Orkney Islands Council Decides Against Overnight Visitor Levy

The introduction of an overnight visitor levy in Orkney will not go ahead at this time following a recommendation passed at today’s (23 September 2025) meeting of the Council’s Policy and Resources Committee.  

The decision follows extensive feasibility investigations, including stakeholder engagement with the local community, businesses and visitors. 

Similar decisions have been made in recent weeks by Shetland Islands Council and the Comhairle nan Eilean Siar.   

The Visitor Levy (Scotland) Act 2024 gives local authorities discretionary power to charge overnight visitors staying in specified types of accommodation.  

However, the Council’s commissioned study - conducted in partnership with Shetland Islands Council and Comhairle nan Eilean Siar - found strong opposition to the overnight levy model among local residents and businesses, significant logistical issues of applying the levy and limited economic benefit.  

Stakeholders also raised concerns about fairness, particularly the exclusion of high-impact visitor segments such as cruise ship passengers, and the potential risks to Orkney’s tourism economy.  

While there was broad support for a levy that funds infrastructure and environmental conservation, the preferred models were those targeting all visitors at entry points, such as a cruise ship levy or a point of entry levy – which is not included in the legislation at this point. 

A cost-benefit analysis showed only marginal returns for an overnight visitor levy, with seasonal models slightly outperforming year-round options. However, the financial viability was deemed borderline, especially when factoring in administrative complexity and long-term risks. 

The Policy and Resources Committee therefore backed the officer recommendation not to progress with an overnight visitor levy at this time and to continue engaging with the Scottish Government and other stakeholders on alternative levy models better suited to island contexts. 

Council Leader Heather Woodbridge chairs the Policy and Resources Committee.  She said: “As a Council we are committed to sustainable tourism and to advocate for fair, practical solutions that meet the needs of an islands’ community. This means supporting local infrastructure and environmental goals in ways that protect Orkney’s communities and preserve its appeal as a destination.  

“Today’s excellent report from officers laid out in detail the full implications of introducing an overnight visitor levy at this time, allowing elected members to make their decision from an informed and data driven position.  Key to that was the significant engagement from our community and industry on these important issues – and I thank those who took the time to give their views during the consultation process.  

“Ultimately, that report found that there were significant issues with the introduction of an overnight visitor levy in Orkney and Councillors unanimously agreed not to progress it any further at this time.  We will continue to engage with the Scottish Government to explore other options including a point of entry type solution.”