Money Wellness
Illustration of Venice
category iconcost of living
calendar icon05 Apr 2024

Is your holiday going to be subject to tourist tax?

If you’re jetsetting this Easter or in the summer, it might be worth knowing that if you’re going to a popular destination, you might need to pay tourist tax.Bottom of Form

 Travel insurance provider Staysure has warned a tourist tax might become a regular fee for holidaymakers.

 If you've travelled abroad, you've likely paid a tourist tax before. You may never even have noticed it - as it’s sometimes worked into airline tickets or the taxes you pay at your hotel.Some cities have always had tourist taxes such as Vienna and Salzburg in Austria.

 The chief commercial officer for Staysure, Simon McCulloch, explained the growing increase: "Since the pandemic, more countries have introduced some form of tourist tax, to boost local economies through charging travellers a daily fee. The objective is to temper over-tourism, whilst generating income for preservation, building infrastructure and to help the many local businesses and livelihoods that suffered during Covid-19."

So far this year, Barcelona has made its tourist tax higher, rising to €3.25 at the start of April, and Venice has started asking daytrippers for €5 as part of a trial.

Portimão in Portugal has followed in the footsteps of neighbouring towns by introducing a tourist tax last month, setting it at €2 per night from April to October and €1 per night from November to March.

In February, Bali has introduced a tourist tax equating to €8.80 euros, in order to curb the problem of overtourism and preserve the environment, nature and culture as well as improving quality of Bali.

A study done by the company discovered that if a tourist tax was introduced, 51% of holidaymakers in the UK would be less keen on visiting a destination.

Mr McCulloch said: "What this data highlights are the unintended consequences of introducing a tourist tax. In a cost-of-living crisis every penny does count and when saving up for that well-deserved holiday, consumers may not expect to be met with additional charges.

"It's possible we'll see a change in consumer behaviour when the increasing cost of travel meets with an additional local tax burden. The large number of tourists that once flocked to these destinations simply may not feel welcome anymore or may feel that visiting a destination that is over-visited may not be the best thing for them from a sustainability, or experience perspective. While tourist taxes might feel like the only option, other solutions may need to be considered to create the right balance between the economic benefits of tourism and the cultural and environmental challenges that can be problematic for the local communities."

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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