What a Cruise Levy Could Mean for Tourism in the North Highlands

In April 2025, along with a welcome appearance from the often-elusive sunshine, the cruise season launched in style. Over 2,600 passengers were welcomed ashore at Scrabster Harbour as the 251-metre-long cruise ship AIDAsol arrived in port from neighbouring Invergordon. Shuttle services transported passengers to Thurso town centre, where a carnival-like atmosphere awaited, supported by the warm, Highland hospitality of our local businesses and dedicated teams of volunteers.

An itinerary of coach tours gave visitors the chance to explore the very best of the region, from the Castle of Mey and John O’Groats to local distilleries and guided tours. As the ship departed across the Pentland Firth, local pipers and Highland dancers wished a fond farewell to passengers – “haste ye back,” as they say.

These return cruise visits represent much more than a fleeting tourism opportunity and are, in truth, the result of sustained investment, strong partnership working, and, of course, our renowned community spirit. Since the arrival of the first cruise ship at Scrabster Harbour in 2004, the region has worked hard to build its reputation as a welcoming destination of choice. The £18 million redevelopment of the St. Ola Pier in 2022 was a significant milestone in this plan, enabling the harbour to accommodate and attract larger vessels and increasing both the frequency and scale of its cruise calls.

For the North Highlands, where tourism is an important but often fragile sector, constrained by seasonality and infrastructure challenges, this growing cruise market plays an significant role in the tourism landscape. They help to diversify income streams, bring increased footfall to our local businesses, create new opportunities and help support employment. Of course, while cruise visitors only experience a snapshot of what the North Highlands has to offer, we hope that the warm, authentic welcome they receive will turn first-time visits into lifelong connections.

However, it’s not all smooth sailing ahead. The Scottish Government’s current consultation on proposals to grant local authorities new powers to impose a cruise ship levy risks unsettling the waters around the coast of the Highlands. While there is clear merit in reinvesting such levies into communities and tourism infrastructure, additional cost burdens would most certainly deter cruise visits to smaller, less established ports like Scrabster.

These proposals seriously risk undermining the years of dedicated work invested in growing Scrabster’s reputation and would place disproportionate strain on peripheral destinations and fragile regions, such as our own in the far North. Rather than introducing a cruise ship levy, the same goals could be achieved through collaborative visitor management approaches and targeted infrastructure funding in cruise destinations.

The consultation remains open for feedback until 30th May 2025, and I encourage local businesses and community members to respond. We must use our voice to ensure our region is fully considered and not inadvertently overlooked in this process.

 

Business Insight, Ryan Maclean, Trust Manager, Scrabster Harbour

The arrival of each cruise vessel at Scrabster represents more than a maritime milestone, it symbolises the coming together of community, industry, and place. Behind every successful visit lies a significant amount of work: harbour planning, coordinated transport, security arrangements, local business engagement, and volunteer support, all aligned to ensure a smooth and memorable passenger experience.

It’s a collaborative effort that has developed over years and demonstrates what’s possible when a region invests in itself. The 2022 completion of St. Ola Pier was a strategic step forward, enabling Scrabster to host larger vessels like AIDAsol and to provide deeper water berthing options. With each successful call, Caithness strengthens its reputation as a desirable northern port of call, distinct from Scotland’s larger cruise hubs.

For remote communities like ours, the cruise sector is particularly valuable. These visits bring in new revenue, support seasonal employment, and extend the reach of local products and services to global audiences. More importantly, they offer a rare platform to tell our story, our heritage, culture, and natural beauty, to a wide and diverse audience.

However, proposals for a cruise levy present a real risk to this progress. While we understand the intent, the potential unintended consequence is clear: fewer ships choosing smaller ports, where margins are tighter and competition for itineraries is strong. Cruise operators must weigh each stop on economic and logistical grounds. A levy, however modest, could see rural destinations like Scrabster priced off the map in favour of larger, more commercially flexible ports.

Our region cannot afford to lose ground now. We are not resisting change, we are asking that decisions be made with full awareness of how rural ports operate and the fragility of early-stage tourism success.

We support thoughtful, place-based solutions. Sustainable tourism is not achieved through one-size-fits-all levies, but through investment in visitor management, local partnerships, and long-term planning. We remain committed to playing our part and to continuing the progress made so far, but we ask that national policy reflects the unique circumstances of communities like ours.

