12 Countries That Impose A Tourist Tax When You Visit (And Why They Do It)

Travelling looks to be in full swing, now that most countries have eased out on the Covid-19 restrictions. Before you wipe that dust off your passport and make a flight booking to a holiday destination due to discounted rates and deals, do be reminded that you might have to pay tourist taxes to travel there.

For instance, popular holiday destination Thailand is planning to impose a tourist tax on foreign visitors soon this year at a rate of 300 baht (S$11.61) per foreign tourist to help restore tourism and to provide some health and accidental coverage for travellers.

Meanwhile, other countries are coping with the sudden surge in tourists (they call this term over-tourism) and have implemented tourist tax to manage the rising costs to clean the busier streets and others.

Read Also: 10 Popular Travel Destinations For Singaporeans And The Best Time To Book For Cheaper Flights

What Are Tourist Taxes

Sometimes tourist taxes are worked into airline tickets, other times the taxes are paid at the hotel or in restaurants. The taxes can also be weaved into visitor arrival or departure.

A tourist tax is observed as any revenue-generating measure targeted at tourists. It is a type of tax exporting, where the tax burden is shifted to non-citizens and non-residents. This is different from GST, or value-added tax and other taxes that usually both residents and tourists have to pay.

Some destinations have started or plan to start imposing taxes on tourists from this year onwards. This includes Barcelona (April 2023), Venice (in 2023 or 2024), and Thailand (in 2023). The taxes are to tackle the issue of over-tourism, in hopes of mitigating the negative effects of overcrowding, environmental degradation and the strain on local infrastructure.

Malaysia

Tourist tax in the country is a flat rate of RM$10 (S$2.91) per room per night, at any accommodation premises within the country. It has been in effect since September 1, 2017.

Accommodation operators are required to collect the tax from tourists staying at their premises, and then the operators pay the Royal Malaysian Customs Department.

The fee may be lower depending on the type of accommodation.

Thailand

The country is floating the idea of implementing the 300 baht (S$11.61) tourist tax likely after September this year, after the next government is formed.

The tax will be collected on visitors entering Thailand. Fees are waived for foreigners who enter the country using a border pass or border crossing letter. It also exempts local government officials at the border and those who do not have passports but a letter of permission to work in the country.

The funds collected will be used as accident insurance for tourists, restoring tourism, as well as repatriating the remains of foreign travellers who die while in the country.

Indonesia, Bali

In Bali only, you will have to fork out tourist taxes. Overseas visitors to Bali must pay a fee of IDR 150,000 (S$13.29), from 2024. The tax revenue raised will go to environmental and cultural preservation.

Multiple media reports have surfaced of unruly tourists flouting traffic regulations and being disrespectful to the local culture, putting a strain on the relationship between locals and visitors. The island plans to shift from mass tourism to becoming a quality tourism destination.

Bhutan

There is a high tourist fee imposed for visitors, at US$200 (S$266.12) per person per day during peak periods, and slightly cheaper in low travel periods.

The fee, however, is quite comprehensive, as it covers accommodation, transportation in the country, a guide, food, and entry fees.

Japan

Known as a departure tax, visitors to Japan pay 1,000 yen (S$9.44) when they leave the country.

The fee is to help the country better manage the tourism sector, which is seeing a huge boom in tourism since its reopening.

New Zealand

It costs $35 (S$28.88) New Zealand dollars and the fee is charged n tourists, people on working holidays, students and workers going to the country. The levy is called the International Visitor Conservation and Tourism Levy.

However, Australians are exempt from this fee.

European Union

From next year, non-European Union (EU) citizens will have to fill out a €7 (S$10.33) application in order to enter.

The fee is exempt for those under 18 or above 70. This scheme was postponed and was supposed to come into effect in November this year.

France

A tax is added to your hotel bill and the rates depend on the city you are in. Prices start from around €0.20 (S$0.30) to around €4 (S$5.90) per person, per night.

Cities like Paris and Lyon take the funds to maintain tourism infrastructure.

Italy

The taxes are imposed depending on where you visit. Rome’s fees, for example, are from €3 (S$4.43) to €7 (S$10.33) per night depending on the accommodation.

Venice

The unique city is planning to charge a fee to tourists, of between €3  (S$4.43) and €10 (S$14.75), based on whether it is low or high season.

The plan is to implement the charges in 2023 or 2024, although this policy has been postponed multiple times.

Spain

Barcelona

Barcelona’s tourist tax will be increased over two years. There is a municipal fee of €2.75 (S$4.06). Next year, the fee will rise to €3.25 (S$4.79), from April 1, 2024. The proceeds will be used to improve roads, bus services, and escalators – to enhance the city’s infrastructure.

The tax will apply to visitors staying in official tourist accommodations.

Valencia

A tourist tax will be made for travellers staying in all types of accommodation – hotels, hostels, apartments and even campsites. The tax will start end of this year or early next year.

The rate will be between €0.50 (S$0.74) and €2 (S$2.95) each night, for up to seven nights, depending on their chosen accommodation.

The tax funds will be funnelled into the sustainable development of the region’s tourism industry, as well as provide cheaper housing for locals in tourism hotspots.

Portugal

The tax is charged per night per person, for travellers who are older than 13. It is applied in a small fraction of Portugal’s municipalities, and the fee is around €2 (S$2.95) per night. You usually only have to pay it on the first seven days of your stay, or less depending on the municipalities.

Algarve Town is a popular tourist destination in Portugal, and there are two municipalities in the town that already charge a tourist tax. Another area, Olhão recently began charging visitors. A higher rate is imposed between April and October, and a reduced rate for November to March.

Olhão	€2 (S$2.95) a night for April – October; €1 (S$1.48) a night for November – March (Capped at 5 nights)
Faro	€1.5 (S$2.21) per night up to 7 nights for March -October
Vila Real de Santo António	€1 (S$1.48) per day up to 7 days

United States of America

Often called an occupancy tax, lodging tax or hotel tax is charged on travellers renting accommodation in most of the US.

You will have to pay the fees at hotels, inns, and motels. The fee can be up to 17% of your hotel bill.

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