Edinburgh to join growing list of cities introducing tourist tax: Know more

Another major European city is gearing up to introduce a tourist tax, joining the ranks of destinations like Amsterdam, Berlin, and New York. Edinburgh will become the first city in Scotland to implement a transient visitor levy (TVL), a move that was approved by councillors on August 22, 2024.

What is a tourist tax?

"Tourist tax" refers to a fee levied by local governments on visitors staying in paid accommodations such as hotels, hostels, and holiday rentals. This tax is usually charged per person, per night, and is often added to the accommodation bill, separate from the room rate. The purpose of the tourist tax is to generate revenue for the local government, which is then used to maintain and improve public services and infrastructure that are impacted by tourism, such as cleaning, transportation, and cultural heritage preservation.

Edinburgh’s tourist tax

The transient visitor levy in Edinburgh will impose a 5% charge on paid accommodation, such as hotels, short-term lets, and bed and breakfasts. This levy is expected to generate between £45-50 million annually by 2028/29, with the funds being used for city maintenance, affordable housing, and preserving Edinburgh’s cultural heritage.

Cammy Day, Council Leader, expressing the council’s rationale behind the levy, said, "We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted. The visitor levy presents an innovative way of sustaining the sector and the city."

According to a press release from Edinburgh authorities, the levy is designed to help the council manage the demands of increased tourism while ensuring sustainable investment in the city.

Before the levy is fully implemented, a 12-week public consultation will take place, allowing residents, visitors, and businesses to provide feedback. This consultation will inform the final scheme, which is expected to be agreed upon by January 2025, with full implementation aimed for summer 2026.

Christina Sinclair, Director of Edinburgh World Heritage said, "The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the Unesco-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced, and promoted for future generations."

Tourist taxes around the world

Tourist taxes are common in many popular destinations around the world, including cities like Barcelona, Paris, and Venice. The rates and specifics of the tax can vary significantly depending on the location and the type of accommodation.

For example, in Barcelona, the tourist tax consists of both a regional tax and a city surcharge, which together can amount to several euros per night depending on the type of accommodation. In Paris, the tourist tax also varies by accommodation type and star rating, with higher rates for luxury hotels.

This tax is collected at the time of check-in or check-out and is mandatory for all visitors, though some exemptions may apply, such as for children or those on business travel under specific circumstances.

Business Standard has compiled a list of destinations where tourists are required to pay additional fees:

Austria

In Austria, visitors pay a nightly accommodation tax that varies by province. For example, in Vienna and Salzburg, the charge can be around 3.02% per person on top of the hotel bill, according to the Embassy of India in Austria.

Belgium

Belgium also imposes a nightly fee on visitors. The amount varies depending on the city and the hotel’s size or rating. In Brussels, the charge is typically around €7.50 (approximately Rs 702.29) per room, according to Embassy of Belgium in India.

Bhutan

Bhutan is known for its steep tourist taxes. As of 2024, visitors pay a daily fee of $100 (Rs 8,394.95), a fee set to continue until at least 2027. This fee supports Bhutan’s sustainable tourism initiatives.

Bulgaria

In Bulgaria, the tourist tax is modest, with a maximum charge of about €1.50 (Rs 140) per night for accommodation.

Caribbean Islands

Several Caribbean islands, including Antigua and Barbuda, Aruba, and the Bahamas, charge a tourist tax ranging from €13 to €45 (Rs 1,217 to Rs 4214). This fee is usually included in hotel costs or added as a departure fee.

Croatia

In Croatia, visitors pay a fee of 10 kuna (approximately Rs 125) per night during the peak tourist season, a measure aimed at managing high visitor numbers.

Czechia

In Czechia, the tourist tax is mainly applied in Prague. Visitors over 18 years old can expect to pay €2 (Rs 188) per person per night.

France

France’s ‘taxe de séjour’ varies by city and ranges from €0.65 to €8.13 per person per night (Rs 60 to Rs 760). Paris recently announced plans to increase this fee by up to 200% for all types of accommodation, including hotels and Airbnbs.

Germany

Germany imposes a ‘culture tax’ or ‘bed tax’ in certain cities like Frankfurt, Hamburg, and Berlin. The tax is typically around 5% of the hotel bill and helps support cultural and tourist infrastructure.

Greece

In Greece, the tourist tax depends on the number of stars a hotel has and the number of rooms booked. The fee can range from €0.50 to €4 per room per night, with the funds helping to pay off national debt.

Hungary

In Budapest, Hungary, visitors are charged 4% of their room price as a tourist tax, according to local tourism authorities.

Iceland

Iceland introduced a tourist tax in 2024, costing between €4 and €7 per night. The tax is part of efforts to protect Iceland’s natural landscapes amid growing tourist numbers, which now exceed 2 million annually.

Indonesia

In Bali, Indonesia, tourists are charged a one-time entry fee of $10 (€8.90). This fee goes towards protecting the island’s environment and cultural heritage.

Italy

Italy’s tourist tax varies by location. In Rome, the fee ranges from €3 to €7 per night. Venice has recently added a €5 fee during peak seasons to manage overcrowding.

Japan

Japan charges a departure tax of 1,000 yen (around €8) for all travellers leaving the country.

Malaysia

In Malaysia, tourists pay a flat rate of around €4 per night for accommodation, a fee that applies nationwide.

New Zealand

New Zealand’s tourist tax is collected as an International Visitor Conservation and Tourism Levy, which costs about €21 and is paid upon arrival, according to the New Zealand government.

Netherlands

Amsterdam, in the Netherlands, is set to increase its tourist tax by 12.5% in 2024, making it the highest in the European Union, as reported by local media.

Portugal

In Portugal, tourists pay €2 per night for the first seven nights of their stay. This tax applies to visitors over the age of 13 in certain municipalities, including Lisbon and Porto.

Slovenia

In Slovenia, the tourist tax varies by location and hotel rating. In Ljubljana and Bled, the fee is around €3 per night, as detailed in a recent tourism report.

Spain

Spain’s Balearic Islands charge a Sustainable Tourism Tax of up to €4 per night during peak seasons. Barcelona’s city authorities have announced plans to increase the city’s tourist tax to €4 in October 2024.

Switzerland

Switzerland’s tourist tax varies by location but is generally around €2.20 per night, according to local tourism boards.

Thailand

Thailand introduced a tourist tax of 300 baht (Rs 740.50) in 2022, which is included in the price of flights. However, as of 2024, Thailand's planned tourist tax has been postponed.

United States

The United States imposes an ‘occupancy tax,’ which varies by location. For example, in Houston, tourists can be charged an extra 17% on their hotel bill.

European Union Visa Costs

As of June 11, 2024, the cost for a short-term Schengen visa increased to €90 for adults and €45 for children aged 6 to 12, according to a recent announcement from the European Union.