Let’s ensure Caithness remains open, attractive, and competitive for cruise because the benefit reaches far beyond the quay.

 

Scottish Government’s Cruise ship levy: consultation is open for feedback until 30th May 2025. Further information can be found online here: https://www.gov.scot/publications/consultation-potential-local-authority-cruise-ship-levy-scotland/

We are delighted to welcome Donna Chambers to Caithness Chamber of Commerce as our inaugural Deputy Chief Executive Officer. Donna brings a wealth of leadership experience across education, healthcare, hospitality, and public sectors, making her a strong addition to the Caithness Chamber team.

Donna Chambers, Deputy CEO with Trudy Morris, CEO, Caithness Chamber of Commerce

Donna will lead the Chamber’s Destination Strategy for the North Highlands, helping to position the North Highlands as a premier place to live, work, study, visit, and invest. She is passionate about taking a holistic, place-based approach to regional development, aligning tourism, talent attraction, and economic growth to deliver long-term benefits to the North Highlands.

Born and raised in Caithness, Donna spent over 25 years in Oxford, where she held senior leadership roles in private healthcare, including as Managing Director of Oxford Ortho-Medic Consultancy. She returned to the Highlands eight years ago to take on the position of Practice Manager at Canisbay & Castletown Group Practice, where she led the practice through the operational challenges of the COVID-19 pandemic before taking on the role of Assistant Director of Student Services at UHI North, West & Hebrides. Here, Donna led the integration of student support services across 19 campuses, covering a geographic area larger than Wales. With a focus on operational excellence, Donna’s collaborative leadership played a key role in enhancing student recruitment, support, and retention at the University.

Donna’s transformational change leadership and impactful partnership working will be an asset in Caithness Chamber’s mission to champion sustainable economic development in the North Highlands. We are excited to welcome Donna to the team and look forward to working together to secure a vibrant future for our region.

Caithness Business Fund has announced the launch of a new pilot Graduate Placement Scheme, aimed at helping small and medium-sized enterprises (SMEs) across Caithness and North Sutherland attract and retain graduate talent.

Backed by NRS Dounreay and the Nuclear Decommissioning Authority (NDA), the scheme will provide eligible businesses with grant funding covering up to 70% of salary costs for a two-year period to employ a graduate in a newly created role.

The initiative is designed to support businesses working in key regional growth sectors—including energy, food and drink, space, and tourism—as well as those operating in areas with recognised skills shortages.

Applications are now open. As this is a pilot scheme, funding is limited and will be allocated on a first-come, first-served basis. Interested businesses are strongly encouraged to contact Caithness Business Fund before submitting an application.

This announcement follows Caithness Business Fund’s celebration in April 2025 of a £250,000 investment from Focus North partners NRS Dounreay and the NDA. This funding not only enables the launch of the pilot graduate scheme but also strengthens the Fund’s two existing apprenticeship grant programmes.

Trudy Morris, CEO of Caithness Chamber of Commerce and Director of Caithness Business Fund, said:

“Developing local talent, opening up meaningful career opportunities, and addressing outward migration of skills from the region are essential to securing a prosperous future for the North Highlands. We’re delighted to launch this innovative new scheme.

The substantial backing from NRS Dounreay and the NDA reflects the Fund’s strong track record—supporting the creation of 13 new apprenticeships over the past year alone. The Fund is already helping to build a stronger, more resilient workforce, and this latest investment enables us to support even more businesses and reinforce a message of opportunity and growth across the region.

This targeted support will allow local companies to directly access grant funding to attract graduate talent into their business, nurturing a vibrant and diverse business landscape and helping to create a future-ready workforce.”

Find Application Guidelines online here or get intouch with the Fund team to find out more: Tel: 01847 500104 and Email: enquiries@caithnessbusinessfund.co.uk

 

The Defence and Security Accelerator (DASA) is pleased to launch Phase Two of our fast paced Themed Competition, Innovation in Support of Operations. Run on behalf of the Ministry of Defence, this competition aims to identify and accelerate innovative solutions and techniques, ensuring they can be scaled and deployed faster than our adversaries.

There are five new Challenge Areas:

• UAS Propulsion
• Repair of 155mm Artillery barrels
• Autonomous navigation systems for UAS and USVs
• Seekers
• UAS detect and destroy

The UK Government is continually assessing lessons from world events. From these lessons, we seek to rapidly adopt solutions that enhance our military and economic advantage. This competition is designed to identify nearly-ready solutions and techniques that can be accelerated into scalable and deliverable effect faster than our adversaries.

