Visitors to Orkney could face a fee to stay on the island, it has emerged.
But cruise ship visitors and motorhome owners wouldn’t have to pay the so-called “tourist tax”.
The levy scheme would see visitors staying in the county overnight charged a fee by the council.
The proceeds would then be used to help fund services and projects in tourist hot spots.
The aim would be to help the council cope with the high numbers of tourists the county attracts each year.
Orkney tourist tax: What happens next?
These proposals aren’t unique to Orkney – councils across Scotland are weighing up their options.
But Orkney is making their own first move with a report which recommends at least finding out if the scheme is feasible.
Councillors will meet next week to discuss the report.
It recommends consulting with locals and carrying out a cost and benefit analysis. That should give an idea of whether it’s worth it.
Councillors are being asked to approve paying consultants up to £20,000 to carry out the investigations.
The findings would be presented to councillors at a seminar in the spring.
Another report would appear at a public council meeting next summer, in June at the latest.
The earliest Orkney would launch the scheme would be the summer of 2027.
What is the tourist tax?
Pressures caused by high numbers of visitors led to councils in Scotland calling for powers to implement a levy or tourist tax.
The Visitor Levy (Scotland) Act 2024 was designed to do just that – introducing new discretionary power to local authorities.
The legislation says the money from a levy or tax would be used to develop, support or sustain the facilities and services most used by visitors.
At this point, there’s no useful estimate of how much the levy would be or how much it could raise.
Such a levy only applies to overnight stays in certain kinds of accommodation, including bed and breakfasts, caravan parks, camping sites, hotels, hostels, and others.
However, it wouldn’t include cruise ships or motorhomes.
Why can’t it start sooner?
The earliest such a levy could come into force would be 2026.
However, if the scheme were to be progressed in Orkney it would be “unlikely to commence before summer 2027”, officials say.
But, the council report does state that “the Scottish Government has organised a series of roundtable events to discuss a potential cruise ship levy for local government in Scotland.”
The first of these was held in Orkney earlier this month, on September 5.
Three more are due to be held – in Edinburgh, Inverness, and Greenock.
Would a tourist tax be good for Orkney?
Kristopher Leask is the chair of Orkney council’s Development and Infrastructure committee.
He said a visitor levy could be “transformational” for the county, in terms of generating benefits for both the local communities and visitors alike.
Assuming the council moves ahead with the levy, it would be able to decide the details of the scheme.
This includes important aspects like how much to charge and when the scheme will actually launch.
Conversation