“Tourist Taxes” are rising around the world. I’m a cheapskate, but I support paying more.
Opinion Summary
- Many destinations across the world are introducing or increasing so-called “tourist taxes.” From Bali to Barcelona, you’ll need to pay more in taxes or fees to visit many destinations in 2024.
- Tourist taxes and charges are often introduced or increased to generate additional income for local or national governments and to try to counteract the negative impacts of tourism.
- I think tourist taxes are a good thing, and tourists should be willing to support the destinations they want to visit.
Destinations across the world are introducing and increasing charges and taxes for tourists.
You may see 2024 branded as the “year of the tourist tax”, as The Telegraph put it. Some online articles may even lead you to feel outrage at paying additional charges as a tourist.
But charging people for the privilege of visiting a destination is nothing new.
Tourist taxes come in different forms and names but have one thing in common, they add a small amount to the bills of visitors. And in my opinion, that’s a good thing.
Even as a cheapskate and experienced budget traveler, I support the idea of tourist taxes.
Which destinations will be more expensive to visit in 2024?
Many destinations around the world have been implementing tourist taxes for years.
Let’s look at some of the newer additions to the list of destinations that charge tourist taxes:
- The stunning island of Bali, Indonesia has introduced a new tourist tax. From February 14, 2024, all visitors entering Bali will need to pay IDR 150,000 (approx. $10)
- Fancy visiting the iconic city of Barcelona? From April 1, 2024, visitors staying in Barcelona will be subject to a €3.25 surcharge per night.
- The popular city of Amsterdam in the Netherlands has increased its tourist tax. From 2024, visitors will pay an additional 12.5% of the overnight rate excluding VAT.
- Sunny Greece has introduced a climate resilience levy. Visitors will need to pay a fee based on the official ratings of their accommodation and the season.
- Are you dreaming of visiting Iceland? On 1 January 2024, Iceland re-introduced an accommodation tax that visitors will pay depending on their type of accommodation.
Why are destinations introducing or increasing tourist taxes?
Simply put, tourist taxes are a way to generate additional income to deal with tourism’s impacts. Rather than trying to put tourists off, tourist taxes often aim to control and manage tourism sustainably.
Tourist taxes are often used by governments to keep places clean and safe, improve infrastructure and public services, build climate resilience, and reinvest in tourism developments.
Let’s take Iceland as an example.
The total number of foreign overnight visitors to Iceland was just over 1.7 million in 2022. That’s a 146% increase from 2021 and a substantial figure for a country with a population of just 372,520.
That’s a lot of people hiking on paths, dropping litter, and using public services. That’s also a lot of responsibility and pressure on a country to ensure that each visitor has a fun, safe, and enjoyable trip.
Iceland is famed for its beautiful scenery, but tourism puts a strain on natural resources and the environment. Iceland aims to use its tourist tax to fund sustainability programmes and initiatives to counteract this impact.
Here are some other ways that tourist tax is used:
- In 2023, over 5 million euros from a tourist tax in Barcelona was reinvested in tourist development projects. This included projects to increase provisions for tourists with visual impairments, preserve historic buildings, support cultural events, and build toilets on the beach.
- The Bali administration wants to use the income from the tourist tax to preserve heritage, protect Balinese culture, protect the environment, build better quality infrastructure, and support tourism services.
- Greece has recently suffered from several natural hazards, including floods and wildfires. Greek authorities say that the climate resilience tax paid by tourists will help fund reconstruction efforts following natural disasters.
Many other destinations are considering introducing tourist taxes too, including my home country Wales. The Welsh Government says the generated revenue could be reinvested in public services and infrastructure that tourists use, such as roads, and in local communities [Source]. I think this is a good idea.
Why I support tourist taxes
I took the above photos in Barcelona in popular tourist spots. The slogans capture frustration among some locals at the number of tourists in their cities.
I was uncomfortable seeing the slogans as a tourist, but I don’t blame locals in Barcelona who feel this way.
In 2022, 9.7 million people visited Barcelona [Source]. The reality is that locals in Barcelona and other popular tourist destinations often face negative impacts of tourism.
Locals in popular holiday destinations from Vienna to Valencia struggle to find affordable housing as property prices are inflated. Bali has a growing problem with litter. Tourists contribute to the degradation of hiking trails in Iceland.
I don’t think it’s fair that locals should bear the brunt of the negative impacts of tourism. Local people in holiday destinations should be able to use and enjoy their surroundings and infrastructure.
In my opinion, it is not the responsibility of local people to pay so that tourists have a good experience.
There are limited ways destinations can gain control over tourism. I think that implementing additional charges for tourists is one way to manage tourism and balance tensions.
Of course, there are lots of positive impacts of tourism too such as income and jobs. But not all residents benefit. The Bali administration acknowledges this and aims to use the revenue from tourist taxes to increase income for locals who don’t yet benefit from tourism.
And if you think every penny you spend on your holiday already supports the destination and locals, you’re mistaken. On some trips, only a fraction of what tourists pay ends up in the pockets of local economies and people.
A study found that “of each USD 100 spent on a vacation tour by a tourist from a developed country, only around USD 5 actually stays in a developing destination’s economy” [Source]. That’s staggering.
