Tourist tax is becoming increasingly popular within the travel business, as more popular holiday destinations either start to apply the tax or discuss the possibility of introducing it.
With the cost of living continuing to rise around the world, many European holiday destinations have increased tourist tax rates, with some even introducing an entry fee for non-residents.
Quotezone.co.uk, the UK travel insurance provider, has stressed the importance of researching travel destinations prior to a holiday, as additional tourist taxes have been introduced in increasingly popular locations.
Travel insurance expert Tiffany Mealiff of Quotezone.co.uk points out how these taxes often fund infrastructure improvements and prevent overcrowding.
According to Mealiff, new and increasing tourism taxes across Europe are enabling cities to fund initiatives to attract more travellers, support local infrastructure and businesses, and mitigate the damage caused by overtourism.
Tourist Tax Rate Rises
Travellers are warned by Mealiff: "If you are going on a trip to a European city this year, you need to be aware of the potential additional costs of your holiday - which are often not obvious in advance and are usually due at the time of departure from the accommodation".
Quotezone.co.uk reports that Venice has announced plans to charge tourists who enter the city's historic centre during the day. Although the tax will not officially begin until 2025, visitors currently pay €5 if they enter between 8.30am and 4pm.
However, this tax only applies to people visiting Venice for the day; overnight visitors will pay between €1 and €5 per night, depending on their accommodation. In addition, several other European cities have increased the tourist tax rates for people staying in official hotels.
Among the places most visited and affected by the tax increase is Paris, where travellers now face charges varying from around €0.65 for a two-star campsite to €14.95 for a palace. As you would expect, the tax rate is set at around 5% of the total cost of the accommodation.
Quotezone.co.uk has warned that international visitors do not need to go abroad to deal with the increase in tourist tax, as Manchester has also increased its rate.
To generate funds to develop attractions, Manchester began charging visitors £1 for every night spent in one of the city's 73 hotels.
Since the implementation of the tax in April 2023, Manchester has reportedly accumulated over £2 million to invest in street cleaning and marketing initiatives.
British holidaymakers have also been warned to expect the tourist tax to hit even the popular seaside resorts of Cornwall and Devon in the near future.
The Cornish tourism chief has warned that he could "certainly consider" a tax on tourists, and has voiced his support for a "Cornish tax" to capitalise on the number of tourists visiting the holiday hotspot.