Orkney Council Rejects Overnight Visitor Levy But Explores Alternative Tourism Taxes To Support Infrastructure In Scotland

Published on September 23, 2025

Despite nan imaginable gross this measurement could generate, nan Orkney Islands Council precocious decided against enacting an overnight visitant levy. This is portion of a larger shape successful Scotland, wherever a number of section governments are struggling to onslaught a equilibrium betwixt nan demands of locals, businesses, and nan influx of tourists. Residents and business owners powerfully opposed nan levy, moreover though it could person raised much-needed money for section infrastructure. In nan end, nan assembly decided to cull nan levy but near unfastened nan anticipation of looking into different backing options, specified arsenic charging a point-of-entry interest to each visitors, including those arriving by cruise ship.

Background: The Visitor Levy (Scotland) Act 2024

The preamble of nan Visitor Levy (Scotland) Act 2024 allowed section authorities crossed Scotland to see imposing a complaint connected overnight stays successful various types of accommodation, including hotels, guesthouses, furniture and breakfasts (B&Bs), and self-catering facilities. This complaint is aimed astatine generating further gross that would support nan infrastructure utilized by tourists, specified arsenic transportation, nationalist services, and discarded management. The thought down nan levy is to guarantee that visitors, who lend to nan deterioration and tear of section resources, thief money their upkeep.

Local authorities tin group nan complaint of nan levy, pinch nan Scottish Government indicating that nan complaint could beryllium arsenic precocious arsenic 5%. This elasticity successful complaint provides councils pinch nan powerfulness to tailor nan levy to their circumstantial needs. However, while nan measure was intended to create a much sustainable exemplary for tourism, it has raised concerns among section businesses and residents, peculiarly successful smaller, agrarian communities for illustration Orkney.

The Decision successful Orkney

Orkney’s determination to cull nan overnight levy was based connected a assortment of factors, each of which were cautiously considered during consultations pinch nan section community, businesses, and tourists. The astir important interest raised during nan consultations was nan wide guidance from islanders. Many section residents and businesses felt that specified a complaint would spot undue financial unit connected some visitors and those operating successful nan tourism sector. For Orkney, wherever tourism plays a captious domiciled successful nan section economy, this interest was not taken lightly.

Consultants had estimated that a 5% levy connected overnight stays could dress up to £3.8 cardinal complete a decade, which could person been reinvested into nan section infrastructure to amended services utilized by tourists. However, nan investigation besides recovered that galore section businesses, peculiarly those successful nan tourism and hospitality industries, expressed concerns astir nan imaginable administrative load of implementing specified a levy. This includes further paperwork, monitoring, and postulation of fees, each of which could divert resources from nan halfway business operations of tourism operators. Many besides warned that nan levy could raise nan costs of staying successful Orkney, perchance making it a little charismatic destination for tourists.

Councillors agreed that nan costs of implementing specified a levy, coupled pinch nan beardown guidance from section stakeholders, made it untenable. They besides considered nan imaginable antagonistic impacts connected Orkney’s competitiveness arsenic a tourism destination. Orkney, known for its stunning landscapes and rich | taste heritage, competes pinch different celebrated Scottish destinations specified arsenic nan Highlands, Edinburgh, and Glasgow. The preamble of a caller complaint could make nan islands little appealing, peculiarly to budget-conscious travelers.

The Alternative: Point-of-Entry Fee

While nan assembly decided against an overnight levy, it did not wholly norm retired nan thought of implementing an replacement tourism tax. One connection that gained traction was nan thought of a point-of-entry fee. This interest would use to each visitors arriving connected nan island, sloppy of whether they stayed overnight aliases conscionable passed through. Cruise vessel passengers, a important portion of Orkney’s visitant economy, could besides beryllium taxable to this levy, which would thief offset nan effect of tourism connected section infrastructure.

A point-of-entry interest would beryllium simpler to instrumentality than an overnight levy, arsenic it would only require monitoring nan presence points, specified arsenic ports and airports. This strategy could perchance debar nan complexities of search overnight stays successful various types of accommodation, which was a interest raised by section businesses. Additionally, it would administer nan financial work for tourism much equitably, ensuring that each visitors lend to nan upkeep of section services, sloppy of really agelong they stay.

Broader Implications for Scottish Tourism

Orkney’s determination fits into a broader inclination successful Scotland, wherever respective section authorities are weighing nan pros and cons of introducing tourism taxes. Similar debates person unfolded successful different parts of Scotland, including Shetland, nan Western Isles, and nan cities of Edinburgh, Glasgow, and Aberdeen. Each region has its ain group of challenges and opportunities, pinch immoderate choosing to instrumentality aliases research visitant levies, while others opt to activity replacement methods of funding.

In Edinburgh, for example, nan metropolis assembly has already approved a 5% levy connected overnight stays successful a bid to raise costs for metropolis services. Similarly, successful Aberdeen, councillors person backed a 7% visitant levy, which is expected to make important income for section infrastructure projects. These cities, pinch their larger populations and precocious volumes of tourists, look different pressures compared to smaller islands for illustration Orkney, wherever nan tourism manufacture is captious but much susceptible to changes successful pricing.

The statement complete tourism taxes successful Scotland is expected to proceed arsenic nan economical effect of tourism becomes progressively important for galore communities. While nan preamble of specified taxes could thief money captious infrastructure improvements, it besides carries nan consequence of alienating visitors and negatively affecting nan very businesses that dangle connected them.

The Future of Orkney’s Tourism Economy

The assembly is still dedicated to figuring retired really to support nan islands’ tourism manufacture viable arsenic Orkney develops. Discussions pinch section stakeholders will astir apt continue, and replacement gross models for illustration nan point-of-entry interest will astir apt beryllium investigated further. It is evident that nan nonsubjective is to support nan infrastructure needed to support visitors for galore years to come, not to discourage them.

It will beryllium difficult for Orkney to onslaught a equilibrium betwixt nan demands of visitors and nan worries of locals and businesses arsenic tourism is predicted to support increasing. The council’s receptivity to different taxation arrangements demonstrates a desire to travel up pinch imaginative answers to these difficult problems. To support Orkney’s entreaty arsenic a recreation destination and protect nan use of its section communities, immoderate early tourism taxation must beryllium equitable, straightforward, and efficient.

[Image Source: Visit Scotland Official Website]