Orkney decides against ‘tourist tax’ on overnight stays

Councillors in Orkney have decided against introducing an overnight visitor levy for the islands, but have not ruled out backing another form of a “tourist tax”.

Scottish local authorities have the power to add an extra charge on overnight accommodation to help raise money for infrastructure used by visitors.

Consultants estimated a 5% levy would generate £3.8m over 10 years for Orkney, but they warned there was “widespread” opposition to the charge among islanders.

Councillors agreed not to pursue an overnight levy, but they were open to the idea of a point-of-entry fee, which could include cruise ship arrivals, in the future.

Shetland and also the Western Isles have already decided against pushing ahead with a levy on overnight accommodation.

A feasibility study by consultants suggested businesses in Orkney were concerned about an “increased administrative burden” and additional costs.

There were also concerns that it would make Orkney less able to compete for visitors.

Councillor Leslie Manson said: “There’s no question that the additional demand on our infrastructure leads to the conclusion that we must take advantage of this opportunity.

“But it’s got to be a simple system, easy to operate and easy to understand. It’s got to be fair.

“We have to listen to the respondents who objected.”

In August, Aberdeen councillors backed the introduction of a 7% visitor levy for the city.

Earlier this year, councillors in Edinburgh and Glasgow approved a 5% charge on overnight stays in hotels, hostels, guest houses, B&Bs and self-catering accommodation.

Several other regions in Scotland are looking at similar plans, including Highland Council.

Reporting by local democracy reporter Andrew Stewart.