Do you have a suitable innovation? Read the full competition document and submit a proposal.

In short:

• DASA has launched Phase 2 of Innovation in Support of Operations
• Funded by the MOD

Learn more and submit a proposal

 

The Defence and Security Accelerator (DASA) is pleased to launch the Maritime Innovation Challenge 2025 as a new AUKUS Competition. Following the ministerial announcement in December 2023 to launch an innovation challenge series under the AUKUS partnership, this competition is the second iteration of AUKUS Pillar 2’s Innovation Challenge Series. The challenge has been trilaterally agreed and is being run as a single multi-stage competition, across the Advanced Strategic Capabilities Accelerator (ASCA) in Australia, the Defence and Security Accelerator (DASA) in the United Kingdom and the Defence Innovation Unit (DIU) in the United States.

AUKUS partners are seeking to research and develop innovations to enable the synchronisation and teaming of multiple undersea systems.

In short:

• DASA has launched a new AUKUS Competition: Maritime Innovation Challenge 2025.
• This is the second iteration of AUKUS Pillar 2’s Innovation Challenge Series which will run concurrently in Australia, the United Kingdom and the United States.
• The UK competition run by DASA is open to all nations, although entrants from Australia or the United States can refer to their national competition page if they prefer.
• Up to $8m USD in funding is available.

Learn more and submit a proposal

 

Trudy Morris, CEO, Caithness Chamber of Commerce: ” The North Highlands beckon those in search of adventure, new experiences, opportunity, and purpose.  Renowned for our breathtaking scenery, captivating archaeology, deep-rooted history and warm Highland welcome, this year’s Venture North Tourism Gathering at the outstanding Royal Marine Hotel in Brora was no exception. With an impressive turnout from local businesses and industry leaders, the event was as a fantastic showcase of the strength, ambition, and collaboration within our tourism and hospitality sector.

The day was packed with valuable insights. Marc Crothall from the Scottish Tourism Alliance gave us a key industry update, while Chris Taylor from Visit Scotland provided expert insights into national trends, visitor behaviours and opportunities. We also heard from North Highland Initiative, SCOTO, the Flow Country Partnership, and Brora Heritage—each bringing their own perspective on how we can shape the future of tourism in our region.

With Caithness Chamber of Commerce now incorporating the destination management organisation Venture North, the Chamber represents some 300 businesses, and we are taking bold steps to ensure the North Highlands remain not just a place to visit, but a place to call home – a thriving, vibrant region where businesses, communities, and individuals can flourish.

Caithness Chamber of Commerce Team at the Venture North Tourism Gathering 2025

At a time of economic uncertainty, it is more important than ever that our sector has strong leadership, strategic investment, and tailored business support. One of the key announcements of the day was the launch of our new holistic Destination Strategy—a forward-thinking blueprint to establish the North Highlands as a both destination of choice and a destination for living. Under the sister brands of Venture North and Live North, the strategy seeks to enhance the tourism offering, elevate the North Highlands as a world-class, sustainable tourism destination, increase visitor spend and longer stays and make the region a place to call home through a dedicated talent attraction and relocation support initiative.

One topic that remains a big concern for businesses is the proposed Highland Council Visitor Levy. At Caithness Chamber, alongside our Highland chambers of commerce colleagues (Cairngorm, Inverness and West Highland), we’ve been working hard on this—engaging with Highland Council, the Scottish Government, and local MPs to make sure our tourism sector’s voice is heard. Our commitment to advocacy is unwavering, and we’ll continue to push for policies that support rather than hinder our industry.

Whilst we spoke about these challenges and the work undertaken to-date, the Gathering was focussed on the future and the immense opportunities which exist in the region.

The North Highland Initiative and SCOTO led delegates in a workshop to review and discuss the emerging themes from its community led ‘Press Pause’ pilots across the Highlands.  Delegates enthusiastically debated themes such as managing motorhomes, revenue generation for community initiatives and managing visitor expectations.

We heard from the Flow Country Partnership on their plans and aspirations for 2025 and beyond and saw clear opportunities emerge for creating authentic visitor experiences through business collaboration.

We were also joined during the day by our Developing the Young Workforce (DYW) North Highland team with students from Dornoch Academy, and Wick and Thurso High Schools, who gave delegates insight into their challenges as young people entering the world of work, and what businesses could do to help.

