- Tourist taxes are increasingly common around the world as a way to combat overtourism and fund sustainable tourism practices.
- Although the effectiveness of these taxes in combating climate change is still debated, their growing popularity reflects a greater awareness of the need for sustainable tourism.
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Travelers keen to explore ancient ruins and relax on beaches with some of the the bluest waters in the world will now face a new tax in Greece. Unlike visa fees or general excise taxes, these fees are specifically aimed at combating climate change.
Earlier this year, the Mediterranean country announced the introduction of a new accommodation tax called “resilience costs in the face of the climate crisis” To be applied only during the high tourist season, from March to October. When in effect, it almost doubles the old lodging tax.
The tax will be paid upon check-in, the amount varying depending on the level of accommodation chosen, ranging from 1.50 euros (approximately $1.64) per night for apartments and one- and two-star hotels to 10 euros (approximately $10.96) per night. night for five-star hotels.
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With travel to Greece peaking last summer, the new tax is expected to bring in about 300 million euros (about $329 million) in revenue this year. This money will be used to finance reconstruction efforts following last year's heatwave, deadly forest fires and extreme flooding – the worst on record. It is also expected to contribute to other environmental initiatives related to climate resilience.
The new Greek tax is one of several tourism taxes implemented around the world to combat climate change and overtourism. Taxes place a responsibility on visitors to help protect the very destinations they enjoy. As sustainable destination management becomes increasingly critical for many locations, travelers should expect these fees to be here to stay.
“Many cities are recognizing the need for sustainable tourism practices, which is leading to higher taxes to fund necessary initiatives,” said Anna Abelson, professor of sustainability and tourism at the Tisch Institute of Hospitality at the NYU School of Professional Studies.
Here's everything travelers need to know about tourist taxes.
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What are tourist taxes and why are they becoming more and more popular?
Over the past 20 years, every destination in the world has imposed some sort of tax on tourists, according to Abelson. Most funds have been allocated to managing the economic impacts of tourism, but the focus has shifted to destination management as these places feel strained.
Greece, New Zealand, Bali, Amsterdam, Venice and Iceland are just some of the countries that have increased or introduced a tourist tax in 2024 alone. Earlier this year, Hawaii proposed a $25 climate tax to be paid by the 9.5 million annual visitors. If adopted, it would have been the first American state to introduce such a tax. Estimated to generate $68 million in revenue annually, the tax would have funded reef restoration, green infrastructure, and wildfire and flood prevention.
These fees can serve several purposes: to reduce the number of tourists, to discourage short visits so that travelers spend more in the local economy, or to provide a funding mechanism for various initiatives, according to Chris Imbsen, vice president of sustainability and research for the world. Travel and Tourism Council.
Conversely, the fees could also disproportionately price low-income travelers. Since 2022, Bhutan has been charging travelers very expensively “sustainable development tax” $200 per person per day. On September 10, the Galapagos Islands, known for its abundant wildlife, doubled its entrance fee from $100 to $200 per person for up to 50 days of travel – the first price increase in 26 years.
“For us, the fee increase reflects the positive commitment shown by the Ecuadorian government to the long-term conservation of the Galapagos Islands,” said Paulina Burbano de Lara, CEO of Metropolitan Touring, which offers land explorations and cruises Galapagos. in a press release. “We see this as a commitment to safeguarding the fragile and unique ecosystem of the islands for the benefit of future generations. »
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How do travelers pay tourist taxes?
Typically managed by local or national governments, these taxes are collected in a variety of ways, such as at hotels or at entry or exit points at airports or ports.
- After being suspended during the pandemic, Iceland reinstated its tourist tax earlier this year, charging hotel guests 600 ISK (about $4.42) and 1,000 ISK (about $7.36) to cruise passengers.
- On February 14, Bali began charging foreign travelers 150,000 rupees (about $9.56), which could be paid in advance of their trip or at immigration at the airport.
- Amsterdam increased its tourist tax to 21.80 euros (about $23.88) for hotel guests and 11 euros ($12.05) per person per day for cruise passengers.
- Venice made news when it tested a 5-euro fee (about $5.48) for day-trippers on peak summer days. Travelers had to “reserve” a slot online and present a QR code if stopped by authorities. In July, the lagoon city announced it would renew the fees and increase the price in 2025.
Where does the money go?
For the most part – as in Bali and Iceland – tax revenues would finance initiatives in environmental protection and conservation, cultural heritage preservation and infrastructure improvements, Abelson said .
These efforts likely resonate with 71% of travelers hoping to “leave the places they visit better than when they arrived,” as Booking.com points out. Sustainable Travel Research Report 2024 find.
For some, like New Zealand, which publishes annual reports IVL funding allocations make it easy to see exactly where revenue is going: recovering critically endangered birds and building conservation enforcement capacity. For others, it's not so obvious.
“Transparency in how funds are allocated can build trust and encourage responsible tourism behaviors,” Abelson said. “Once travelers understand transparency in reporting how tax revenues are used, this could encourage their support and participation.”
For example, Majorca introduced a tax on sustainable tourism in 2016 of a few euros per night for all nights in tourist accommodation, saying the revenue would go towards initiatives such as investing in sustainable tourism jobs and funding research projects science related to climate change. However, Imbsen said that details and reporting on the successes of this tax are inaccessible or at least very difficult to find.
Even though travelers can know the tax status they paid, these fees will not go away. In fact, as weather conditions become more severe and sea levels continue to rise, we can expect to pay even more to travel. “Prices are likely to rise to cope with environmental degradation,” Imbsen said.
Are they effective?
That's the big question. “As far as their effectiveness, the jury is out,” Imbsen said.
Abelson agrees, adding that it “depends on the outcome.” In some places, tourism tax revenues have been shown to fund several projects benefiting the community and the environment. Italy Lake Como used 348,000 euros (about $383,931) in tourist tax revenue from the first six months of 2024 to finance the city's organic waste collection, maintenance of the lakeshore and restoration of the center's frescoes historical.
In other cases, the tax has been seen as less effective. Last summer, Venice's attempt to limit the number of tourists by introducing a nominal fee equivalent to the price of a cappuccino did not deter many travelers. Costs have been taken into account “a failure” by the locals who did not notice any significant difference in the hordes of tourists.
This may be partly explained by the novelty of the concept. “Many destinations have yet to establish proper pricing strategies that could really make a difference,” Abelson said.
However, when addressing an issue as large as climate change, the effectiveness of these taxes is far from simple, according to Marta Soligo, professor and director of tourism research at the University of Nevada, Office of Economic Development. from Las Vegas.
“If we talk about climate change and overtourism, this is a global phenomenon, and a tourist tax can be seen as just a band-aid,” she said. Venice, a UNESCO World Heritage Site, was hit by flood in recent years and is at the risk of sinking.
For her, the question of the impacts of climate change should be posed to local communities, relying on indigenous knowledge in land management or by imposing taxes on larger companies, like “polluters”.
While it is unclear whether tourism taxes can significantly mitigate the impacts of climate change and mass tourism – the most harmful type of travel, according to Soligo – the fact that they are increasingly becoming widespread is a step in the right direction.
“Thinking about global warming and tourism, 10 years ago you didn’t see a lot of policy on that topic, so it’s good that we’re thinking about it and talking about it now.”
Contributor: Josh Rivera, USA TODAY
