Overview

• The policy and resources committee decided on Monday to drop plans for an overnight charge after a feasibility study jointly commissioned with Orkney and the Western Isles.
• Officials concluded the risks outweigh the benefits, estimating a 5% levy could raise under £1 million over a decade if 30% of visitors are exempt while adding paperwork for accommodation businesses.
• Council leader Emma Macdonald said the levy does not make sense for Shetland, and deputy leader Gary Robinson argued it targets problems seen in Edinburgh rather than remote islands.
• Councillors will examine alternatives such as point-of-entry or cruise-ship levies, with the Scottish Government’s separate cruise-levy consultation still awaiting a decision.
• Cruise tourism is substantial locally, with 123,900 passengers across 129 ships in 2023 compared with 88,900 visitors by air or ferry in 2024, even as cities like Edinburgh and Glasgow advance 5% accommodation taxes.