A RELATIVELY NEW CONCEPT OF TAX
The concept of a tourist tax involves visitors levied to contribute to local infrastructure and services. This relatively new concept of tax has recently gained traction in various destinations worldwide. Several destinations around the world have now adopted this type of tax in some way or form. Historic cities, such as Venice and Barcelona, are among the latest high-profile destinations to have recently introduced this type of tax for visitors.
A TAX THAT VARIES WILDLY
Normally levied through the type of accommodation, there currently seems to be no control over the amount charged. Tourist taxes can vary wildly because of this creating a confusing minefield of charges for most travellers. With some travellers now seeking more value-for-money destinations, questions are being raised as to whether this model is still sustainable.
A REDUCTION IN TRAVELLER NUMBERS
The introduction of new entry controls at European Union borders has recently seen the overall cost of travelling to Europe increase. This, in addition to tourist taxes has negatively affected visitor numbers, prompting several analysts to remain sceptical as to whether taxes are still beneficial. Most tourist destinations still rely on large visitor numbers to maintain their local economies and visitor numbers may dwindle further, as people seek cheaper alternative ways of spending their recreational time away from home.
A CONSIDERATION OF TAXES
This view is supported by recent surveys that have indicated that cash-strapped travellers are seeking value for money above all else. Travellers now seem to be considering taxes for the first time when choosing where to travel to. Some holidaymakers specifically now only choose destinations that have no tax at all. If this trend continues, then there will soon be a reduction in traveller numbers to destinations that operate a tourist tax.
CYPRUS HAS NO TOURIST TAX
Whilst the implementation of such a tax in Cyprus has been a subject of much discussion, there are no immediate plans to introduce one. Authorities maintain that balancing the need for increased revenue with the imperative to keep Cyprus competitive is paramount. Cyprus has traditionally relied on its tourism sector as a significant contributor to its economy. Cypriot authorities have maintained that keeping Cyprus as appealing as possible is crucial for the island’s long-term prosperity. The absence of a tourist tax is an effort to maintain the attractiveness of the island for travellers seeking affordable vacation options. The overall view is that the island’s ‘no tax’ policy, has not only enhanced the overall visitor experience but has also encouraged longer stays and increased spending locally.
A GROWING DEMAND ON PUBLIC SERVICES
While there have been proposals regarding the introduction of a tourist tax, mainly to address the growing demands on public services and environmental preservation, local authorities have yet to reach a consensus. A tourist tax could theoretically provide valuable funding for enhancing tourist facilities. This extra money could be used to maintain natural resources and protect the cultural heritage of Cyprus. However, critics argue that imposing additional fees might deter potential visitors impacting a key sector of the economy. As the tourism landscape evolves, the consideration of a tax could emerge again, but for now, visitors can enjoy the charm of visiting Cyprus without the burden of a tourist tax.
A TOURISM BASED ECONOMY
Revenue from the island’s tourism sector marked a significant increase in 2024, compared to the previous year. During this time, figures indicate that the average tourist spent just over €850 for the duration of their vacation in Cyprus. Tourists from Switzerland topped the spending list with an average total spend of nearly €1,200 per person during their stay. Visitors from Norway and Sweden followed closely with an average spend of just over €1,000 per person for the duration of their stay. The most budget-conscious tourists were from Greece with an average spend of just over €500 per person.
A BREAKDOWN OF SOME OF THE TOURIST TAXES CHARGED AROUND THE WORLD
Switzerland
Charges vary across towns, cities and cantons. Taxes for camping are usually lower than hotels. Fees can also vary significantly, from around €3 up to €7 per person, per night.
Netherlands
Amsterdam currently charges one of Europe’s most expensive tourist taxes. This is set at 12.5% of overnight rates. Other towns and cities are free to set their prices as they please.
Belgium
Towns, cities and municipalities are free to set their tourism taxes as they please. These are applicable to all non-inhabitants of the area, whether or not they are Belgian. In some places, such as Antwerp and Bruges, the charge is a flat fee. Brussels bases its tax on the size and rating of the accommodation.
Austria
Known as the Beherbergungsbeiträge, the charge varies between towns and is applicable to tents and caravans, as well as hotels, holiday lets and B&Bs. In Vienna a charge is set at 3.2% of all accommodation bills.
Germany
Popular cities such as Frankfurt, Berlin and Hamburg set a tax at 5% of accommodation costs. Other cities such as Munich have no charge.
Czech Republic
The Czech capital Prague charges the highest rates. All tourists are expected to pay the equivalent of about €2 for up to 10 nights in the city. Other popular cities, such as Brno, charge a little less.
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Hungary
Visitors to the Hungarian capital Budapest are charged an additional 4% on top of the per night cost of accommodation.
Slovenia
Charges vary between areas and are made up of a ‘tourist tax’, plus a separate ‘promotional tax’. The combined price usually equates to about €3 per person, per day.
Greece
‘Accommodation tax for tourists has been replaced with a new ‘climate tax’. This has increased the costs. Prices per person, per night, now start at €1.50, but can rise as high as €15. Rates are reduced during the off-season. Visitors to the islands of Santorini and Mykonos also face a €20 tourist tax at the port in the peak of the summer season.
Croatia
Rates vary depending on location and time of year. taxes are generally set at about €1 per person, per day, with reduced prices for children.
Portugal
Tourists can expect to pay between €1 and €2 per person, per night, but this is dependent on the accommodation type and the time of year. Taxes are capped however, after seven consecutive nights per stay and children are exempt from any charges.
Spain
Tourist taxes are only in place when visiting Catalonia and the Balearic Islands. Rates vary widely and are dependent on the time of year and type of accommodation. Visitors to Barcelona are charged up to €4 per person, per night in tax for a stay in a five-star hotel. In contrast, the tax in the town of Mogán, in Gran Canaria, requests just €0.15 per day, per person.
Italy
Taxes are included for visitors from more than 1,000 different areas all around the country. The range of charge is dependent not only on the area but the type of accommodation. Rates are usually between €1 and €5 per person, per day, but in some places, such as Rome, charges could be as high as €7 per person, per day.
France
All visitors are charged a tourist tax. The rate is set by local authorities and can range from as little as €0.20 to €5.00 per person, per day.
