The tiny island in Scotland that could slap tourists with harsh 'Venice-style' tax

, just off the northeastern coast of Scotland, is considering implementing a similar to 's, where a point-of-entry levy would be introduced to better control the influx of tourists. With 450,000 visitors annually and a population of only 22,000, according to Orkney Islands Council, the rising number of visitors is putting pressure on the island's public services, facilities, natural and cultural heritage, and local communities. In September 2024, the Scottish government passed the Visitor Levy (Scotland) Act 2024, which grants local authorities the ability to introduce a tourism tax in the form of a visitor levy similar to the £4.20 tourist tax that Venice has now put in place.

The Council is assessing the feasibility of a scheme, which could involve a charge on overnight stays. There are now also ongoing consultations taking place about a potential levy on cruise ship passengers as an alternative.

Kirkwall, the capital of Orkney, often sees up to 6,200 cruise ship visitors in a single day, reported.

Following a consultation with local communities and industries, many reportedly agreed that a point-of-entry levy (applied to all visitors, not just those staying overnight) was preferred over an overnight accommodation tax.

In February, the Scottish Government initiated a public consultation to explore options for a Cruise Ship Levy that could be implemented by local authorities.

Previously, Oliver Reid, the chief executive of Orkney Islands Council, argued that a "day visitor levy" would be more flexible than a cruise ship tax to help fund the infrastructure needed to support the large number of visitors.

Businesses, residents, and other stakeholders can submit their responses to the consultation through the Scottish Government's Citizen Space platform and the consultation will close at the end of this month, on May 30.

Liam McArthur, the Liberal Democrat MSP for Orkney said after the General Questions that a point-of-entry visitor levy, applied to all tourists arriving by cruise ship, motorhome, or overnight accommodation, would be a fairer and more practical solution rather than an accommodation-based tax.

On May 8, he said: "When the Visitor Levy Act was undergoing scrutiny last year, I made the case strongly for cruise ship passengers and motorhomes to be included in its scope. Whilst my amendments were not successful, I was encouraged to see the government launch a consultation on a cruise ship levy earlier this year, which includes an option for local authorities to apply a point of entry levy.

"It is vital that any visitor levy must recognise and be tailored to the needs of our island communities. There remain significant concerns locally about the implications of an accommodation-based tax on overnight stays and the disproportionate impact this will have on small businesses and accommodation providers. Logistical difficulties also appear to have been underestimated.

"A point of entry levy, which would cover tourists visiting Orkney in cruise ships and motorhomes as well as staying in overnight accommodation would offer a fairer and more straightforward solution.

"I'd encourage any business owners involved in the tourism industry locally to make their views known through the Scottish Government consultation, which closes on the 30th May."