Global surge in tourist taxes aims to curb overtourism

The Washington Post highlights that tourist taxes are increasingly being adopted worldwide as a strategy to manage "overtourism" and preserve natural and cultural sites.

Authorities worldwide are increasingly implementing tourist taxes to combat "overtourism." New Zealand recently announced plans to nearly triple its visitor fee, originally introduced in 2019 to preserve the country's natural beauty. Iceland reinstated its tourist tax this year after a brief pause during the pandemic, raising the levy and extending it to cruise ship operators to support conservation efforts.  

In the spring, Venice began charging day-trippers admission fees, while Amsterdam increased taxes on overnight stays, both aiming to address concerns about overcrowding and strained infrastructure. Tourist taxes aren't a new concept—France introduced a tax on resorts in 1910, and many US cities, as well as others in Europe, have long had hotel taxes.

Today, more than 60 destinations globally impose some form of tax on visitors, according to tourism researchers. Bhutan, a small Himalayan country nestled between China and India, imposes one of the world's highest fees—around $100 per day—to protect its untouched landscapes from the large number of tourists that flock to neighboring Nepal.

Several other destinations are also introducing new tourist taxes or planning to implement them in 2024. Iceland Iceland's stunning natural attractions, including bubbling hot springs, pristine ice caps, glaciers, and active volcanoes, have turned it into a popular tourist destination. Each year, millions of visitors flock to the island, far outnumbering its population of around 400,000. In response, Iceland has reinstated a tourist tax that was suspended during the pandemic. 

This year, the hotel tax doubled to 600 Icelandic krona (about $4.32) per night, and for the first time, a 1,000-krona fee was introduced for cruise ships docking at Icelandic ports. Bali, Indonesia The pandemic-induced drop in visitors prompted residents of Bali, Indonesia's popular resort island, to reassess their relationship with foreign tourists and the environmental effects they bring.

In response, authorities introduced a tourist tax of 150,000 Indonesian rupiah ($9.70) in February. The revenue from this tax is intended to help preserve cultural sites and beaches, as well as to support efforts to curb inappropriate behavior by tourists. Venice Venice has a complex relationship with tourists. 

While they contribute approximately $3 billion annually to the local economy, they also overcrowd the city's narrow streets and iconic piazzas, leaving behind significant amounts of litter. In April, Venice introduced a 5-euro (about $5.53) fee for day-trippers. Overnight visitors were already subject to a tourist tax ranging from 1 to 5 euros.

Now, Italian officials are contemplating increasing the tax across the country to as much as 25 euros, a move that has raised concerns among tourism advocates.

New Zealand

To preserve its natural beauty from the growing number of tourists visiting small towns, secluded beaches, and snow-capped peaks, New Zealand introduced a tourist tax in 2019. Recently, the government announced plans to nearly triple this levy to 100 New Zealand dollars ($61.82) starting October 1. (Exemptions apply to Australians and many Pacific Island residents.) 

Amsterdam

Amsterdam has been addressing overtourism through various measures, such as banning new hotel construction, limiting the number of overnight stays, and initiating a "Stay Away" campaign to discourage "nuisance tourists" drawn by the city's relaxed drug laws and vibrant party culture. In 2024, the city increased the tourist tax on hotel rooms from 7 per cent to 12.5 per cent. Day-trippers on sea and river cruises now pay a fee of 14 euros ($15.52). 

Barcelona

Over the summer, thousands of residents in this Spanish city protested against overtourism, with some wielding brightly colored water pistols, playfully spraying unsuspecting diners on the city's outdoor patios. In October, the city will increase the tax on tourist accommodations to 4 euros ($4.43) per night. Additionally, visitors are subject to a regional tourist tax, which varies based on the accommodation's star rating.

Britain

Last year, Britain introduced an electronic travel authorization (similar to the US ESTA) for visitors from certain countries. By the end of 2024, travelers who don't need a visa—including those from the US and EU—will be required to obtain this authorization before entering the UK. While promoted as a border security measure rather than a tourist tax, it will apply to tourists and cost 10 pounds ($13.12). Additionally, the European Union is set to implement a similar travel authorization for short stays by visitors from 60 countries next year. Meanwhile, the English county of Kent, along with officials in Scotland and Wales, are considering taxes on overnight stays.