Tourist taxes: Which countries charge a tourist tax – and why?

Tourist taxes are becoming the norm across the world, from bustling European cities to sunny Caribbean islands. The latest potential addition? The Scottish Highlands. The incredibly popular holiday destination is flirting with the idea of a 5% tourist tax to invest in the local infrastructure.

This isn't the first time Scotland has considered such a measure – in August 2024, councillors in Edinburgh voted to move ahead with a tourist tax to fund improvements to the historic city. Both taxes could be introduced as early as 2026.

So, what's the deal with tourist taxes, and what do they mean for your next holiday? We're here to explain all things tourist tax, aiming to clear up the fog before your next getaway.

What are tourist taxes?

Think of tourist taxes as the entry fee to the cool club of destinations you're visiting. These little charges are slapped on by places looking to keep them in tip-top shape. But the price of admission can swing wildly, depending on where you're laying your head down at night.

Where does my tourist tax money go?

With more of us itching to roam, tourist taxes are popping up as a way to manage the footprint we leave behind. Whether it's keeping the natural splendour spotless or sprucing up the infrastructure, the coin dropped on these taxes is all about making sure the places we love stay lovable for years to come.

Which destinations have the highest tourist taxes?

Paris is on the higher end of tourist tax fees, where you could be paying up to €14.95 per night if you're staying in luxe accommodation. That could soon be trumped by Italy – the country has proposed an increase in fees of up to €25 for its most popular destinations.

Venice already has its own €5 tourist levy for day visitors. This fee is applicable on specific days, particularly on peak weekends and certain other days between April and mid-July. If you're staying overnight, your hotel bill will include a city tax ranging between €1 and €5 per person per night, depending on various factors like the time of year and the type of accommodation.

And let's not forget Barcelona, with a tourist tax that can reach up to €7.50 per person per night in some cases.

Which destinations have recently introduced tourist taxes?

Bali is one of the latest spots to join the tourist tax club, asking visitors to chip in £7.41 (IDR 150,000) per visit as of February 2024.

As of March 2024, Portugal's sunny Algarve region also decided it was time to dip its toes into the tourist tax waters, aiming to keep those beautiful beaches pristine for future visitors. During the high season (March to September), the tax is €2 per person, per night. During the low season (October to February), it drops to €1 per person, per night.

Further afield, New Zealand has joined the ranks, increasing its International Visitor Conservation and Tourism Levy (IVL) to NZD $100 per person in October 2024. This one’s charged at the time of visa application. And then there's Japan, which introduced a so-called ‘sayonara’ tax, a departure fee of £5.06 (¥1,000) added to the ticket price for outbound transport for all foreigners as of 2019.

How much is the tourist tax for…?

Tourist taxes across Europe can cost as little as €0.50 or as much as 12.50% of the price of your accommodation. Below, we looked at the tourist taxes of 17 popular city break destinations in Europe.

Valencia, Malaga and Madrid currently have no tourist tax, while Copenhagen, Krakow and Dublin are considering implementing one.

Are all tourist taxes charged per night, or are there other ways that they are charged?

Unfortunately, the world of tourist taxes is as varied as the destinations we love to visit.

While many spots take the nightly charge route, there's definitely more than one way to collect that extra bit of cash.

For instance, some places might ask for a one-off fee right when you arrive, like a welcome (or maybe not-so-welcome) gift. Then you've got spots that decide on a percentage of your total bill, making the maths a bit more interesting.

And don't forget about the departure taxes, giving you one last (expensive) goodbye hug as you leave.

Do booking sites take payment for tourist taxes or do I need to pay while I'm on holiday?

It's a bit of a mix when it comes to handling tourist taxes on booking sites. Some of them will collect the taxes during your booking, making it all neat and bundled in your upfront payment.

But then, there are times and places where the booking sites give you a heads-up, but leave the actual tax collection for when you arrive, turning it into a little welcome-to-your-holiday extra.

It’s always a good idea to give the fine print a once-over or reach out to your accommodation to be super sure about when and how you'll be parting with that tax cash!

Are there any tourist tax scams I should watch out for?

There are unfortunately tourist tax scams that you need to be aware of. Scammers prey on the fact that tourists are often unfamiliar with local regulations and might be more willing to make payments to avoid any perceived hassle.

One common scam involves criminals posing as officials, sometimes in uniform, and demanding on-the-spot payment of a ‘tourist tax’. This 'tax' might be completely made-up, or a way to intimidate you into paying much more than the actual fee. These scams often occur on the street or at unofficial entry points, according to a report by the Australian government on travel safety.

Another method involves the use of fake documents or receipts to add a level of legitimacy to the fraud. In some unfortunate cases, even hotel staff might try to overcharge or double-charge the tourist tax for their own financial gain.

It's important to remember that legitimate tourist taxes are typically collected at your hotel or through official booking channels. If you're unsure, always verify the tax requirement and rate with your hotel or a local tourism office. Be wary of anyone demanding immediate payment outside of official settings.