The rise of tourism taxes and sustainable travel policies
- Paul Aage Hegvik
- Jan 23
- 7 min read
Updated: Feb 26
Tourist taxes have become an increasingly common measure for governments around the world to manage the impact of travel on local economies, infrastructures, and environments.
These taxes are often used to support sustainable tourism, promote environmental conservation, and regulate the flow of visitors to prevent overcrowding in popular destinations. While some countries implement modest fees, others, like Bhutan, have introduced more significant charges to balance the benefits of tourism with the need for long-term preservation.
Bhutan's shift: Sustainable development fee Adjustment
One of the most significant adjustments in tourism policy has been made by Bhutan. The government recently reduced its Sustainable Development Fee (SDF) from $200 to $100 per person per day. This adjustment, effective from September 1, 2023, through August 31, 2027, aims to attract more tourists and stimulate the economy, all while maintaining Bhutan’s commitment to sustainable tourism.
«The tourist tax is vital to stepping up the nation's conservation efforts». Dorji Dhradhul Director General of Bhutan's Tourism Department
The SDF was first introduced in 1991 and has been a key part of Bhutan's approach to tourism. The fee helps fund projects related to environmental conservation, cultural preservation, and community development. Children aged 6-12 pay a reduced fee of $50 per day, while those under 6 are exempt from the charge. This reduction in the SDF is part of Bhutan’s broader effort to balance tourism growth with environmental sustainability.
Bhutan is unique in that it is the world’s only carbon-negative country, meaning it absorbs more carbon dioxide than it emits. The government has long prioritized environmental conservation, with policies ensuring that at least 60% of the country remains forested. The SDF is an integral part of Bhutan’s efforts to preserve its natural landscapes and cultural integrity, even as the country opens its doors to more visitors.
Italy: A symbol of overtourism and response measures
On the other side of the globe, Italy—a country facing similar challenges of overtourism, especially in iconic cities like Venice and Rome—has also ramped up its efforts to impose tourism taxes and regulations. The introduction of the tourism tax in Venice, for example, aims to limit the number of visitors and protect the city's cultural and architectural heritage from the pressures of mass tourism.
In Venice, the situation reached a tipping point when the city’s UNESCO World Heritage status was threatened by overtourism. In 2019, a record 23 million tourists visited the city, overwhelming its infrastructure and negatively impacting local residents. The tourism tax in Venice—ranging from €3 to €10 depending on the season—has been designed to limit the number of visitors and protect the delicate ecosystem of the Venetian Lagoon.
Alongside the tourism tax, Venice has also implemented restrictions on cruise ships, with larger vessels no longer allowed to dock near the city center. These measures are part of a broader push to balance the economic benefits of tourism with the need to preserve the city’s unique cultural and historical landscape.
Increasing penalties for tourist misbehavior
As more countries introduce tourism taxes, there is also a growing trend of penalties for misbehavior by tourists. Destinations in both Europe and Asia are adopting stricter rules and fines for tourists who engage in disruptive or disrespectful behavior, such as inappropriate dress codes or damaging the environment.
Italy has also implemented fines for tourists who engage in inappropriate behavior in cultural sites, such as wearing revealing clothes at religious landmarks or engaging in vandalism.
Similarly, countries like Thailand and Indonesia have begun to impose penalties for tourists who disrupt local traditions or disrespect sacred sites. In Bali, tourists have been fined for not respecting local customs and for wearing improper attire while visiting sacred temples.
Such regulations serve as a reminder of the responsibility tourists have in maintaining respect for the places they visit, ensuring that their travel experience doesn't come at the cost of local communities or environments.
World organizations weigh in
International organizations like the United Nations World Tourism Organization (UNWTO) and the World Economic Forum (WEF) have long raised concerns about the sustainability of tourism and its impact on the environment and local communities. The UNWTO advocates for «sustainable tourism practices«, encouraging countries to adopt policies that minimize the carbon footprint of travelers, protect heritage sites, and promote ecotourism.
The World Economic Forum has also discussed the importance of sustainable travel in its reports, highlighting how taxes like the SDF in Bhutan can act as a model for other countries seeking to balance tourism growth with sustainability goals. However, there are also concerns that excessive taxation could deter tourists, particularly in developing countries where tourism is a key economic driver.
A new era of responsible tourism
As countries around the world introduce or adjust tourism taxes, the goal is clear: to create a more responsible and sustainable tourism industry that benefits both visitors and host communities. Bhutan’s recent reduction of the SDF is a move toward achieving that balance, encouraging more tourists to visit while still preserving the country’s unique natural and cultural resources. Similarly, Italy’s ongoing efforts to combat overtourism and its penalties for inappropriate behavior signal a growing recognition of the need to rethink traditional tourism models.
