Local politicians in Shetland have dismissed proposals to introduce a tourist tax in the remote region of the UK. Instead, they have opted to explore alternative methods of generating income in collaboration with the Scottish Government. The decision to reject the tourist levy was made during a meeting of the Shetland Islands Council’s policy and resources committee. Council leader Emma Macdonald opposed the tax, deeming it unsuitable for their circumstances.
Recent Scottish legislation grants councils the power to implement a levy on overnight stays to boost revenue. Despite the thriving tourism industry in Shetland, projections suggest that a five percent levy, even with exemptions for 30% of visitors, would yield less than £1 million over ten years. Earlier this year, consultants were appointed by councils in Shetland, Orkney, and the Western Isles to investigate the feasibility of a visitor levy scheme in each region.
Deputy Gary Robinson expressed his opposition to the visitor levy, indicating that it seemed more appropriate for addressing tourism challenges in Edinburgh. He highlighted the high costs for tourists traveling to Shetland and advocated for greater autonomy for the local authority in revenue-generating decisions. Robinson also noted that the recent increase in NorthLink ferry fares could potentially raise more revenue than the proposed levy. Additionally, local businesses have reportedly expressed disapproval of the visitor levy scheme.