Traveling comes with its set of expenses, one of which might be a tourist tax. This fee is now being introduced in many of the most popular destinations around the world.
Below, we delve into what a tourist tax is, why it is implemented, and how it can affect your travel budget.
Tourist Tax Definition
A tourist tax, also known as a visitor tax or a hotel tax, is a fee that travelers are required to pay when they stay in paid accommodation within a specific area. The main purpose of this tax is to generate revenue that can be used to maintain and improve the locality.
It’s commonly used to enhance tourism infrastructures, and fund local projects that aim to enrich the visitors’ experience. It also serves to mitigate the negative effects of tourism on the environment and local communities with a high tourist turnover.
Tourist Tax Examples
Some examples of destinations where you need to pay a tourist tax include:
- New Zealand – Most foreign tourists need to pay an International Visitor Conservation and Tourism Levy (IVL). Visa-exempt visitors pay this tax when applying for the NZ ETA.
- United States – Although you don’t need to pay a tourist tax to travel to the United States, a hotel, or lodging fee is usually charged at most rented accommodation.
- France – A ‘Taxe de Séjour’ is charged in your accommodation and varies depending on the type and quality of the business. You may also need to pay an additional regional tax in some areas, such as Île-de-France.
- Spain – If you’re traveling to the Balearic Islands, which includes Mallorca and Ibiza, you need to pay a Sustainable Tourist Tax. Popular cities such as Barcelona and Valencia have also introduced tourist taxes in recent years.
Tourist taxes also apply in many other European countries, including Austria, Germany, and Greece. Additionally, from 2024, travelers from outside the Schengen Area must pay a fee to obtain an ETIAS visa waiver to travel to Europe.
Exemptions from Paying Tourist Tax
Everyone must pay tourist taxes where they are applicable. However, depending on the destination, there may be various exceptions:
- Charges are frequently waived or lowered for children
- Individuals with disabilities and one companion
- Those admitted to medical institutions as well as their caregivers
- City workers
- Bus operators
- Tour directors
Note that if you fall into one of these categories, you must usually provide the necessary documentation to be excluded from paying tourist taxes.
How Much Does the Tourist Tax Cost?
The amount levied as tourist tax can vary greatly, depending on a range of factors. These include the destination, the type of accommodation, and sometimes, the duration of the stay.
Generally, it’s charged per person per night, although there are places where a flat rate is applied for the entire stay. It’s difficult to pinpoint an exact amount for the tourist tax, as it tends to fluctuate based on the policies of the individual jurisdictions.
However, in Europe it can range from as low as 0.20 cents to as high as 21 euros. We advise you to revise the visa policy for your destination before your trip to check whether a tourist tax currently applies.