As these policies evolve, the future of tourism will likely depend on how well governments can align economic growth with environmental and cultural preservation. The need for sustainable tourism has never been more urgent, and as the world reopens after the pandemic, the way forward seems clear: responsible travel is the future.
Taxes implemented in some coutries
Africa
Tourist Tax: $6 per person per night.
Purpose: Environmental tax for sustainable tourism.
Tourist Tax: Varies by hotel. Generally around $2-3 per night.
Tourist Tax: $0.80 per person for entry via airports.
Asia
Tourist Tax: $8 per stay.
Payment: Collected at airports for international arrivals.
Tourist Tax: $8 on departure.
Tourist Tax: $9 per international arrival.
Purpose: Conservation initiative.
Tourist Tax: $2 per night for non-citizens in hotels.
Tourist Tax: Varies by state. Goa, for example, has a tax of $1 per night.
Tourist Tax: $200 per day as part of the sustainable tourism fee.
Tourist Tax: $10 for international arrivals.
Americas
Tourist Tax: Varies by state and city. In Houston, it’s a 17% tax on hotel bills.
Tourist Tax: $11 per person for international travelers.
Tourist Tax: $50 for travelers from certain countries.
Sales Tax: 18% (IGV) on purchases. Refunds possible for exports.
Tourist Tax: $20 departure tax (usually included in the flight ticket).
Tourist Tax: $9–$20 for airport departures.
Tourist Tax: $25 departure tax (usually included in flight ticket).
Hotel Tax: 7%-9% of the room rate.
Europe
Tourist Tax: $3 to $10, depending on the season and visit time. Introduced January 2023.
Tourist Tax: $0.22 to $4 per night depending on location (e.g., Paris, Lyon).
Tourist Tax: 5% of the hotel bill (in cities like Frankfurt, Hamburg, Berlin).
Tourist Tax: 3.02% of the hotel bill per person (e.g., Vienna, Salzburg).
Tourist Tax: $2.40 per night, varies by location.
Tourist Tax: Around $4 per person per night during high season.
Tourist Tax: $2 per person per night in cities like Lisbon and Porto
Tourist Tax: $1 per night in Prague, for stays between 1 to 60 days.
Tourist Tax: Based on the hotel star rating. Usually around $4 per room.
Tourist Tax: Around $1.50 per person per night (higher in the summer).
Tourist Tax: $8 per night.
Tourist Tax: $30 per flight ticket. Also a cruise tax of $8 per day.
Tourist Tax: Still under discussion for early 2023, proposed tax for overnight stays.
Tourist Tax: A percentage of the room rate (1% in Bucharest). Additional fees like the «rescue tax» apply in tourist areas.
Tourist Tax: 4% of the hotel bill in Budapest.
Tourist Tax: Around $4 per night, varies by location and hotel category.
Oceania
Tourist Tax: $21 for eco-funding since October 2019.
Tourist Tax: Typically included in hotel rates. Some states charge departure taxes.
Caribbean
Tourist Tax: $15 for airport or port entry.
Tourist Tax: Up to $55 for stays.
Tourist Tax: Similar to Antigua, varies by airport or port of entry.
Tourist Tax: Included in hotel taxes or travel tickets.
Tourist Tax: Typically around $9 per stay.
Tourist Tax: Similar to other Caribbean islands, added to departure fees. Greece: Starting in 2025, Greece plans to increase its tourist tax, now termed the "climate tax," to fund climate change prevention and support local communities, especially in areas prone to wildfires and floods. This is according to The Sun. During the off-season (November to February), the daily tax will rise by 50 cents to €2, and in the high season (April to October), it will be €8 per day. This means a week-long stay could add up to €56 per person. The tax applies to both the mainland and the islands and must be paid separately at the accommodation, not included in the booking price.
Hawaii: Hawaii is according to Condé Nast Traveler considering implementing a tourist tax to help offset the negative effects of «overtourism," enhance residents' quality of life, and protect cultural and historic landmarks. This initiative reflects a broader trend where more cities and countries are introducing tourist taxes, capping the number of visitors at popular sites, limiting cruise ship stops, and even charging fines for bad behavior.
Spain: Started December 2 last year, new regulations in Spain will according to The Scotish Sun require British tourists to provide additional personal information, including home addresses, phone numbers, email addresses, and details on family travel relationships.
These measures, aimed at tackling organized crime, have faced criticism from Spain's leading hotel association for potentially violating privacy, slowing check-ins, and being cumbersome for hotels lacking proper technology. Failure to comply may result in fines up to €30,000. Concurrently, European tourist destinations are implementing various measures to control mass tourism and alleviate local issues, such as increased taxes, entry fees, and restrictions on accommodations and activities.
