How US, Mexico, Italy, Spain, Japan, Portugal and UK Are Using Tourist Taxes to Strengthen Their Tourism Sector: New Report You Need to Know

Written By: Mon Talukdar

Mon Talukdar

Driven by a keen interest in travel journalism, I am building my career by reporting on one of the world's fastest-changing industries. At Travel And Tour World, I write about aviation, tourism, hospitality, destination marketing, and major developments influencing global travel. My work focuses on turning complex industry updates into clear, engaging stories that are both informative and relevant. I am committed to factual reporting, careful research, and delivering meaningful insights that help readers stay connected with the latest trends and transformations across the travel sector.

See Full Bio

April 8, 2025 6:27 PM

Image generated with Ai

With global tourism rebounding, countries are increasingly relying on tourist taxes to strengthen their travel sectors by funding infrastructure, managing crowds, and ensuring sustainability. The US, Mexico, Italy, Spain, Japan, Portugal, and the UK are using these levies—applied to hotel stays, short-term rentals, and even vehicles—to generate revenue that supports environmental efforts, urban development, cultural preservation, and tourism services. As travel demand surges in 2024 and 2025, these nations are turning visitor spending into long-term investments, using targeted taxation to balance economic growth with quality, resilience, and a better experience for both tourists and locals.

As global tourism rebounds, many countries are turning to one powerful tool to both manage and fund their booming travel sectors: tourist taxes. From North America to Europe and Asia, governments are leveraging these levies to maintain infrastructure, support sustainability, and improve the visitor experience. Here’s how seven major tourism destinations—the US, Mexico, Italy, Spain, Japan, Portugal, and the UK—are applying tourist taxes in 2024 and 2025, and what travelers need to know.

Mexico – VISITAX in Quintana Roo

In Mexico, the southeastern state of Quintana Roo—home to hotspots like Cancun, Tulum, and Playa del Carmen—requires international travelers to pay VISITAX, a mandatory tourism levy. Introduced in April 2021, the fee is $17.75 USD (or equivalent in CAD, EUR, or GBP) per visitor.

Foreign travelers can pay online before or during their visit and must present a QR code at the airport before departing. The revenue is earmarked for tourism infrastructure improvements across the state.

United States – Hawaii’s Expanded Transient Accommodations Tax (TAT)

The U.S. state of Hawaii has long imposed a Transient Accommodations Tax (TAT) on short-term stays. In recent revisions, the TAT’s scope now includes shelters and vehicles with sleeping accommodations, not just traditional lodgings like rooms, suites, or homes. Any unit rented for less than 180 days is subject to this tax.

These funds are critical to preserving the islands’ ecosystems, supporting local infrastructure, and sustaining tourism-related services amid growing visitor numbers.

Italy – Historic Cities Raise Local Levies

Italy’s most visited cities—including Rome, Venice, Florence, and Milan—have longstanding tourist taxes in place. The fees vary by city and accommodation type, usually ranging from €1 to €5 per night per person.

• Rome: Charges range from €3 to €7 depending on the hotel class.
• Milan: Taxes fall between €2 and €5.
• Venice is also set to introduce an entry fee for day-trippers in addition to overnight taxes.

The collected revenue funds heritage preservation, public services, and transportation systems strained by mass tourism.

Spain – Regional Models and Seasonal Rates

Spain’s approach to tourist taxes is decentralized, with different rules in regions like Catalonia, the Balearic Islands, and the Canary Islands:

• Barcelona: Visitors may pay up to €6.88 per person per night, combining city and regional taxes.
• Mallorca (Balearics): The Sustainable Tourism Tax ranges from €1 to €6, depending on the accommodation and season.
• Canary Islands (Mogán): Introduced a smaller local fee of €0.15 per day.
• New taxes have also emerged in Santiago de Compostela and Toledo, charging between €1 and €2.50 per night.

These levies support environmental conservation, urban upgrades, and local community initiatives.

Japan – Tiered Accommodation Taxes in Major Cities

Japan has a structured accommodation tax system based on lodging costs, enforced in cities such as Tokyo, Kyoto, and Osaka:

• Kyoto (from March 2026): A tiered system with rates up to 10,000 yen per night for high-end stays.
• Tokyo: Rooms priced between 10,000–14,999 yen are taxed 100 yen, and 200 yen for rooms 15,000 yen or more.
• Osaka: Rates range from 100 to 300 yen, depending on the nightly room price.

Revenue supports city services and tourism infrastructure, especially in high-traffic cultural areas.

Portugal – Doubling Down in Lisbon and Porto

Portugal has steadily expanded its tourism taxes. As of September 1, 2024, Lisbon doubled its fee from €2 to €4 per person per night. Porto followed a similar increase.

These hikes are intended to fund urban improvements, promote environmental sustainability, and enhance city services in response to record visitor numbers.

United Kingdom – City-Level Visitor Levies Gain Ground

The UK has introduced local tourist taxes in several major cities:

• Manchester: Since April 2023, applies a £1 per person, per night charge on hotel guests.
• Liverpool: Uses a percentage-based levy through its Business Improvement District (BID).
• Bournemouth, Christchurch, and Poole: Began applying a £2 per room, per night tax in July 2024, focused on preserving communities and funding local events.

While the UK does not have a national tourism tax, these city-led charges are becoming more common and may expand further.

Why These Taxes Matter

Tourist taxes are no longer seen as barriers—they are tools. Cities and countries are using them to balance economic gains with sustainable growth, especially as tourism rebounds post-pandemic. For travelers, it means more transparent contributions toward the places they enjoy, and for destinations, it offers a critical funding source for services, environmental care, and future planning.

Countries like the US, Mexico, Italy, Spain, Japan, Portugal, and the UK are using tourist taxes to fund infrastructure, manage overcrowding, and invest in sustainable tourism—ensuring their travel sectors grow without overwhelming local communities.

Before you book, check the latest tax rules in your destination. A few euros or pounds per night may not seem like much, but collectively, they’re shaping the future of global tourism.