Tourism Taxes: What Travelers Should Be Aware Of In 2024

[editor]

Key Insights

Tourism taxes are poised to see an increase in the coming year, with sought-after destinations such as Amsterdam and Venice rolling out new fees.

These additional charges are being introduced to help destinations generate funds for tackling over-tourism and pursuing eco-friendly initiatives.

Typically, European countries include tourist taxes within accommodation fees, which can vary depending on factors like the length of stay, the popularity of the destination, the season, and the hotel's star rating.

Travelers should anticipate higher tourism taxes in several European destinations in 2024, as governments aim to stimulate local economies and promote sustainability.

According to a 2020 report by Group NAO and GDS-Movement, an increasing number of countries, especially in the US and Europe, are implementing tourism taxes.

Guy Bigwood, a representative from the Global Destination Sustainability Movement, highlights that more destinations are adopting sustainability initiatives, and these fees can provide essential funding to achieve their eco-friendly goals.

Tourism taxes, particularly assessments and levies, can aid in this endeavor.

Guy Bigwood from the Global Destination Sustainability Movement

He further suggests that as tourism returns to pre-pandemic levels, authorities are considering taxes and assessments as tools to manage visitor numbers.

In Greece, an increase in the existing hotel tax is set to help combat natural disasters linked to climate change. In Dubrovnik, a tariff imposed on cruise ships will be directed towards improving the city's ancient infrastructure. Below is a list of European destinations planning to introduce new tourism taxes.

Amsterdam, Netherlands

Amsterdam, already known for having Europe's highest tourism tax, is planning an increase in rates for 2024. The city will raise the hotel room tax from seven to 12.5 per cent, while the tariff for cruise-ship passengers will rise from €8 to €11 per person per day.

According to Hester van Buren, Amsterdam's deputy mayor for finance, the additional revenue will be allocated to addressing the consequences of over-tourism, maintaining cleanliness, and resolving neighborhood issues.

Barcelona & Valencia, Spain

Barcelona is set to raise its municipal tourism tax in April 2024, focusing on attracting high-value tourism rather than mass tourism. The tax, currently at €2.75 per night, will increase to €3.25. Valencia will also introduce a tourist tax, ranging from 50 cents to €2 per night, applicable across all regions of Valencia.

Iceland

Iceland has confirmed plans to introduce a tourist tax in 2024, although the exact amount remains undecided. Prime Minister Katrín Jakobsdóttir states that the fee will be reasonable and contribute to sustainability programs, aligning with Iceland's goal to achieve carbon neutrality by 2040.

Olhão, Portugal

Olhão, the largest fishing port in Portugal's Algarve region, initiated a tourist tax in June 2023, with half of the revenue earmarked for addressing the negative impact of tourism. Under the new measure, visitors will be required to pay €2 per night during the high season and €1 during the rest of the year.

Venice, Italy

In 2024, tourists visiting Venice may encounter a €5 fee, applicable for up to 30 non-consecutive days. The city is dedicated to managing mass tourism, and this fee will be levied on visitors over 14 years old through a digital portal with a downloadable QR code.

Denmark

Denmark is planning to introduce a "passenger tax" for flights in 2025, with charges ranging from €8.4 for flights within Europe to €51 for long-distance flights by 2030. The revenue generated will be directed toward promoting 100 per cent sustainable fuels on domestic flights.

European Union

Beginning in 2025, non-EU residents entering Europe without specific visa requirements will need to register through the European Travel Information and Authorization System (ETIAS), at an approximate cost of €7 per person. This electronic visa waiver enhances border security and safeguards EU citizens.

Country Where does the tax apply? How is the price calculated? Price

Austria Vienna, Salzburg Based on the destination, nights spent, and visitation season. €3.2

Belgium Bigger cities like Brussels, Bruges, and Antwerp Number of nights spent, destination, rate per room, and hotel ratings. €7.50

Bulgaria All hotels Destination and hotel ratings. €1.50

Croatia All destinations are Mainly based on the season. €1.33

Czechia Prague Destination, per person, per night spent. Less than €1

France All country Destination, per night spent, and hotel ratings Up to €4

Germany Bigger cities Destination and hotel ratings 5% of the hotel bill

Greece All destinations Hotel stars, number of rented rooms. €4

Hungary Budapest Destination and nights spent. 4% of the room price

Italy Popular destinations Destination, nights spent, type of room. Between €3 and €7 per night.

Netherlands All country Destination and hotel ratings. 7% of the room price

Portugal 13 Municipalities Destination, nights spent €2

Slovenia All country Destination, hotel rating €3

Spain Popular destinations Destination, visitor’s age, nights spent, hotel ratings, season. €4

Switzerland All country Location, per night, per person.


