response to the consultation, CFPA echoed UKHS’s concerns, warning that the levy could negatively affect visitor numbers and economic impact. It suggested that a £5 per passenger charge could increase operating costs by 23%, potentially leading to a 10% drop in cruise calls.