Many countries have seen tourism development bring in billions of USD in revenue each year. In addition, the tourism industry provides people with more job opportunities, contributes to the development of the economy and society, and makes a significant contribution to the local budget.
However, the sudden increase in tourists has also brought about numerous inconveniences. Therefore, in Italy, the city government of Venice has implemented a policy limiting the number of tourists in one tour to no more than 25 people and prohibiting tour guides from using public address systems on the streets. In Portugal, the city of Lisbon has decided to double the tourism tax from 2.15 USD to 4.30 USD, starting from September 1.
Other popular tourist destinations, such as Las Ramblas Boulevard in Barcelona, Spain, Dam Square in Amsterdam, the Netherlands, and St. Mark's Square in Venice, Italy, have also increased their existing tourism taxes to limit overcrowding. City officials say that revenue from tourism taxes is used to improve the quality of life for local residents.
Barcelona
Known as the busiest city in Spain, Barcelona welcomed 15.6 million tourists in 2023. The city has implemented two forms of tourism tax, according to information from Professor Núria Guitart-Casalderrey at the University of Barcelona.
The first tax, introduced in 2012, applies to guests staying at hotels and tourists taking boat tours throughout Catalonia - a large region including the city of Barcelona. This tax is calculated on a sliding scale. For example, guests staying at five-star hotels in Barcelona are subject to the highest tax rate of 3.79 USD per person per night.
Professor Guitart-Casalderrey said that half of the revenue from this type of tax is managed by the city government of Barcelona. Meanwhile, the city has full authority to use the second type of tourism tax, which was introduced in 2021.
In total, the Barcelona City Council expects to collect 103 million USD in tourism taxes in 2024.
These fees are not a hindrance to tourists visiting Barcelona, and they also help improve the city's appearance and raise the quality of life for residents, according to Professor Guitart-Casalderrey.
The Barcelona City Council publicly lists the activities and projects funded by the revenue from tourism taxes, including cultural events, expanding public transportation services, and funding research on tourism.
Barcelona Turisme CEO Mateu Hernàndez said that the tourism tax allows the city to invest more heavily in exhibitions, festivals, and sports events, benefiting both local residents and tourists.
The revenue from tourism taxes also improves the "daily life" of Barcelona residents. "For example, by investing in air conditioning systems for elementary schools, demonstrating the direct benefits of tourism for the community," he explained.
Amsterdam
Amsterdam has the highest tourism tax in Europe, charging 12.5% of the room rate per night at hotels, campsites, and serviced apartments. For example, four-star hotels in the Dutch capital are quite expensive, with a basic room rate of up to 216 USD per night, equivalent to a tourism tax of 27 USD.
Deputy Mayor of Amsterdam Hester van Buren said that the city expects to collect 262 million USD in tourism taxes in 2024. The revenue will be used to minimize the impact of tourism and improve the city's appearance.
"We ask tourists to contribute to keeping Amsterdam clean, safe, and attractive, just like we ask our residents to do through local taxes," van Buren said. "On the one hand (the tax is used) to minimize the negative effects of overcrowding, such as litter, sanitation, and law enforcement. On the other hand, we use this money for infrastructure, education, cultural life, and sports facilities."
She said that tourists are not deterred by the high tourism tax, which started at 5% in 2018. Amsterdam has welcomed an increasing number of tourists, with around 9 million visitors in 2023.
According to Professor Greg Richards of Tilburg University in the Netherlands, "It is likely that when the tourism tax increases, tourists will stay in surrounding cities and only visit Amsterdam during the day. This means that Amsterdam may lose revenue, but it will not reduce the overall pressure of tourists on the city. This effect has been seen in Venice, which is a reason to apply a tax to day-trippers."
Venice
There is hardly any destination in the world as crowded as Venice, a charming and ancient city surrounded by dozens of canals in northeastern Italy. Jan van der Borg, an economist and tourism expert at the University of Ca' Foscari in Venice, said that the city welcomes around 30 million tourists each year, including 24 million day-trippers.
The overcrowding of tourists in Venice is so severe that UNESCO warned in 2023 that it would consider adding the city to the list of World Heritage sites in danger. Van der Borg believes that this risk has prompted the city government of Venice to experiment with a new entrance fee for day-trippers. From late April to mid-July, tourists who did not book a hotel room in Venice were required to pay 5.40 USD per person per day to enter the city.
The city government of Venice believes that the revenue from day-trip tourism is part of the effort to reduce the number of tourists. However, van der Borg said that the number of tourists did not decrease during the trial period.
According to local media, the city government of Venice is considering re-implementing the day-trip fee and the fee may be doubled.
