Hawaii is the latest destination to consider taxing visitors to combat the effects of climate change and overtourism. These are two issues of particular concern in the Aloha State in the wake of the devastating Lahaina fire.
The so-called climate tax is part of a bill first introduced in January and could be passed as early as this spring. If approved, visitors to Hawaii would be charged a flat $25 fee when checking into hotels and short-term rentals. The money will be used to support sustainability efforts in the state, including wildfire and flood prevention, coral reef restoration, emergency water supplies, green infrastructure and coastal restoration.
The concept of a tourism tax is not new. Hotel taxes have been the standard for many years in many European countries, including Greece, Spain and Germany, and hotel taxes are now standard in many destinations, including US states. The impact of the pandemic on the travel industry has been severe, with hotels, restaurants and hospitality venues closing, people who depended on tourism for their livelihoods suddenly facing huge losses, and the funds governments relied on for their development and maintenance drying up. As a result, many countries have decided to introduce tourism taxes to support local needs. Here we look at what exactly tourism taxes are and where they will be introduced in the run up to 2024.
Bhutan’s tourist tax (one of the highest on our list) was recently reduced from $200 to $100 per night.
bert hazewinkel
What is the tourist tax?
Tourism taxes were originally introduced by certain governments to curb overtourism and generate revenue from the large number of tourists entering a destination. Bhutan, for example, opened to foreign tourists in 1974 and has required tourists to pay large sums of money to enter the country. This country uses tax dollars (called the Daily Sustainable Development Fund) to preserve the country’s natural and untouched beauty. and to protect traditional Buddhist culture. Meanwhile, Barcelona uses the city’s tourism tax to fund local construction and development projects. Most tourist taxes are added to the room rate in the form of a percentage fee or a flat fee.
Which destinations will start charging tourism tax in 2024?
In January this year, Iceland reintroduced a tourist tax following pandemic closures. The Indonesian government began taxing travelers visiting Bali from February 14, 2024. In 2024, the UK will impose a new system called Electronic Travel Authorization (ETA). US, Europe, Australia and Canada will have to apply for authorization and pay an entry fee. Pro tip: Next year, the EU will start implementing a new tourist visa, which will require non-EU nationals traveling from outside the Schengen area to fill out a €7 (about $7.57) application form to enter the country.
Source link
