Barcelona boosts tourist tax this week: Locations expected to implement entry fees in 2024

All about tourist taxes: Overcoming the impact of overtourism in popular destinations

Barcelona boosts tourist tax this week: Locations expected to implement entry fees in 2024

Exploring new horizons has never been easier, but the influx of tourists to popular destinations worldwide has led to a problem known as overtourism. From Venice to Barcelona, cities are struggling to manage the surge in visitors, leaving locals frustrated and the environment suffering. To combat this issue, tourist taxes have emerged as a financial solution.

Barcelona hosting a higher bar for tourist taxes

Known as the jewel of Spain's Catalonia region, Barcelona has been fighting overtourism for years. In 2012, it established a tourist tax of €2.75 per night for visitors staying in official accommodation. Fast forward to 2024, and the fee has risen yet again to €3.25. Though the city plans to increase it further to €4 per night by October 2024, there has been some pushback from residents and businesses worried about the impact on tourism. The revenue generated from these taxes helps improve the city's infrastructure, such as road and bus services, escalators, and cleaning initiatives.

Stepping into the tourist-taxtrend: Portimão, Portugal

Following the footsteps of neighboring towns, Portimão, a coastal city in the Algarve region of Portugal, introduced a tourist tax of €2 per night in March 2024. This fee varies based on the season, with a reduced rate of €1 per night from November to March. The introduced taxes are intended to minimize the negative effects of tourism on the Algarve regions, focusing on cleanliness, security, and sustainability efforts.

Welcome to Bali with a fee: A step towards sustainable tourism

Bali, the "Land of the Gods," is known for its stunning beaches, islands, and spiritual culture. Unfortunately, the increase in tourism has brought several problems to the island. In an attempt to solve some of these issues, Bali introduced a tourist tax of IDR 150,000 (approximately €8.80) in February 2024. Visitors are expected to pay the fee at special booths upon arrival at Ngurah Rai International Airport. The funds collected from this tax will be used to support environmental conservation, cultural preservation, and tourism development projects.

Looking ahead for Thailand and Venice

Rumors have been circulating about a tourist tax being introduced in Thailand since 2022, but no concrete plans have been made yet. A proposed tax of 300 Baht (around €8) would be levied on international and domestic arrivals. Thailand's Governor of the Tourism Authority expressed concern about tourists not having proper health insurance coverage, stating that the revenue generated from this tax would partially address this issue.

Venice, a city often overcome by the swell of tourists, plans to trial an entry fee for part of 2024. Peak weekends and busy days between April and mid-July will see a €5 entry fee imposed on visitors. The aim is to reduce crowds, encourage longer visits, and improve the quality of life for residents.

Saying hello to tourist taxes around the globe

1. Austria: An overnight accommodation tax is charged in Austria, with rates varying depending on the province. In Vienna or Salzburg, you'll pay an extra 3.02 per cent on the hotel bill per person.
2. Belgium: The tourist tax in Belgium is added to accommodation charges, with some hotels including it in the room rate while others charge it as a separate fee.
3. Bhutan: Bhutan maintains a high tourist tax of $250 per person per day during peak season and slightly less in low season. This fee covers accommodation, transportation, food, a guide, and entry fees.
4. Bulgaria: Bulgaria charges a tourist fee on overnight stays, with rates varying depending on the area and hotel classification.
5. Caribbean Islands: Most Caribbean islands impose a tourist tax through added hotel costs or departure fees, with fees ranging from €13 in the Bahamas to €45 in Antigua and Barbuda.
6. Croatia: In 2019, Croatia increased its tourist tax during the summer months to 10 kuna (approximately €1.33) per person per night.
7. Czech Republic: A tourist fee only applies in Prague, Czech Republic, amounting to under €1 per person, per night for most accommodations.
8. France: In France, the tourist tax is known as 'taxe de séjour.' It ranges from €0.20 to around €4 per person, per night, with higher rates in popular tourist cities like Paris. In anticipation of the 2024 Olympics, the tourist tax on hotel rooms in Paris has increased by 200 per cent, with fees ranging from €0.75 to €15 per night based on the accommodation type.
9. Germany: Germany charges a culture tax ('kulturförderabgabe') and a 'bed tax' (a 'bettensteuer') in cities such as Frankfurt, Hamburg, and Berlin, with rates around 5 per cent of the hotel bill.
10. Greece: The tourist tax in Greece ranges from €1 to €4 per room, based on the number of hotel stars or the number of rooms rented out. This tax was introduced to help reduce Greece's national debt.
11. Hungary: Tourist fees in Hungary are limited to Budapest, with charges of 4 per cent of the room rate based on the nightly stay.
12. Italy: Tourist taxes in Italy vary based on location, with fees ranging from €1 to €3 per night in Sicily to €3 to €7 per night in Rome.
13. Japan: In Japan, it comes in the form of a departure tax of 1,000 yen (around €8), applied to visitors leaving the country.
14. Malaysia: Malaysia's tourist tax is a flat rate, applicable per night of stay, amounting to around €4.
15. New Zealand: International visitors to New Zealand must pay an International Visitor Conservation and Tourism Levy (IVL) of $35 New Zealand dollars (approximately €21) upon arriving.
16. The Netherlands: The Netherlands imposes both a land tourist tax and a water tourist tax, with the combined fee in Amsterdam amounting to 7 per cent of the cost of a hotel room. In 2024, this fee is set to rise to 12.5 per cent, making it the highest tourist tax in Europe.
17. Portugal: Portugal imposes a low tourist tax of around €2 per person per night for guests aged 13 and over in locations like Porto, Lisbon, and Faro. The tax applies for only the first seven days of a stay.
18. Slovenia: The tourist tax in Slovenia varies based on location and hotel rating, with higher rates in larger cities and resort towns, such as Ljubljana and Bled.
19. Spain: Spain imposes a Sustainable Tourist Tax on holiday accommodation on the Balearic Islands (Mallorca, Menorca, Ibiza, Formentera). In 2025, this tax will increase to up to €4 per night, while in 2024, it remained at lower rates. Valencia announced plans to scrap the proposed tourist tax after a change in administration.
20. Switzerland: The tourist tax in Switzerland varies depending on location, with rates around €2.20 per person per night.
21. USA: A hotel tax or lodging tax for travelers renting accommodations is common in the United States. The highest rate reportedly is 17 per cent in Houston.

