Mexico Joins Norway, Japan, Spain, Italy as Baja California and Kyoto Imposing New Tourism Tax from Next Year to Power Infrastructure, But Travel Industry May Hammer Economy

Published on December 3, 2025

By: Tuhin Sarkar

Mexico joins Norway, Japan, Spain, and Italy as Baja California imposes a new tourism tax in from next year. This new tax from 2026, part of a growing global trend, aims to power tourism infrastructure development and preserve cultural and environmental assets to these regions like Barcelona, Kyoto, Baja California.

Similarly, Japan’s Kyoto has revised its accommodation tax to fund the city’s tourism management. As these regions enforce new taxes, including Baja California’s mandatory fee for international visitors, the goal is clear: to channel funds into crucial infrastructure projects. However, the impact of these tourism taxes on the travel industry cannot be ignored.

While taxes like Baja California’s aim to bolster sustainability and development, the added costs may negatively affect the tourism economy. Travel and tourism stakeholders must watch closely as these measures unfold, as the long-term effects on the global tourism industry remain to be seen.

Baja California Sur, Mexico “Embrace It” Tourist Fee to Continue in 2026

Baja California Sur, Mexico, has confirmed that the mandatory “Embrace It” tourist fee will remain in effect throughout 2026. The fee, backed by both government agencies and the private sector, ensures that all international visitors fulfill their legal obligation to contribute to the region’s sustainable development.

Applicable to travelers over the age of 12, the fee is charged for entry through land border crossings or at airports in Los Cabos, Cabo San Lucas, La Paz, and Loreto. Payment is mandatory and can be completed either online before traveling or upon arrival at the destination. Once payment is made, visitors receive an electronic certificate with a unique QR code, which may be randomly requested at airports or other points of entry for verification.

The funds generated by this fee are directed towards environmental protection initiatives, enhancing tourism infrastructure, and supporting social and cultural projects that help preserve the destination for future generations. This initiative operates under the “One Voice” program, which fosters collaboration between the state government, private sector, and tourism industry.

From January to August 2025, Baja California Sur welcomed over 3.85 million foreign tourists, marking a 0.93% increase compared to the same period in 2024, according to figures from the Pacific Airport Group administration. This growth underscores the region’s ongoing appeal and the increasing role of tourists in maintaining the sustainability of popular destinations.

The fee collection process is managed by Tourist Tax México, responsible for the digital payment system, ensuring the process is secure, simple, and accessible for travelers.

As global tourism continues to soar, destinations across the world are looking for new ways to manage the influx of visitors. One common method is the implementation or increase of tourist taxes, also known as visitor levies. These taxes, often collected from tourists staying overnight, aim to fund tourism infrastructure, preserve cultural heritage, and manage the environmental impacts of tourism. While some places already have established taxes, others are preparing for significant changes in 2026. In this article, we’ll explore the upcoming tourist tax changes and examine the destinations that are introducing or increasing these fees.

Norway Leads the Charge: Municipal Visitor Contribution Set for 2026

Norway’s government is leading the way with a new tourism tax, set to begin on July 1, 2026. Known as the Municipal Visitor Contribution, this tax will apply to areas with heavy tourist traffic and aims to help fund tourism-related infrastructure. The tax will be a 3% surcharge on the price of accommodation, excluding VAT, and will apply to a wide range of accommodation types including hotels, cabins, and campsites. Notably, youth hostels may be exempt from the levy. Only guests aged 12 and older will be required to pay the tax, with the funds being used for services such as improved sanitation, environmental protection, and the development of new tourism paths.

This move is part of a broader strategy to promote sustainable tourism in high-traffic areas, and other municipalities may follow suit. With the Norwegian government investing heavily in responsible tourism, this tax increase reflects a growing global trend of sustainable tourism practices.

