A new consultation on the possible introduction of a levy on cruise ship passengers sends the wrong message to an industry that has only just recovered from the economic shock of the pandemic, the British Ports Association (BPA) warns today.
The Scottish Government is seeking views on giving local authorities in Scotland the power to introduce a cruise ship levy in all, or part, of their area if they choose to do so. The British Ports Association’s Scottish Ports Group is alarmed at the potential introduction of a local tax that has no aims or objectives attached and would, at most, raise only modest sums for local authorities.
The Government’s own analysis highlights five ports around the world that have introduced taxes specifically on cruise ship passengers, and these have all been with the explicit aim of suppressing the number of vessel calls. The Scottish Government have previously acknowledged the significant benefits that cruise tourism brings to ports and their hinterland and should be working with industry to promote further sustainable growth.
Cruise calls have also driven significant investment in port infrastructure in recent years, which has been made on the basis of a government that welcomes tourists to Scotland.
It is alarming to see Government pressing ahead with a consultation on plans that have no clear aims.
No port or country anywhere in the world has taxed cruise ships for any reason than to reduce the number of calls. Local levies in parts of Scotland will alarm and confuse cruise industry planners, who book visits years in advance, and threaten growth and investment across Scotland as vessels tend to call in multiple ports.
To raise any significant revenue, a levy would need to be set at a level that would very likely deter cruise ships calling in Scotland. The net result would be a loss to the Scottish economy with no real boost to council coffers.
The ports and cruise industries are both open to engaging with national and local governments to solve specific issues and always have been. A new tax on a successful and growing industry will simply make Scotland less attractive to calls in what is a highly competitive and mobile market.
Notes
- The consultation can be found here.
- Contact mark.simmonds@britishports.org.uk (07387090955) for further information and quotes.