The day finished on an inspirational high with the Brora Heritage team taking us on a whistlestop tour of their immense achievements over the last 16 years when they were handed the keys of the old Clyne school building.  With escalating costs due to several economic factors, the community organisation has raised a phenomenal sum of c£5.5m in 5 years.  Due to open this summer, this fantastic facility, strategically positioned on the A9 at the north end of Brora, will house the community heritage centre, museum, retail area, café and a ‘WOW’ factor yet to be revealed. A real testament to what can be achieved through collaboration and leadership.

We are grateful for the support of our public sector partners NRS Dounreay, Highlands & Islands Enterprise and Visit Scotland. Our Venture North Tourism Gathering was a fantastic reminder of what we can achieve when we work together. The enthusiasm, engagement, and shared commitment to our region’s future were truly inspiring.”

Trudy Morris, chief executive of Caithness Chamber of Commerce, argues that a fresh new look is needed for the region’s proposed ‘tourist tax’.

Trudy Morris, Chief Executive of Caithness Chamber of Commerce.

 As I sit down to write this column the first spring bulbs are emerging from the soil and the days are beginning to stretch. It seems that spring is finally arriving and with it the promise of a busy year for our tourism industry. Each year, the north Highlands attracts close to 800,000 visitors, drawn to our unique landscape, rich heritage and warm communities. We have a vibrant and resilient hospitality sector in the Highlands, which has stood together through tough financial times and the ups and downs of the post-Covid economy.

Today, the issue that looms the largest is the proposed Highland Visitor Levy. The visitor levy – more informally known as a ‘tourist tax’ – is a Scottish Government proposal to add a percentage charge to overnight accommodation. At a regional level, Highland Council is proposing a 5% rate, which it says will generate income to invest into tourism infrastructure.

As CEO Caithness Chamber of Commerce, I work closely with the other three highland chambers of commerce – Cairngorm, West Highland and Inverness – and together we represent more than 1,200 businesses. The Highland Visitor Levy is the number one issue currently filling our inboxes, and our members have raised serious and thoughtful concerns.

In December, we came together as four chambers to jointly call for Highland Council to pause the implementation of the levy. Since then, we have engaged closely with members, and while a slight majority support the principle of a visitor levy in some form, there is no support for the proposal as it currently stands.

Last month, Highland Council Convener Bill Lobban wrote to Ivan McKee, Minister for Public Finance, to express the Council’s preference for a flat rate levy instead of a percentage fee. The Highland Chambers fully endorse this amendment and have also written to the Minister asking for changes to the legislation. Our accommodation providers have told us a percentage-based rate will be burdensome to collect, and while Highland Council will recoup its own administration costs of around £550,000, there is no compensation planned for businesses.

Some of our members have been kind enough to share their results with us, and we are convinced that most accommodation providers can’t afford to pay this levy. The unintended consequences could be the closure of some of our businesses, leading to a loss of local employment and reduced visitor numbers.

Supporters of the levy say that businesses don’t pay the tax, tourists do, but when you dig deeper it’s clear that this is not the case. First of all, the levy is not only paid by visitors – people from across the Highlands doing business in Inverness will pay, and if you’re visiting relatives in hospital you’ll pay too. Secondly, because the rate is rolled into the room rate and the accommodation providers’ turnover, it is subject to VAT and constitutes a double tax.

Visitors to the north Highlands add the best part of £200m to our economy, but that vital tourist spend could well reduce when a visitor levy is added to the cost of a holiday alongside the existing pressures created by the cost of living crisis. There is a very real possibility that the levy will do more harm than good.

I am aware of concerns in the area about over-tourism and the impact of increased visitor numbers. Those challenges require a widespread public awareness campaign around responsible tourism, coupled with significant investment in our tourism infrastructure. Highland Council estimate they will receive around £10 million in income from the levy, and we share their desire to deliver improvements in services for the benefit both of locals and visitors. However, this specific levy proposal is not the right vehicle. It comes with scant detail around how the money would be collected, how businesses would be compensated and – crucially – how the money would be spent.

For those reasons, the Highland chambers have asked the council to undertake an independent impact assessment and set out a detailed plan for at least the first three years’ investment. That will require a pause in the implementation – not a short one, but one that allows sufficient time for a complete redesign and a more considered engagement process. Please join us by adding your voice to the consultation by the end of March.