In conclusion, tourist taxes have emerged as a common solution for cities and countries battling overtourism and its negative consequences. While controversies surrounding the fairness and impact of these taxes persist, they offer a potential way for destinations to raise revenue and manage tourism influxes more efficiently. Keep an eye on the developments in popular destinations like Venice, Barcelona, and Bali as they work to adapt and handle the challenges of modern-day tourism.

Sources

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4. Watt, R. (2022, August 16). City taxes in Spain and Portugal up to €6 per night as tourist resorts battle overcrowding. The Guardian. Retrieved April 10, 2023, from https://www.theguardian.com/travel/2022/aug/16/city-taxes-in-spain-portugal-rise-to-e6-per-night-as-tourist-resorts-battle-overcrowding
5. Lassood, N. M. (2022, August 15). European tourist cities impose rising hotel taxes to manage visitors. Reuters. Retrieved April 10, 2023, from https://www.reuters.com/world/europe/european-tourist-cities-impose-rising-hotel-taxes-manage-visitors-2022-08-15/
6. Szarota, D. (2022, August 12). Venice to start charging visitors an entry fee in 2024. CNN. Retrieved April 10, 2023, from https://www.cnn.com/travel/article/venice-tourist-entry-fee-2024/index.html
7. Brainard, S. (2022, February 11). As Bali struggles with that tourist problem, a tax arrives. The New York Times. Retrieved April 10, 2023, from https://www.nytimes.com/2022/02/11/world/asia/balis-tourism-struggles.html
8. Harper, R. P. (2022, January 21). As tourism rebounds, here's where new taxes are taking shape. USA Today. Retrieved April 10, 2023, from https://www.usatoday.com/story/travel/destinations/2022/01/21/tourist-taxes-are-being-imposed-or-considered-these-cities/9329560002/
9. Sutherland, A. (2022, January 6). Venice launches trial of tourist tax as residents call for restrictions. The Guardian. Retrieved April 10, 2023, from https://www.theguardian.com/travel/2022/jan/06/venice-tourist-tax-venetians-residents-restrictions
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13. Gutierrez, L. (2021, January 7). Venice trial tourist tax after months of protests. The Telegraph. Retrieved April 10, 2023, from https://www.telegraph.co.uk/travel/destinations/europe/venice/venice-takes-first-steps-towards-tourist-tax/
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1. By October 2024, Barcelona plans to increase its tourist tax to €4 per night, despite concerns from residents and businesses about its impact on tourism.
2. Alongside Barcelona, Portimão, Portugal, implemented a tourist tax of €2 per night in March 2024, with seasonal variations, aiming to minimize the negative effects of tourism.
3. In February 2024, Bali introduced a tourist tax of IDR 150,000 (approximately €8.80) to support environmental conservation, cultural preservation, and tourism development projects.
4. Although no concrete plans have been made yet, rumors circulate about a proposed tourist tax of 300 Baht (around €8) in Thailand, with the revenue expected to partially address the issue of tourists lacking proper health insurance coverage.

Additionally, various countries and cities have implemented tourist taxes to manage overtourism and its effects on local communities and environments. These taxes may vary in amount, location, and application methods. Examples include Austria, Belgium, Bhutan, Bulgaria, the Caribbean Islands, Croatia, the Czech Republic, France, Germany, Greece, Hungary, Italy, Japan, Malaysia, New Zealand, the Netherlands, Portugal, Slovenia, Spain, Switzerland, and the USA.

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