TTW
TTW

Tourist tax impacts on your travel budget

Friday, January 5, 2024

Favorite

Cruise Port Amsterdam

In the ever-evolving landscape of global tourism in post COVID-19, the new year 2024 is poised to usher in significant changes as numerous countries implement or increase tourist taxes. These measures aim to address the challenges posed by over-tourism, support local travel and tourism industry economies, and contribute to sustainability initiatives for the destinations. Travellers planning trips to popular destinations need to be aware of these developments, as these tourism taxes can impact their travel budgets and overall travel experience in the holiday season. The tourist tax creates a huge impact on your travel budget.

The Growing Trend of Tourism Taxes

A 2020 report by Group NAO and GDS-Movement highlighted the increasing trend of countries, especially in the US and Europe, imposing tourism taxes. This tourism taxation trend is expected to continue in 2024 as nations seek additional funding to combat the negative consequences of over-tourism and work towards achieving their environmental goals.

Amsterdam

Amsterdam, Netherlands: Europe’s Highest Tourism Tax

Amsterdam, already known for imposing Europe’s highest tourism tax, plans to raise the stakes in 2024. The city aims to increase the hotel room tax from seven to 12.5 percent, while cruise-ship passengers will see an increase from €8 to €11 per person per day. The additional revenue generated will be allocated to address over-tourism consequences, maintain cleanliness, and resolve neighborhood issues.

Orange County discuss about how to spend tourism tax
Orange County leaders are deliberating on how to allocate millions in tourism tax, with five major proposals, including enhancements for the Orange County Convention Center, Florida Citrus Sports, UCF Sports, Amway Center, and the Dr. Phillips Center for the Performing Arts. Mark Tester, the Executive Director of the Orange County Convention Center, expressed that while proceedings at the facility are satisfactory, additional space is needed to attract more events. He emphasised that tourism funds would significantly enhance the convention center’s capabilities.

BaliSpirit-Festival-–-Ubud-Bali

Bali to launch a new tourism tax in 2024

Governor Wayan Koster of Bali has confirmed the introduction of a tourism tax in this year, addressing concerns by submitting the draft provincial rule on fees for overseas travelers to the Bali DPRD. The proposed levy aims to support the preservation of Balinese values and natural landscapes, acknowledging Bali’s prominence as a key national and global tourism destination.

Barcelona, Spain: Focusing on Quality Tourism

In April 2024, Barcelona, Spain intends to raise its municipal tourism tax, targeting high-value tourism over mass tourism. The city targets to create sustainability development for the destination. The current €2.75 per night tax will increase to €3.25.

Bahamas

Bahamas sets sail with cruise tourism tax increase
The Bahamas government plans a significant boost to cruise tourism revenue through the Passenger Tax Amendment Bill 2023, proposing substantial departure tax increases. Departure taxes from main ports like Nassau and Freeport will rise by 27%, reaching $23, while those leaving private islands face a steeper 38% increase to $25. Additional taxes of $5 for tourism environment and $2 for tourism enhancement will be imposed. The changes aim to triple annual cruise tourism revenues from $50 million to $145 million, fostering a more sustainable income for the country. The taxes will take effect in July 2023.

Duluth council thinks on tourism taxation
Duluth city officials are facing a challenge in allocating tourism tax assistance as requests surpass the budgeted amount for 2023 by over $2 million. Noah Schuchman, the city’s chief administrative officer, emphasized the need to prioritize impactful initiatives and maximize the use of available funds. The Duluth City Council is set to review Mayor Emily Larson’s proposed distribution plan of $13.3 million in tourism tax proceeds, following an assessment process implemented four years ago. However, Councilor Janet Kennedy intends to table the resolution for further consideration.

Valencia, Spain introducing taxation to manage visitors

Valencia will introduce a tourist tax ranging from 50 cents to €2 per night, applicable across all regions. These measures reflect a shift towards attracting quality tourism and managing visitor numbers more sustainably.

akureyri-iceland

Iceland: A Sustainable Approach on Destination Development

Iceland is set to introduce a tourist tax in 2024, with the exact amount yet to be determined. Iceland Prime Minister Katrín Jakobsdóttir emphasises that the tourism fee will be reasonable and contribute to sustainability programs, aligning with Iceland’s goal to become carbon-neutral by 2040.

Olhão, Portugal: Combating Negative Impacts

The largest fishing port in Portugal’s Algarve region, Olhão, implemented a tourist tax in June 2023. The visitors now pay €2 per night during the high season and €1 during the rest of the year. Half of the revenue generated is allocated to combat the negative impact of tourism on the region.

Venice, Italy: Managing Mass Tourism

Venice, facing challenges from mass tourism, plans to implement a €5 fee in 2024 for tourists staying up to 30 non-consecutive days. This fee, applicable to visitors over 14 years old, aims to manage visitor numbers and will be implemented through a digital portal with a downloadable QR code.

Wales to impose tourism tax on visitors
The Welsh Government has confirmed plans to launch a consultation on a tourism tax in 2022. The proposed tax would be applicable to visitors staying overnight in a council area, with individual councils determining the fee. The government argues that the tax would generate funds for local councils to manage services and infrastructure in tourist hotspots. Plaid Cymru’s Cefin Campbell MS sees the tax as empowering local communities and promoting a sustainable approach to tourism, drawing inspiration from similar levies in Europe and beyond.

Copenhagen Denmark

Denmark: Passenger Tax for Flights

Denmark is set to introduce a “passenger tax” for flights in 2025. The tax will vary based on flight distance, charging around €8.4 for flights within Europe, €32 for medium-distance flights, and €51 for long-distance flights by 2030. The revenue will support the use of 100 percent sustainable fuels on domestic flights.

European Union: Strengthening Border Security

Starting in 2025, non-EU residents entering Europe without special visa requirements will need to register through the European Travel Information and Authorization System (ETIAS), costing about €7 per person. This electronic visa waiver aims to strengthen border security and protect EU citizens.

Austria

Across Europe, countries implement tourist taxes differently, considering factors such as destination popularity, hotel ratings, nights spent, and the season. From Austria to Switzerland, each nation has a unique approach, reflecting its commitment to managing tourism sustainably.

As tourists embark on journeys in 2024, understanding and preparing for these evolving tourism tax regulations is essential. These measures, while aiming to address over-tourism and promote sustainability, underscore the dynamic nature of the travel landscape. Travellers are encouraged to stay informed about destination-specific tax updates and plan accordingly to ensure a smooth and enjoyable travel experience while contributing to the responsible tourism movement.

Share On:

Subscribe to our Newsletters

« Back to Page

Related Posts

Select Your Language

PARTNERS

AHIF
at-TTW

Subscribe to our Newsletters

I want to receive travel news and trade event update from Travel And Tour World. I have read Travel And Tour World'sPrivacy Notice.