The Tourist Tax

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Tourist taxes are not new, but they are becoming increasingly common.

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• New Zealand nearly tripled its entry fees for tourists, effective Oct. 1st
• Bali introduced a new tourist tax in Feb.
• Iceland reinstated its tourism tax that it had suspended during the coronavirus pandemic at the start of the year

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How or where tourists pay these fees can vary. They are usually levied indirectly through accommodation providers like hotels or Airbnb. More than 60 destinations now charge tourism fees, including many places in the United States and Europe.

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These fees aim to decrease the total number of visitors and support municipalities strained by over-tourism. However, studies on tourist taxes, like this one, are inconclusive regarding whether these fees effectively limit visitor numbers.

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Next time you travel, look out for the tourist tax!