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Artisan jewellery, gift and whisky stores line the main street of the main town on Orkney. The town also has a new sushi shop, providing bento boxes and matcha cheesecake.

Historically inhabited by the Norse rulers who ruled the islands, Kirkwall has prospered: it tops the UK’s rankings for cruise ship arrivals, as US, European and Mediterranean tourists flock to remarkable ancient sites such as Skara Brae and its medieval church.

But many local residents are frustrated: accommodating about 450,000 tourists a year, 20 times the local population of twenty-two thousand, has a considerable impact. The islands' small streets are jammed, public buses overwhelmed, the ancient monuments at Brodgar are now enclosed to fix the wear and tear caused by visitors. Some tourists, unable to find toilets, have reportedly been found defecating in the open.

Finding it Difficult to Afford the Costs of Tourism Infrastructure

Finding it hard to fund the costs of constructing additional restrooms, coach parks and walkways to adequately accommodate visitors, the local authority and its business leaders are seeking the power to introduce a novel levy for every tourist who arrives on Orkney, by either boat or flight.

Orkney islands council has joined with the Shetland Islands and Western Isles council to press the Scottish government to approve a point of entry surcharge added to fares set by cruise operators, boat services and the local carrier the regional airline.

Martin Fleet, chief executive of the local family jewellery firm Sheila Fleet, and head of the business group the tourism board, projects that a flat rate five pound fee for each tourist could generate around £2m a year, once operational expenses are subtracted.

“The islands, Shetland, the Outer Hebrides, which have limited residents, have outstanding sites which people want to visit and explore, but we’ve got to ensure that we protect those assets for future generations who reside locally and also those that plan to travel here,” he explained.

“We don’t want people to cease coming here. We just need to be very mindful about how tourism is handled.”

Authorities Considering Tourist Levy Proposals

The Scottish government has confirmed it is considering a point of entry surcharge as part of a broader discussion on introducing a charge specifically for passenger vessels, which councils with busy cruise ports could use for new tourism infrastructure and community amenities.

Local officials emphatically state that visitor charges are required to augment a £647 million shortfall in government funding and to assist in managing the millions of tourists Scotland attracts each year. Outcomes of the consultation are due out soon.

The nation already has the UK’s first law to allow local authorities to implement a “overnight levy” – a visitor levy on accommodations, B&Bs and campsites. The capital's is now active, with tourists currently charged a 5% additional fee on all rooms booked from 24 July 2026 forward, limited at five nights.

Aberdeen and Glasgow are following suit, but other councils across the northern regions have declined that approach, frequently after a backlash from enterprises, arguing a levy on beds is too burdensome and is also off-putting for customers.

Different Approaches for Island Communities

Shetland has turned down a tourist fee; these island groups have “paused” it, hoping a better solution such as a point of entry surcharge arrives.

An industry body, an trade association, has protested that a passenger vessel levy will deter many of the over a million travelers who visit each year, “causing serious consequences for Scotland’s cruise sector, its vulnerable coastal economies, and the nation's reputation as a globally competitive travel hotspot”.

Orkney council argues a point of entry levy considers all tourists fairly. This includes the two hundred fourteen thousand passenger liner visitors who landed there in last year and the 173,000 who came by boat and air, including RV users, campers and lodging patrons, and those on personal boats.

The council and Historic Environment Scotland, the organization which protects the islands' ancient UNESCO site, are immersed in an exhaustive project to construct a recently planned visitors centre, bus parking, access paths and toilets to accommodate crowds at the ancient stone circle and prehistoric settlement.

Partially financed by the islands growth deal established by the national administrations, that could take up to a decade to realise: building on a protected heritage site is a careful undertaking.

Local and Industry Viewpoints

Christie Hartley, the authority's sustainable tourism team manager, stated the national authorities needed to outline its plans promptly, to prevent the shipping industry “getting riled up”, but she explained a levy would advantage all sides.

“In general, there is no connection usually between ship operators and the local residents that they sell – they market two things: the experience of their ships and our places,” she said.

While they have a very strong relationship with coach companies and harbour authorities, “how about the communities that we have a responsibility to protect and serve? This is a massive opportunity for us to truly develop those relationships to shared advantage.

“By funding in facilities, they can enhance the visit for their guests, they can increase prices, they can have the security of being certain what they’re going to get. It's well known we have problems with the lack of toilets and aspects in our delicate locale that are challenging to manage with the volume.”

A local councillor, a councillor and head of Orkney’s planning and facilities board, said tourists are more and more eco-conscious and conscientious. “There is an opportunity there: to have a good system in operation, to have a good relationship and for this levy to actually become quite meaningful,” he concluded.