Kyoto’s Revised Accommodation Tax: Steep Increases Coming in 2026

In Japan, the cultural heart of the country, Kyoto is preparing for a significant increase in its accommodation tax. Starting March 1, 2026, the city will raise its accommodation tax rates in a move aimed at improving the city’s infrastructure and tourism management. For visitors who stay in rooms priced below ¥20,000, the tax remains the same at ¥200 per person per night. However, for more expensive accommodations, the tax will increase dramatically. Rooms costing between ¥20,000 and ¥50,000 will now incur a ¥1,000 tax, while rooms between ¥50,000 and ¥100,000 will see a rise to ¥4,000 per night. For the priciest rooms costing over ¥100,000, the tax will jump to ¥20,000 per person per night.

While these increases will certainly affect tourists, they are designed to generate revenue for maintaining the city’s unique cultural atmosphere and ensuring that Kyoto can manage its large visitor numbers. However, this may put a strain on higher-end travelers as the city becomes more expensive. Still, with exemptions for children and students on school trips, the burden will not fall equally on all visitors.

Barcelona’s Municipal Surcharge: Tourism Management Gets a Boost

In 2026, Barcelona, one of Europe’s most visited cities, will raise its municipal surcharge as part of the regional tourist tax. The city’s 2026 budget reveals plans to increase the tax from €4 to €5 per person per night. This increase, if approved by the Catalan Parliament, is expected to generate an additional €10 million in revenue, which will be used for tourism management and infrastructure projects. The rise in tax is part of the city’s ongoing effort to cope with the overwhelming influx of tourists while ensuring that local residents and businesses are not overwhelmed.

This increase follows a global trend, as many popular tourist cities look for ways to balance the needs of residents and visitors. In Barcelona’s case, the funds raised from the surcharge will be directly invested in tourism management, keeping the city’s infrastructure running smoothly and ensuring that visitors continue to enjoy their experience.

Italy’s Olympic Regions: Tax Increase for 2026 Will Fund Cultural Projects

Italy is another country preparing for a tax hike, with new provisions targeting cities near the Milan–Cortina 2026 Olympic sites. Under Italy’s Decree-Law No. 156/2025, municipalities within 30 kilometers of the Olympic sites will be allowed to increase their tourist tax by up to €5 per person per night during 2026. The tax revenue will be split between supporting the country’s Olympic efforts and funding local cultural projects. This increase will be especially felt by visitors staying in the Milan-Cortina region during the Olympic games.

Italy’s approach is a creative blend of leveraging global events to fund local tourism needs, especially as the country gears up for a year of international attention. As tourism in Italy continues to thrive, these tax measures reflect a concerted effort to balance the needs of visitors, local governments, and the national Olympic commitment.

Sendai and Miyagi: New Accommodation Tax to Begin in 2026

In Japan’s Sendai City and Miyagi Prefecture, a new accommodation tax will be implemented on January 13, 2026. The tax will charge visitors ¥300 per person per night if the lodging fee exceeds ¥6,000, with the funds split between the city and the prefecture. While stays under ¥6,000 are exempt, this tax aims to address the tourism impacts in the region by funding tourism promotion and improving the environment around popular tourist spots. It’s part of Japan’s broader plan to balance tourism development with environmental sustainability, ensuring that the country’s natural beauty remains protected despite rising tourist numbers.

With the expected revenue, the city and prefecture will be able to invest in maintaining public spaces and ensuring that tourism does not negatively impact the local environment.

Scotland’s Visitor Levy: Edinburgh to Implement Tax in 2026

In 2026, Scotland’s capital city Edinburgh will introduce the country’s first-ever visitor levy, thanks to the Visitor Levy (Scotland) Act 2024. Edinburgh City Council has announced that from July 24, 2026, a 5% tax will be applied to the cost of overnight stays in hotels, hostels, short-term lets, campsites, and boat accommodation. This levy will affect all visitors, including those on business trips. The goal of the tax is to fund tourism-related infrastructure and services, helping to mitigate the impact of increasing visitor numbers in the city.

As with many other tourist destinations, Edinburgh’s decision reflects the growing trend of local authorities looking for ways to better manage tourism. The revenue generated will be crucial for ensuring that the city can continue to thrive as a cultural hub for both residents and visitors.

