Cruise Scotland has warned that the Scottish Government’s proposed cruise ship levy risks delivering serious consequences for Scotland’s cruise sector, its fragile coastal economies, and the country’s reputation as a globally competitive tourism destination.

In its formal response to the Government’s consultation, Cruise Scotland — representing Scottish ports, tourism bodies, and cruise operators — outlined clear and mounting concerns that a discretionary levy, imposed at the local authority level, could act as a disincentive to cruise lines and erode years of investment and collaboration.

Rob Mason, Chair of Cruise Scotland, said: “Scotland must decide whether it wants to attract or deter a sector that delivers over £130 million annually to the national economy and sustains jobs in some of the most remote and economically vulnerable communities.

“We must not treat this as a simple fiscal instrument. If mishandled, it will cost jobs, suppress local business growth, and unravel a tourism model that has quietly been working for communities often left behind.”

Cruise Scotland’s response underlines that the current proposal follows policy ambiguity, unclear objectives, and insufficient analysis, urging Scottish Government to “make it a priority to establish a clear rationale for the cruise industry, which needs a clear and transparent statement of intent on what is the objective of the levy.”

The response continued: “Any prolonged uncertainty regarding a potential levy is damaging, as cruise operators and ports are unable to plan accordingly and effectively. Sudden implementation of a levy without phased approaches or stakeholder consultation would lead to significant operational disruptions and economic setbacks.”

The response cautions against devolving fiscal powers to councils in a way that fragments Scotland’s cruise industry and pits local authorities against one another. It also expresses opposition and some serious concerns around proposals that would require port authorities to act as tax collectors.

There is also the risk that any levy could also deter homeporting in Scotland, where ships start or end itineraries, removing the highest value economic impact from the market.

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Rob Mason, Chair of Cruise Scotland, added: “Cruise Scotland fully acknowledges the need for continued and targeted investment in destination infrastructure to support cruise tourism. However, it strongly advocates for such investment to be guided by a clear national strategy, developed transparently and in close collaboration with industry to ensure any new measures enhance Scotland’s cruise offering.

“We must remember that this is a moveable market that does not need to come to Scotland, despite all we have to offer, and neighbouring regions in the North Atlantic and Northern Europe are strongly positioned to benefit from any displacement.”

Cruise Scotland remains opposed to the proposed levy but has called for constructive engagement with Government.