By theorkneynews

Copyright theorkneynews

There will be no additional charges for visitors staying overnight in Orkney, councillors have decided.

The additional revenue raising powers granted by the Scottish Parliament would have imposed a small charge on visitors who stay in accommodation overnight in the islands. The money generated would have been used to provide better facilities for visitors and locals alike.

For instance, if the council decided to install public toilets near The Ring of Brodgar, that so many visitors, and islanders have been asking for.

Or it might have been used to make sure that our public bus service could cope during very busy cruise liner days.

Or even to help with the upkeep of some of our wonderful sites that we all love to visit, including camp sites and bothies.

Scotland’s other two island authorities have made the same decision. Local Authorities across Scotland have the increased powers to raise taxes through a visitor levy, and some are doing so.

Aberdeen City Council approved a 7% visitor levy which will be used, ” to generate revenue for enhancing leisure and business tourism in the city. Investing in improving the visitor experience will support economic growth.”

Edinburgh City Council and Highland Council have both agreed on a 5% visitor levy.

The rejection by OIC to use the increased revenue raising powers of the visitor levy has been welcomed by Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers. She said:

“The ASSC welcomes the pragmatic and evidence-based decision by Orkney Islands Council to reject the introduction of a tourist tax. With strong opposition from local businesses and communities, this decision reflects a clear understanding of the critical role that tourism plays in supporting the islands’ economy.

“Indeed, independent research has recently shown that the self-catering sector alone contributes £21m annually to Orkney, supporting 717 local jobs. We urge other councils to follow Orkney’s example and pause any consideration of a tourist tax, at least until they know what alternative charging arrangements they could introduce, and work in partnership with the tourism sector to fully assess the wider economic impacts.”

Click on this link for the OIC report, Item 10 Orkney Visitor Levy.

An alternative being suggested is a point of entry tax. This would be payable as visitors come in to Orkney, perhaps when booking a ticket – by air and ferry. That legislation would require to be passed by the Scottish Parliament so that will take time before that could happen.

Alternative levy models – particularly a cruise ship levy and a point of entry levy – are strongly supported. Both are considered more practical to implement than the overnight visitor levy and offer clearer mechanisms for exempting residents. The point of entry levy is widely regarded as the fairest approach as it applies to a broader range of visitors, including high-impact segments such as cruise passengers. By charging all visitors at entry, it offers the greatest revenue potential while minimising administrative complexity and cost. However, the viability of these alternatives depends on whether the Scottish Government progresses enabling legislation and on the design of that legislation. Orkney Visitor Levy Report

Commenting on the decision Leader of Orkney Islands Heather Woodbridge said:

“As a Council we are committed to sustainable tourism and to advocate for fair, practical solutions that meet the needs of an islands’ community. This means supporting local infrastructure and environmental goals in ways that protect Orkney’s communities and preserve its appeal as a destination.

“Today’s excellent report from officers laid out in detail the full implications of introducing an overnight visitor levy at this time, allowing elected members to make their decision from an informed and data driven position. Key to that was the significant engagement from our community and industry on these important issues – and I thank those who took the time to give their views during the consultation process.

“Ultimately, that report found that there were significant issues with the introduction of an overnight visitor levy in Orkney and Councillors unanimously agreed not to progress it any further at this time. We will continue to engage with the Scottish Government to explore other options including a point of entry type solution.”

The decision to not implement the levy follows on from councillors deciding not to have limited pedestrianisation of Kirkwall’s main retail thoroughfare, Albert Street.

Fiona Grahame