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Tourist Tax: What is it? Which Countries Have it?

Posted on Friday, 28 October 2022

In the heady days before Covid-19, global tourism was booming. And while it generated a valuable income for locals and boosted the coffers of national economies, there were downsides: land erosion and rubbish left on beauty spots, damage to marine areas, overcrowding, and locals unable to easily access resources - to name a few.

In order to fund tourist infrastructure, address issues caused by over-tourism, and to dissuade visitors from some busy destinations, tourism taxes were introduced in many countries.

In the post pandemic world, tourism is back - and, it is hoped, these taxes will go on making tourism viable.

How much is tourism tax?

Tourist taxes vary hugely between locations. It might equate to a couple of pounds a night, or it may - as with Bhutan (see below) - result in a couple of hundred dollars extra to pay each night.

How does tourist tax work?

Tourism taxes are levied in a variety of ways.

Commonly, the tourist tax is added to hotel stays per night, or to flights entering or leaving a country.

The tax can vary between cities and regions, too.

Which countries levy a tourist tax?

Dozens of countries charge some kind of tourist tax.

Here we list some of the destinations often visited by Britons...

Tourism tax is applicable in Majorca

Mallorca tourist tax

The Balearic Government introduced a tourist tax to fund environmental conservation efforts and improve sustainability.

It is levied on all types of holiday accommodation, on a per-night basis.

The Mallorca tourist tax charges are €4 for high end hotels; €3 for mid-range accommodation; €2 for cruise ship passengers and budget hotels; and €1 for those on campsites and in hostels.

Under-16s are exempt.

Ibiza tourist tax

This popular Balearic island levies tourist taxes in the same way as Mallorca (see above).

Canary Islands tourist tax

There is currently no tourist tax on the Canary Islands, but authorities are considering it.

Tourism tax being considered for the Algarve

Algarve tourist tax

The Algarve - Portugals' most popular tourist region - is set to introduce a tourist tax in 2023 (delayed due to Covid).

Local government group the Intermunicipal Community of the Algarve (AMAL) wants a €2 per person per night charge, up to a maximum of €14 (or seven nights), which is the same as a tax charged on tourists visiting capital Lisbon. Children under 12 would be exempt.

At present, the only regions of the Algarve to tax tourists are Faro and Vila Real de Santo António, but both have a cheaper charge.

Lisbon and Porto tourist tax

Visitors aged 13+ must pay €2 per person per night up to a maximum of €14 for seven nights.

This would equate to €28 extra for a couple staying in either Lisbon or Porto.

Initially introduced as a temporary measure, it became permanent in 2019 - since it raised so much money for the city.

Orlando, Florida tourist tax

Famed for its theme parks, Orlando levies a 6% Tourist Development Tax for stays of six months or less.

The tourism tax in Orlando is collected by the accommodation operator.

Tourism tax is payable in Greece

Greece/Crete tourist tax

You'll pay up to €4 per night in Greece depending on the number of stars your hotel has.

It was introduced in 2018 to help deal with Greece's debt problem.

The Greek tourist tax is levied on a per-room basis, so you could save if you share.

Paris tourist tax

Paris City Council introduced a tourist tax way back in 1994.

It is based on your accommodation type, and ranges from €0.25 to €5 per night.

Under 13s are exempt.

The Paris tourist tax might be included in the room price or paid separately when you check in.

Venice tourist tax

Venezia is one of the most beautiful cities on the planet - and it has suffered from over tourism as a result.

To pay for urban upkeep and to reduce visitor numbers, Venice introduced a tourist tax in 2011.

The tourism tax for a stay in Venice ranges from €1 to €5 per person per night, depending on the type of accommodation, location and season.

A €10 ‘day tripper’ tax will also be introduced in summer 2023, mainly impacting cruise ship passengers.

Tourist taxes apply in Rome, Italy

Rome tourist tax

The Italian capital also charges a tourist tax, ranging from €2-7 depending on accommodation type.

The Rome tourist tax must be paid for the first 10 days of your stay (but only five days for a campsite stay).

Amsterdam tourist tax

The Dutch capital was groaning under the weight of so many tourists before the pandemic, prompting them to introduce the highest tourist tax ('toeristenbelasting') in Europe: 7% of the room cost plus another €3.

