Several destinations, including Iceland, Bali, and Barcelona, are implementing new taxes aimed at tourists this year. Tourist taxes are usually small daily fees typically levied against overnight guests. The taxes are usually part of a destination’s plan to lessen or avoid overtourism. These additional fees generally have to be paid before or on arrival at your accommodation of choice. It’s also another way popular tourist destinations can earn more revenue from visitors.
How Much Is It?
Most countries that utilize a tourist tax have either a per-night fee or a flat fee. However, the fee ranges greatly from place to place.
One of the world’s most expensive taxes on visitors is in Bhutan. Its Daily Sustainable Development Fee is $100 per night and helps to preserve the area’s natural beauty. Until recently, it was $200 per night.
Alternatively, travelers can visit Bali or Indonesia, and pay a flat tourist tax of $10. According to Balinese officials, the fees will be used to “contribute to the nobility and preservation of Bali’s unique culture and nature environment” as well as island sustainability and tourism management.
In Barcelona, due to overtourism, the government has to set a tourist one-time fee of about $3.50 with plans to raise it over the next two years. In Iceland, the government reintroduced its tourist tax to better handle the environmental impact of travelers into the country. Iceland’s nightly tourist tax rate is about $7.50.
Are Tourist Taxes New?
Though not new, this form of taxing travelers is increasing globally, with other first-time destinations entering the tourism tax world. Several destinations are still undecided about implementing a new tax but are considering them.
Hawaii is a popular tourist destination that has dealt with overtourism and its impact for years. Recently, many residents have engaged in campaigns for people to stop visiting, fearing greater negative impacts on the island’s natural beauty, culture, and resources. Hawaiian officials are currently considering adding a one-time “climate tax” of $25 paid directly at check-in.
The Impact of Taxing Tourists
Most tourist taxes around the world are small fees, but some can be deciding factors in whether or not to visit a destination. Bhutan, at $100 per night, is relatively steep and could deter certain guests from visiting or staying for long. A two-week vacation in Bhutan would cost $1400 in taxes alone, but the same two-week vacation in Bali would only be a flat fee of $10.
Travelers are encouraged to research their chosen destination and be aware of the tourist taxes they might be signing up for.