Certainly, here are the pros and cons of tourism taxes:

Pros:

1. Funding for Local Development: Tourism taxes can provide a significant source of revenue for local governments. These funds can be used to improve infrastructure, maintain tourist attractions, and invest in public services that benefit both residents and visitors.
2. Combatting Over-Tourism: Tourism taxes can help control the number of tourists in popular destinations, reducing overcrowding and preserving the environment. This can lead to a more enjoyable experience for tourists and a better quality of life for locals.
3. Sustainability Initiatives: Some destinations use tourism taxes to support sustainability programs, such as promoting eco-friendly transportation or conservation efforts. This contributes to the protection of natural resources and reduces the environmental impact of tourism.
4. Fair Contribution: Tourism taxes distribute the cost burden more evenly among tourists, ensuring that those who benefit from local services and infrastructure also contribute to their upkeep. This can be seen as a fair way to finance the costs associated with tourism.
5. Border Security: Electronic visa waivers, like the European Travel Information and Authorization System (ETIAS), funded by tourism taxes, can enhance border security by providing a standardized screening process for non-EU residents entering Europe.

Cons:

1. Increased Travel Costs: Tourism taxes add to the overall cost of travel for tourists, potentially discouraging budget-conscious travellers from visiting certain destinations. This can harm the tourism industry.
2. Complexity and Variability: The calculation and collection of tourism taxes can be complex, with varying rates based on factors like destination, season, and hotel ratings. This complexity can be confusing for tourists and challenging for businesses to administer.
3. Potential for Unintended Consequences: While tourism taxes aim to reduce over-tourism, they may lead to a decrease in tourism revenue if not implemented carefully. Destinations heavily dependent on tourism may face economic challenges if visitor numbers decline significantly.
4. Competitive Disadvantage: High tourism taxes may make a destination less attractive compared to other options with lower costs. Travelers may choose alternative locations to avoid excessive fees.
5. Administrative Costs: Collecting and managing tourism taxes can come with administrative costs for both governments and businesses, including the need for tax collection systems and enforcement measures.

In summary, tourism taxes can provide essential funding for local development and sustainability initiatives while addressing over-tourism concerns. However, they can also increase travel costs, be administratively complex, and potentially have unintended economic consequences. The effectiveness of tourism taxes depends on their implementation and the balance between generating revenue and maintaining a competitive tourism industry.

 

[keith]

In light of the increasing push for sustainability, the hike in tourism taxes in various locations across Europe seems like a sensible measure. However, there's an argument to be made about the balance between generating funds and not deterring tourists with high fees. For instance, Amsterdam is raising its hotel room tax significantly, which might prompt potential visitors to opt for other destinations. How are other places managing this balance effectively?

 

[drake69]

In light of the increasing push for sustainability, the hike in tourism taxes in various locations across Europe seems like a sensible measure. However, there's an argument to be made about the balance between generating funds and not deterring tourists with high fees. For instance, Amsterdam is raising its hotel room tax significantly, which might prompt potential visitors to opt for other destinations. How are other places managing this balance effectively?

Responding to keith, I think that's a valid point. Each city has its own strategy, like Venice with its digital portal and QR code system, which not only manages the tax collection but also aims to control the number of visitors. This tech approach might actually enhance the visitor experience by reducing overcrowding.

 

[zara_k]

It’s absolutely necessary that we see these taxes not just as a financial burden but as a contribution towards maintaining the beauty and sustainability of these destinations. However, it's crucial that the funds are transparently used for the said purposes. Anybody heard how these funds have been utilized in other regions?

 

[mghatiya]

I disagree with the notion that tourism taxes are all beneficial. In some cases, these taxes might just be a deterrent. Look at Iceland; they're planning a new tourist tax but haven't decided the amount yet. This uncertainty could cause hesitation among travelers planning their trips for the next year.

 

[samnichols]

I disagree with the notion that tourism taxes are all beneficial. In some cases, these taxes might just be a deterrent. Look at Iceland; they're planning a new tourist tax but haven't decided the amount yet. This uncertainty could cause hesitation among travelers planning their trips for the next year.

To add to Mghatiya’s point, it’s interesting to consider the administrative angle. Managing these taxes involves setting up systems, which themselves cost money. For example, Denmark is introducing a passenger tax on flights aimed at promoting sustainable fuels. This requires not only collection but also proper allocation and monitoring to ensure the funds are indeed used for sustainability.

 

[maria_gonzalez]

Let me tell you a story from my last visit to Dubrovnik. They’ve implemented a tariff on cruise ships which is supposed to help improve the city's ancient infrastructure. It was fascinating to see the direct impact of our contributions as tourists. The old city looked better maintained than my visit a few years ago, and the locals seemed supportive of the initiative.

 

[cmarchan]

i think iT’s aLL gud to have Tourist taxES if they really go to the right cause. but how can we really check where the money goes? anyone knows how transparent these funds are?

 

[tina_marie]

To build on what cmarchan mentioned, transparency in these matters can inspire greater confidence among travelers. If destinations could provide annual reports or some form of public disclosure on how these taxes are being utilized, it could go a long way. It’s not just about collecting the tax; it’s about showing the positive change it brings.