‘Tourist tax’ rejected by councillors after strong opposition

September 23, 2025 at 1:03 pm

Proposals to implement a levy, or tax, on visitors has been rejected after strong opposition from residents and businesses.

The introduction of an overnight visitor levy in Orkney will not go ahead at this time.

The decision, taken at today’s meeting of Orkney Islands Council’s policy and resources committee, follows extensive feasibility investigations, including stakeholder engagement with the local community, businesses and visitors.

Similar decisions have been made in recent weeks by Shetland Islands Council and the Comhairle nan Eilean Siar.

The Visitor Levy (Scotland) Act 2024 gives local authorities discretionary power to charge overnight visitors staying in specified types of accommodation.

However, the council’s commissioned study — conducted in partnership with Shetland Islands Council and Comhairle nan Eilean Siar — found strong opposition to the overnight levy model among local residents and businesses, significant logistical issues of applying the levy and limited economic benefit.

Stakeholders also raised concerns about fairness, particularly the exclusion of high-impact visitor segments such as cruise ship passengers, and the potential risks to Orkney’s tourism economy.

While there was broad support for a levy that funds infrastructure and environmental conservation, the preferred models were those targeting all visitors at entry points, such as a cruise ship levy or a point of entry levy — which is not included in the legislation at this point.