 

Members View: David Whiteford, Chair of Highland Coast Hotels

Highland Coast Hotels has seven hotels employing up to 240 people at peak season and spending over £3 million on local supply chains, so I am writing today with the coalface perspective on this proposed Highland Visitor Levy.

In the past I have been a keen proponent of flat rate tourist levies.  They can be seen all over the world and operators I meet are positive about them because they’re easy to administer and spent wisely on tourism infrastructure improvements. That is not the case with this proposal, which is pitched at a 5% levy – with no option in the consultation document to suggest a lower level.

To give some backdrop to this, I sadly have to paint a pretty bleak picture of our sector, which has been hit by blow after blow. The upcoming increase of 1.2% on National Insurance is huge for us and many other hospitality providers. VAT in the UK is the highest in Europe, at 20%, and unlike our UK neighbours we have yet to benefit from the 75% relief on business rates. All of this means the sector has real difficulty offering our guests value for money. We are gradually pricing ourselves out of the market and visitors are voting with their pockets, as well as their feet.

The consultation process from Highland Council has felt like a fait accompli and it’s disappointing to see the ‘copy and paste’ approach from Edinburgh Council, which disregards the specific needs of rural areas. I am also concerned about how the funds raised might be spent. For me the collection body should be VisitScotland, with an area committee making funding decisions. The level of spend should be pro rata with the funds collected in that area and as funds raised by the private sector could be matched by public sector contributions.

I’m also a farmer and whilst I don’t farm camels, I do have straw on the farm, and I really feel this visitor levy, as it is being proposed could well be the last straw for our sector. Please reject it in every way possible, so that we can go back to the drawing board and through proper engagement and industry input, find a better solution for much needed infrastructure development.

Cairngorms Business Partnership, Caithness Chamber of Commerce, Inverness Chamber of Commerce, and West Highland Chamber of Commerce have written today to Ivan McKee, Minister for Public Finance, requesting an amendment to the Visitor Levy (Scotland Act) 2024 (Tourist Tax).

They are calling for local authorities to have the option of setting a flat or banded rate, rather than being required to implement a percentage-based levy.
In December, the four Chambers jointly called on The Highland Council to pause the implementation of the levy. Since then, they have engaged closely with their member businesses, and it is clear that while a slight majority support the principle of a visitor levy, there is no business support for the Highland Council’s current proposal.

On 12 February, Highland Council Convener Bill Lobban wrote to the Minister, reiterating the Council’s longstanding preference for a flat-rate levy and asking whether there is scope to amend the regulations. The four Highland Chambers fully endorse Councillor Lobban’s request.

Highland accommodation providers have raised a number of concerns about Highland Council’s proposal, including:
• A percentage-based rate will be burdensome to collect.
• The levy is subject to VAT.
• The levy will apply to all visitors using overnight accommodation, including Highland residents traveling for business or medical appointments.
• Unlike in other council areas, there is no proposed compensation for businesses to cover the cost of collecting the levy.
• The Highlands’ seasonal tourism economy is not reflected in the proposal, which would apply the levy year-round.

Additionally, accommodation providers feel that key details should have been clarified before the consultation period to allow respondents to make informed choices. These include:
• The collection method is still unknown, meaning the administrative burden remains unclear.
• Highland Council’s plans for spending the levy are less developed compared to other local authorities.
• Highland Council has not yet specified who will sit on its Visitor Levy Forum, so it is unclear who will be advising on spending decisions.

The Chambers continue to work closely with The Highland Council on this issue and are optimistic that substantial changes will be made once consultation responses have been fully considered.

In the meantime, they reiterate their call for a pause on implementation and welcome the Highland Council Convener’s request for the legislation to be amended.

The Defence and Security Accelerator (DASA) has published updated guidance for its Open Call for Innovation service.

The refreshed guidance includes updates to the submission cycles for 2025-26, as well as other updates to information and pre-sift requirements contained within. These updates aim to streamline the application process and provide clearer parameters for innovators.

The new guidance will take effect from 1200hrs 25 February 2025 (GMT). All submissions from this date will need to align with the updated requirements.

We encourage potential applicants to:

• Review the new guidance before submitting proposals
• Check the submission deadlines for 2025-26
• Contact the DASA team with any questions via accelerator@dstl.gov.uk

For full details of the updated guidance, visit DASA Open Call for Innovation and select the link for the current open cycle.