In my opinion, paying tourist taxes is one way to directly contribute to the local economy, something that tourists often do less of than they realize.
Let’s be honest, most tourists want holiday destinations to be clean, safe, and with good infrastructure. Sunbathing among trash in Bali isn’t an Instagrammable dream. Sightseeing among the debris from floods isn’t the reason you’re flying to Greece. Hiking up an eroded, unsafe path in Iceland isn’t on the bucket list.
It costs money to keep destinations in good condition, and I think it’s right that tourists contribute to this.
Barcelona reinvested 5 million euros generated from tourist taxes into tourism redevelopment projects. Bali intends to use some of the generated revenue to give tourists a better experience. So that YOU have a good trip.
As tourists, it’s easy to take infrastructure and services for granted. We don’t always stop and appreciate it when the beach is clean and the mountain path we walk up is safe and in good condition. We sometimes feel entitled to a place because we’ve paid to visit it.
Let’s not forget that it’s a privilege to afford to go on holiday and visit incredible destinations. The additional financial contribution of a tourist tax or charge is often less than the price of a meal out. And certainly, a fraction of the overall cost of a trip.
In my opinion, paying tourist tax is an investment in the place I’m excited and grateful to visit.
Tips for your next trip
Whether you agree with my opinion about tourist taxes or not, you’ll have to accept they exist. Let’s wrap up this article with some practical tips for your next trip.
- Double-check if there is any additional charge for tourists. Make sure you know how and where to pay tourist-related charges. This will avoid being at risk of scams or paying incorrectly. For example, Bali has a dedicated website to explain the new tourist tax.
- Accept the tourist tax or charge with grace, if you need to pay one. Engage with the reasons why it was introduced and what local governments aim to do with the revenue.
- Always strive to be a responsible tourist, regardless of any tourist tax or charge. Pick up litter, stick to paths, buy things from local shops, and leave places as you’d like to find them.
- Consider exploring lesser-known destinations to get away from crowds and minimize overcrowding in popular destinations. Stuck for inspiration? Check out Travel Lemming’s 50 best places to visit in 2024 which is full of hidden gems and emerging destinations.
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We all want to have a good experience when we travel. And most of us like the idea of positively contributing to the destinations we visit and love. So, if that means paying a little extra for the privilege of visiting? That seems fair to me.
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Much as I appreciate Ruthie for her time dedicated to writing Bloggs, I totally disagree with her opinion that it is a good idea that Wales introduces a Tourism tax that she states is to be used for public infastructure and roads. the Welsh government has no control over how local authroities will spend the tax that they could collect if they decide to do so bsed on a County by County principle but Welsh government has stated that any revenue generated will be Ring Fenced to provide support to the Tourism Industry and not suplement local authority funding for existing items such as maintaining roads that is already funded through Business rates paid by the Tourism businesses in wales at a higher rate of taxation than the other examples that she states in her piece. She also ignores the fact that Tourism businesses in Wales already face a 20% VAT tax burden applied to all accommodation bookings unlike most locations that she referred to in her Blogg. Perhaps to be come a better journalist a more balanced reporting, including researching both sides of a topic, rather than just stating opinions and wrongly quoting would improve her ratings.
Hello,
Thank you for reading my article and taking the time to share your thoughts and comment. I appreciate hearing readers’ views and take on board different opinions and perspectives.
As I share in the article, I believe that tourist taxes are a positive way for tourists to contribute to the local economy and I think we should be willing to contribute to the infrastructure and services we use. I had read multiple scaremongering articles about tourist taxes and wanted to offer a more positive viewpoint. I think that scaremongering narratives about tourist taxes are more likely to put visitors off, rather than the payments themselves (which are often less than the cost of an ice cream). Ultimately, I think it is important that tourists continue to visit and support destinations and businesses where there is a tourist tax.
I have done a lot of research on tourist taxes and considered many different angles, before reaching an opinion on the topic. As this is an opinion piece rather than an impartial news article, I didn’t include all of the research that influenced my viewpoint. For example, I researched whether tourist taxes impact tourist numbers and revenue; how tourist taxes are spent in destinations; and public support for tourist taxes in different destinations.
I know that VAT is higher for accommodation in the UK than in other destinations. However, tourists in destinations with lower VAT may face other additional costs, such as road tolls and entry for national parks. It would therefore require multiple articles to unpick national tax systems and revenue generation and to cover the nitty gritty of the economics behind tourist taxes. In general, I think that if tourists support tourist taxes and don’t see it as an off-putting payment but a positive contribution, there are few negative economic impacts to the concept.
Since the article focuses on my opinion that I support tourist taxes as a principle, I felt it was important to mention that this includes my home country.
My source regarding the proposal to introduce a visitor levy in Wales was the Welsh Government site where it states ‘The purpose of the levy is to raise additional revenue for local authorities to reinvest in the public services and infrastructure that make tourism a success…Visitors make extensive use of public goods and infrastructure such as roads.’
There is therefore an inference that the revenue could be spent on a range of infrastructure used by tourists. However, the details of how the visitor levy would be spent by local authorities will probably only become clear further down the line. If you have any additional sources outlining how this revenue would be spent, I would be interested to read them.
Many thanks again for your comment,
Ruthie