Councillors to review report on introduction of tourist tax in Orkney

Orkney councillors are set to view a report which recommends investigations be undertaken to find out if introducing a “visitor levy” would be feasible.

The levy scheme would see visitors staying in the area overnight charged a fee by the council.

The proceeds would then be used to help fund services and projects in the areas these visitors most frequently use.

The aim would be to help the council cope with the high numbers of tourists the county attracts each year.

However, it wouldn’t extend to tourists on cruise liners or staying in motor homes.

The proposals aren’t unique to Orkney as councils across Scotland will be weighing up their options.

Councillors on Orkney Islands Council’s Policy and Resources committee will meet on Tuesday morning to discuss the report.

Recommendations from council officials say the council should consult with the public and stakeholders and carry out a cost-benefit analysis.

Council officers are looking into how the cost of these investigations could be shared with other, similar local authorities.

However, councillors are being asked to approve the council paying consultants up to £20,000 to carry out the investigations.

The findings would be presented to councillors at a seminar in March or April next year.

Another report would appear at a public council meeting next summer, in June at the latest.

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 estimation 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.

Notably, 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.

Following the meeting, the chair of Orkney Council’s Development and Infrastructure committee, Kristopher Leask 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 have to set out various aspects of it.

This includes when the scheme could come into force, what would be charged, the percentage rate, and the scheme’s objectives.