March 6, 2024
By Larry Bleiberg, Features Correspondent
John Seaton Callahan/Getty Images
(Credit: John Seaton Callaghan/Getty Images)
Tourism taxes are now as much a part of travel as selfies and souvenir shops. There’s more on the way.
Hamer Tzi remembers the first time she found out she was being taxed as a tourist. She was visiting Barcelona with her husband when they learned that hotel and cruise guests would have to pay an extra fee. Introduced in 2012, the fee will rise to 3.25 euros a day from April 1, 2024, meaning a couple staying for a week would pay more than 45 euros.
“I was disappointed to see it,” said the Hong Kong-based blogger, who documents her travels with her husband. “I have always believed that tourists contribute greatly to the local economy and should be welcomed with open arms.” She thought the tax “seemed unfair and somewhat unethical.”
But whether travelers realize it or not, tourist taxes are now as much a part of travel as selfies and souvenir shops. And there’s more on the way.
This isn’t new, however. Countries have for years taxed travelers by requiring them to buy a tourist visa. Airports add fees to airfare. Local governments regularly levy fees for hotels and car rentals. The world is dotted with popular destinations that charge tourism fees, from Bhutan to Belize, Mallorca to Malaysia.
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Tourists visiting Seville may soon have to pay to explore the famous Plaza de España (Credit: Gonzalo Azumendi/Getty Images)
However, the recent surge in tourist destinations imposing or increasing tourism taxes reflects the increasing pressures of climate change and overtourism, and this trend is likely to continue. Seem.
Money collected from these taxes is often added to the general budget, but many organizations also use a portion to promote tourism. In some cases, tax dollars can be used to support sustainability efforts, such as wildlife conservation, heritage reconstruction, and even supporting musicians.
Scholars argue that the fee makes sense because tourists can visit a place without paying for development or maintenance, while residents face the burden of waste and congestion. “The tourism industry is ‘freeloading’ in the public sphere,” says Harold Goodwin, a senior research fellow at Manchester Metropolitan University’s Place Management Institute. “Why don’t tourists and day trippers donate?”
The tax increase is also intended to limit the number of visitors.
“Previously, there was a feeling that the more tourists, the better, and that each additional tourist yielded further profits.These days, tourist destinations realize that they can only accommodate a finite number of tourists. “We’re starting to realize that,” said partner Justin Francis. He has partnered with Goodwin to launch travel agency Responsible Travel, whose trips are designed to reduce the negative impacts of tourism.
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Experts say if travelers have to pay special taxes, it’s important to understand how that money will be used. A 2019 study in Italy’s Puglia region showed that visitors who were told they would be charged a fee to protect the city they visited were more accepting of the tax and were willing to pay nearly five times more. It was done.
Some regions are taking this message to heart and are aiming for transparency in how the funds raised are used.
Iceland uses a lodging tax of up to 7 euros per night to support tourism and sustainability. The Icelandic Tourism Board’s website details how the funds will be used to support hundreds of projects, including improving infrastructure for whale watching, maintaining hiking trails near natural hot springs, and adding more toilets to glacier research areas. Project funding is indicated.
In Austin, Texas, visitors can literally hear how their money is spent. A portion of the city’s lodging tax revenue goes to the Live Music Fund, which provides grants to musicians, concerts, and festivals.
And after Spain’s Balearic Islands introduced a toll in 2016, it highlighted the resulting projects, including the preservation of sand dunes, a new pedestrian walkway in Ibiza and the restoration of Alcudia’s medieval walls. did.
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Iceland uses tourism taxes to fund infrastructure projects such as maintaining hiking trails near hot springs (Credit: Matthew Micah Wright/Getty Images)
Some companies have gone so far as to impose their own voluntary tax, claiming it’s good for the planet. Maple Leaf Adventures, an expedition cruise line that runs along the coast of British Columbia, Canada, has joined other operators in levying a sustainability fee of $200 Canadian per passenger. “It’s a ‘representative amount,’ but it doesn’t come anywhere close to covering the actual costs of being a responsible operator,” said Maureen Gordon, co-owner of the cruise line, noting that the money will be donated to conservation groups, sustainable operations, and Indigenous communities.
Still, critics question whether it’s elitist to impose a tax that discourages some travelers from traveling. “We believe there are fairer and more effective ways to address issues like overtourism without putting an undue burden on travelers,” Tsui said. “Ultimately, we want to strike a balance where the tourism tax is used wisely to support sustainable tourism practices while welcoming visitors.”
No matter how you look at it, tolls are an important source of revenue for governments and are unlikely to go away. For example, Barcelona estimates that it will collect up to 100 million euros in 2024.
These taxes are “very effective at raising money,” Francis said.
