McArthur argues the existing visitor levy on overnight accommodation does not properly reflect the way tourism works in island communities such as Orkney.

Cruise passengers and people travelling in motorhomes account for a significant part of the islands’ visitor economy, while an accommodation based levy would fall on those staying overnight with local providers.

He believes allowing councils to introduce a charge at the point of entry could spread the burden more fairly across visitors.

The Deputy First Minister has agreed to engage further with McArthur on the proposal as the government considers its next steps following the consultation.

McArthur said:

“The existing visitor levy on overnight accommodation simply doesn’t reflect the realities of the visitor economy in island communities like Orkney, where cruise ship passengers and motorhomes make up a significant proportion of local tourism.

“I know from my own engagement with local tourism representatives, the council and other stakeholders that there are serious concerns about the disproportionate burden the current visitor levy would place on small businesses and accommodation providers.

“The option of a point of entry levy would provide a fairer, simpler and more effective solution.

“I welcome the Deputy First Minister’s willingness to engage on this matter, and I will continue to reinforce the importance of making sure a point-of-entry levy is included in any work to take forward the findings of the government’s consultation.”