Home Cruise Proposed Cruise Visitor Tax Meets Opposition on Scenic Islands

Proposed Cruise Visitor Tax Meets Opposition on Scenic Islands

Proposed Cruise Visitor Tax Meets Opposition on Scenic Islands


The picturesque Shetland islands in Scotland, identified for his or her scenic magnificence, enjoyable environment, and abundance of wildlife, are at the moment on the heart of a debate relating to the imposition of a customer tax on vacationers, together with these arriving on cruise ships. 

In its present type, the brand new invoice would impose a tax on guests arriving and staying within the Shetland Islands, but exempting these friends arriving by cruise ships.

One political celebration has now argued to incorporate cruise ship guests, which has led to opposition by native stakeholders, a lot of whom rely closely on income generated by cruise ships visiting the area.

Shetland Islands Look At Taxing Cruise Ship Guests

The Shetland Islands, an island group situated between Scotland and Norway, and the northernmost a part of the UK, is among the hottest wildlife locations in Europe. Identified for an abundance of birdlife, seals, passing whales, and different animals, the island group has change into an vital cruise vacation spot within the final couple of years. 

Whereas many acknowledge that cruise ships have a big function to play within the native financial system, those self same ships even have a privileged place at this second. Guests to the Shetland Island may quickly be charged a customer tax, a invoice that’s being thought-about by parliament. Nonetheless, the identical legislation doesn’t embrace cruise ship guests. 

One political celebration, The Scottish Liberal Democrats, led by MSP Beatrice Wishart, has voiced its opposition to excluding cruise ships from the brand new invoice. 

“Cruise ships are a big and welcome a part of Shetland’s tourism sector however with the loophole that will imply cruise ship guests wouldn’t be liable to pay this levy is unfair and that provision must be addressed within the invoice,” Beatrice Wishart mentioned to Shetland News.

Holland America Ship Lerwick, Shetland Islands
Holland America Ship Lerwick, Shetland Islands (Photograph Credit score: Darryl Brooks)

The Liberal Democrats really feel that exempting cruise ship passengers from paying to go to the Shetland Islands above what they pay in port charges and cruise fares is justified. The impression that cruise ships have on native providers, infrastructure, and the setting, is critical.

Wishart: “In some locations, the quantity of cruise ship guests can have a bigger impression on native providers than guests staying in motels or self-catering or B&Bs. Underneath present proposals, solely these staying in a single day in bricks and mortar would pay the levy.”

The customer levy isn’t the one tax that cruise ships crusing to the Shetland Islands would want to pay. There are plans for emission taxes to be levied across Scotland for visiting cruise ships, and people crusing to the Shetland Islands already pay £4.56 to the native port authority. Combining these three makes visiting Scottish ports much less enticing for cruise ships. 

Opposition from the Port Authority

Visiting cruise ships and expedition ships play a big function within the native tourism trade, producing funds not only for native companies, but additionally for wildlife conservation. That is very true at Honest Isle, a preferred space for visiting expedition cruise ships that come right here for the huge abundance of birdlife. 

The Lerwick Port Authority has raised considerations in regards to the proposed tax’s impression on Shetland’s attractiveness as a cruise vacation spot. Port Authority Chief Government Calum Grains identified the already important contributions of the cruise sector to the native financial system, together with job creation and customer spending.

Cruise Ship in Lerwick, Shetland Islands
Cruise Ship in Lerwick, Shetland Islands (Photograph Credit score: Yuriy Chertok)

“The unknowns surrounding the introduction of any new taxation, both via the Customer Levy or the proposed new Cruise Tax from the Scottish Inexperienced Occasion to deal with emissions is regarding and unsettling for the trade,” Grains mentioned.

Additionally Learn: Another Cruise Destination to Limit Cruise Ship Arrivals

“We’re following the discussions intently as any new tax may have important impacts on the competitiveness of Shetland as a vacation spot and the way Scotland is perceived extra broadly throughout the cruise trade.”

The cruise sector’s financial contributions are simple. Lerwick Harbour’s newest site visitors figures present a 37% improve in cruise ship calls in 2023, and a 46% rise in total passenger numbers, consistent with other ports across the UK.

In 2023, Lerwick Harbour, the primary arrival level for cruise ships, welcomed 123,902 cruise passengers, greater than double the earlier 12 months’s determine of 58,450. Simply in passenger port charges, this generated greater than half one million kilos.

Regardless of the continued debate, Lerwick Port Authority stays optimistic in regards to the future, with 156 cruise ships booked for the summer season of 2024, the port is taking a look at a 17% improve from the earlier 12 months. Whether or not these numbers will preserve growing with further taxes for cruise passengers stays to be seen. 

Cruise Ships in the Shetland Islands



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