UKHospitality Scotland warns cruise levy ‘would stifle growth’

UKHospitality Scotland has warned that imposing a tax on cruise ships north of the border could hit economic growth and jobs.

 

The hospitality trade body issued its warning as it responded to the Scottish government’s consultation on a potential charge on cruise ships and passengers.

 

The body said cruise levies “would stifle growth and reduce job creation” in Scotland’s coastal communities.

 

The Scottish government launched its cruise ship levy consultation on February 27 and it closes on Friday (May 30).

 

UKHospitality Scotland said cruise tourism comprises 0.5% of total tourism visits to Scotland yet generated £130 million for local economies in 2023.

 

“The benefits of cruise tourism have boosted coastal communities, with Scottish ports benefiting from the managed growth of cruise tourism. This has mainly occurred due to a rise in luxury and expedition cruising to Scotland,” it said in a statement.

 

The body urged the Scottish government to consider the economic implications of introducing a charge on cruise ships, particularly as accommodation businesses across the country “grapple” with Visitor Levy legislation, with councils setting out their plans to introduce a charge on tourism.

 

Leon Thompson, executive director of UKHospitality Scotland, said: “The cruise industry is a major contributor to the Scottish economy and a key part of regional growth, supporting businesses across the country, as well as thousands of jobs. The majority of these jobs are in hospitality and tourism, in businesses that benefit from these visits.

 

“Many hospitality businesses have adapted their offer to tap into this lucrative market.

 

“For many, this is an essential part of revenue generation, extending the season and bringing visitors that would otherwise not have materialised.

 

“At a time of increased competition for cruise tourism, Scotland must not be priced out of the market and lose the clear advantage the country has, along with the economic growth and jobs it delivers.

 

“It is already more expensive to visit our islands, so why seek to increase those costs and deprive island communities of economic opportunity?”

 

Issuing the consultation in February, the Scottish government said: “Local authorities could be given the optional power to introduce a tax on cruise ships that visit their areas in future.

 

“The Scottish government is seeking views on the practicalities of such a levy, as well as the potential market implications and effect on local economies and communities.”

 

Other trade bodies such as Clia and the Scottish Passenger Agents’ Association have also been lobbying on behalf of the cruise tourism sector in Scotland.

 

Picture of cruise ship at Tobermory, Isle of Mull, Scotland, by Noel Boardman/Shutterstock.com

 

More: SPAA forges new national business alliance to bolster voice of travel trade

 

Clia in talks with Scottish government over potential cruise tax