Introducing a cruise ship tax risks operators choosing not to visit Dundee and Fife ports, it has been warned.
Local authority areas like Fife and Dundee councils — home to Dundee and Rosyth ports — could be given the power to introduce a tax on visiting cruise ships.
Cruise passenger numbers have surged in Scotland since the pandemic, with more 1.2 million visits made a year – an increase of almost 400,000 compared with 2019.
And the Port of Dundee is anticipating even more cruise visits in future, buoyed by the city’s growing popularity as a tourist destination.
But an increase in costs brought about by any local cruise ship tax might force companies to avoid docking, industry bosses said.
They point out the millions the cruise ship industry currently bring to local economies.
Cruise tax risk to Dundee and Rosyth ports
Capital Cruising are the cruise operators for Dundee, Rosyth, Leith and the Forth anchorages, and are part of the Forth Ports group.
Robert Mason, head of cruise for Capital Cruising, said there is a risk that with increased costs, cruise ship operators may choose to avoid Scotland in their future itinerary planning
“The Scottish cruise industry makes a significant contribution to the country’s economy and we welcome being part of the consultations taking place with Scottish Government to understand the details of the proposed cruise visitor levy.
“The industry currently supports the Scottish economy through existing ship and passenger taxes, port fees and mooring costs, plus VAT charges on goods and services.
“Cruise tourism also supports thousands of jobs across Scotland as well as bringing significant local economic benefits to the port of call.
“As a cruise business managing three ports and two anchorages in the east of Scotland, we are focussed on growing cruise tourism following the dramatic downturn during the pandemic and there is a risk that with increased costs, cruise ship operators may choose to avoid Scotland in their future itinerary planning.”
Cruise ship levy consultation
The Scottish Government is seeking views on the practicalities of a cruise ship tax and the potential market implications and effect on local economies and communities.
Finance Secretary Shona Robison said there were no plans to introduce a “nationwide levy”.
But the door was still open for councils to bring in their own.
She said: “The tourism sector is a crucially important part of the Scottish economy and cruise visits are increasing.
“The consultation will help to inform the government’s decision over whether or not to bring forward legislation.
“And it is really important we hear from a wide variety of voices on this matter.
“Last year, we held events to hear the views of the cruise ship industry, local government, and others.
“We want to continue the helpful dialogue which started at those events, and explore further what a cruise ship levy could mean in a Scottish context.”
Conversation