Staying at an AirBnB? You'll pay 10%.

Cruise ship day trippers pay €8 per head.

Switzerland tourist tax

Switzerland's tourist tax varies depending on the city you're in. Zurich levies a flat fee of CHF 2.50 wherever you stay, while Lucerne's tax varies (CHF 0.5-6.50) based on the accommodation class.

On the plus side, tourists get free public transport in most cities.

Prague tourist tax

Prague tourist tax

Visitors to the Czech capital must pay CZK 50 (£1.76) per person per night for the first 60 days.

The funds raised will go toward developing tourism in the city (it was previously funded by local taxes). 

Berlin tourist tax

Since 2014 visitors to the German capital have had to pay 5% of the cost of their stay - including breakfast. It's automatically applied to the first 21 days.

Visiting for education or business? You can gain exemption by showing suitable proof.

Only a few German cities currently charge tourist tax.

Poland tourist tax

The Polish tourist tax or - 'spa tax' - varies depending on the location and accommodation type; it is invariably applied to health spas.

It cannot exceed PLN 3.08 per day in 'spa protection areas' or 4.24 per day in resorts.

Mexican tourist tax

Mexico tourist tax

Since April 2021 the Mexican state of Quintana Roo (including Cancun) has levied the 'Visitax' on visitors aged over four.

The $12 fee must be paid before or after arrival. It is checked upon departure.

Technically, it is not a ‘Mexico tourist tax’ since it does not cover the whole country.

Budapest, Hungary tourist tax

While there is no tourist tax for Hungary in general, visitors to the capital Budapest have an extra 4% added to their hotel room rate.

Bhutan tourist tax

Famed for its incredibly natural environment - including the famous Tiger’s Lair monastery, Bhutan has implemented one of the heaviest tourist taxes in the world.

Before the pandemic visitors were already paying $65 per day (as part of a $250 per day fee that included hotels, food and transport) to be in the tiny kingdom. Now that figure has risen to $200.

Visitors from Southeast Asia and other nearby countries like India do not pay this fee - instead they pay a lower daily tax of $16.

The introduction of the $250 tax is to encourage "high value, low volume" tourists, and was prompted by the fact 2019 tourist numbers equalled almost half of the nation's population of 770,000.

Tourist tax applies in Thailand

Thailand tourist tax

Thailand will introduce a tourist tax of 300 baht (6.85GBP) from next year. Given the nation received 38 million visitors in 2018, this is likely to raise a huge amount.

Like Bhutan, the Thai authorities are keen to move away from low-end 'cheap' tourism, in favour of high-end visitors lower in number - and while paying an extra 300 baht to enter the kingdom won't break the bank, it shows the direction things are moving in.

You won't have to worry about paying the Thai tourist tax separately however, since it will be added automatically to your airline ticket cost.

Bali, Indonesia tourist tax

Bali introduced a tourist tax in 2019 - set at €9 or around Rp146,517 for every foreigner arriving on the island.

The funds will help preserve Balinese culture and the environment.

At present, no other part of Indonesia charges this fee.

Malaysia tourist tax

Malaysian authorities charge a tourism tax of a flat rate of up to RM 10 (3GBP) per night, depending on the class of accommodation.

Tourist tax is chargeable in New Zealand

New Zealand tourist tax

Foreign arrivals (excluding Australians) are required to pay the International Visitor Conservation and Tourism Levy, or IVL - at NZD$35.

Australia tourist tax

There is no tourist tax in Australia - at present.

Which countries are tax-free?

There are a number of countries with no tax for tourists.

VAT may be charged on goods and services, but in some cases this can be claimed back upon departure.

Tax-free countries in Europe

Denmark, Norway, Sweden and Finland are among European countries that do not charge a tourist tax. However, some countries charge VAT on goods and services related to tourism - such as hotel rates, amusement parks, sporting events and international travel.

High value, low volume?

In recent years some countries have tried to move away from mass tourism - and the pressures it can bring. Prime examples include Thailand and, particularly, Bhutan - both of which are listed above.

Tourist taxes are viewed as a key way to limit passenger arrivals - while ‘high end’ visitors ‘should’ make up any shortfall. However, some argue that only inviting high-end visitors would destroy many businesses that thrive on package tourists and backpackers, who consume items like street food and keep the nightlife going.

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