Berlin’s Overnight Tax: A New Rate to Support Infrastructure

Germany’s capital, Berlin, has implemented an increase in its overnight tax, known as the “city tax,” starting from 1 January 2025. The tax rate has been raised to 7.5% of the net accommodation cost, up from the previous 5%. This adjustment applies to all paid overnight stays, including both business and tourism-related accommodation. Accommodation providers must file tax returns and pay on a quarterly basis beginning in January 2026. The increased tax revenue will be used to support the city’s infrastructure and tourism services, ensuring that the city can accommodate both the growing number of visitors and the needs of its residents.

Vienna’s Local Tax: A Steady Contribution to City Services

Vienna, Austria, has long relied on its local tax (Ortstaxe), which applies to temporary accommodation stays. The current tax rate stands at 3.2% of the accommodation price, excluding VAT and breakfast costs. Vienna’s tax calculation also includes an 11% lump-sum deduction, which helps reduce the overall taxable amount. Revenue from this tax is used to fund essential city services and promote tourism. While no changes to the tax rate have been announced for 2026, it remains a vital part of Vienna’s strategy to finance its cultural and public infrastructure needs.

Bali’s New Foreign Tourist Levy: A Step Towards Sustainable Tourism

Bali has introduced a new levy for foreign tourists, under Regional Regulation No. 6/2023. The levy requires foreign visitors to pay 150,000 Rupiah (approximately US$10) upon entering Bali. This payment must be made electronically, either before or upon arrival, with proof of payment required for entry. The funds generated will be directed towards the protection of Bali’s culture and environment, helping preserve the island’s natural and cultural heritage. Bali’s levy came into effect in February 2024, and while the amount may be reviewed every three years, it represents a crucial step towards sustainable tourism.

New Zealand’s International Visitor Levy: Funding Conservation and Infrastructure

New Zealand has implemented the International Visitor Conservation and Tourism Levy (IVL), which was increased to NZD $100 on 1 October 2024. This levy is paid by most foreign visitors when applying for a visa or an electronic travel authority (NZeTA). The funds raised from the levy contribute to conservation projects and the development of tourism infrastructure across the country. Exemptions apply to Australian citizens, New Zealand residents, and travelers from certain Pacific Island countries. The IVL highlights New Zealand’s commitment to maintaining its pristine natural landscapes and ensuring that tourism supports long-term environmental sustainability.

Tourist Tax Trends: A Global Movement

As we look at these upcoming changes, there are several key trends that stand out in the way governments are using tourism taxes. First, we see a widespread shift toward percentage-based levies, which are scalable based on the cost of accommodation. This helps ensure that the taxes are fairer, as they account for inflation and the rising cost of high-end accommodations. Countries like Norway, Edinburgh, and Berlin are all using this model, which ties the levy directly to the cost of the stay.

Moreover, most of these taxes are earmarked for improving tourism infrastructure, preserving cultural heritage, and protecting the environment. Whether it’s the funds raised for the Milan-Cortina Olympics or the preservation of Kyoto’s cultural sites, the use of revenue is largely focused on mitigating the negative impacts of tourism while promoting sustainable growth.

Exemptions for children, low-cost accommodations, and school groups are also common features, ensuring that the tax burden doesn’t disproportionately affect certain groups of visitors. This is seen in cities like Kyoto, Sendai, and Norway, where the taxes are designed to be fair and equitable.

Navigating the Future of Tourism Taxes

From 2026 onwards, several global destinations will introduce or increase tourism taxes. Norway, Kyoto, Barcelona, and Italy are among the countries adopting new measures to ensure that tourism continues to thrive while funding essential services and preserving local culture. With the revenue generated from these taxes, these destinations can better manage the growing number of visitors and mitigate the negative effects of tourism.

As more destinations introduce or raise their tourism taxes, it’s clear that governments are taking proactive steps to manage tourism sustainably. Whether you’re visiting Japan, Spain, or Italy in 2026 or beyond, expect to see changes in the way tourism taxes are levied — but remember, these taxes will help fund the infrastructure and services that make your trip enjoyable and sustainable for future generations.