EU considers increasing tourist tax for foreign visitors to offset pandemic debt

The European Commission (EC) intends to raise the tourist tax for citizens arriving from the United Kingdom and the United States in an attempt to help reduce the bloc's €350 billion debt incurred during the COVID-19 pandemic.

This proposal has been reported on by Politico, which cites an internal document it has obtained from Poland, the member state that currently holds the presidency of the EU Council.

"It appears there is an opportunity for a gradual increase in the [travel] fee, which would strengthen the long-term revenue potential," states the internal memo.

According to unnamed European diplomats, raising the tourist levy is one of the most popular topics expected to be discussed at the EC’s budget meeting on July 16, while another EC official told the newspaper that a "potential adjustment of the fee" is being considered in light of inflation.

Germany has criticised the initiative, arguing that the measure could discourage tourists from travelling to Europe. It is noted that the increased tourist tax could bring in less than €1 billion annually to the EU budget, not nearly enough to cover the bloc's COVID-19 recovery expenses of annual debt repayments of €25 billion to €30 billion that will start in 2028.

Currently, foreign tourists who do not require a visa to enter the EU must register themselves in the European Travel Information and Authorisation System (ETIAS) and pay a €7 fee, which applies to 60 countries, including the UK and the US.

By Nazrin Sadigova