The rise of tourist taxes

From hotel stays to museum visits to national park admissions, paying extra for the privilege of being a tourist is becoming increasingly common

Many destinations, from Ibiza to Bhutan, have long implemented visitor taxes, but now governments around the world are increasingly adopting this approach. For travelers already burdened by post-pandemic inflation in airfares and accommodation, these taxes can feel unfair, especially considering tourism's contribution to local economies.

Key takeaways

• There is a strong case for tourism taxes in certain areas. Travelers often contribute to litter, noise, and overcrowding, while high numbers of visitors during peak seasons can damage historic sites and fragile ecosystems. These taxes help offset these negative impacts and manage demand;
• It makes sense to allow local authorities to levy tourist taxes where appropriate. However, fairness and simplicity should be priorities when introducing such taxes. In cities, hotel-based taxes are common, but these should also apply to private rental platforms such as Airbnb to avoid loopholes;
• As the global middle class continues to grow, popular destinations such as beaches, mountains, and historic city centers will only become more crowded. Thoughtfully implemented tourism taxes can help ensure that tourism benefits both visitors and local communities.

Get the full story at the Financial Times