First, it was cities like Barcelona and Venice that flagged a tourist tax in a bid to regulate visitor numbers.
Now, other cities and countries are eyeing a similar tax as a means
of funding their NTOs post-pandemic and launching sustainability
initiatives.
Destinations in Asia are jumping onboard with Thailand and Indonesia
among those who see a tourist tax as a means of producing extra revenue
and improving the quality of international visitor arrivals without
having an overall impact on tourism receipts.
Of course, tourism taxes are not new. In Europe they just come in
different forms. Countries such as Belgium and Austria have an
accommodation tax. Germany has what is called a "culture tax", as well
as a bed tax, while the Netherlands has a land tourist tax and a water
tourist tax.
A traveller from Southeast Asia planning a grand tour of Europe would
need to budget for some form of tourist tax in almost every country
visited.
In the UK, the government has disguised what is effectively a tourist
tax by removing 20% tax refunds on foreign visitors' shopping. Luxury
goods retailers such as Burberry, Fortnum Mason and Jimmy Choo are
currently part of a campaign – along with British Airways and luxury
hotels Como, Rosewood and Dorchester - to have the tax refund restored.
Figures from Visit Britain show that shopping has traditionally been one of the most popular reasons cited for visiting the UK.
And it’s not only bed taxes that are adding to the costs of travel.
By November 2023, non-EU citizens, and other travellers from outside the
Schengen zone, will need to fill out a €7 (US$7.7) application to
enter. Those under 18 or over 70 will not have to pay the fee.
In Asia, proposed tourist taxes are still in the hands of
legislators. Indonesia’s coordinating maritime affairs and investment
minister, Luhut Pandjaitan, has argued that Bali’s appeal as a “cheap”
destination does not encourage “quality” tourists. Even so, a decision
to implement a tourist tax is still proving well, taxing, for government
ministers.
Much the same in Thailand where a proposed tourism tax of 300 baht
(US$9) has been delayed from its original implementation date of 1 June
2023 due to an inability to prepare the system in time. September this
year is being touted as a new date for the tax.
The Tourism Authority of Thailand says part of the fee will “be used
to take care of tourists” who do not have accident insurance, and to
help finance further development of tourist attractions, such as the
Grand Palace in Bangkok.
Thailand’s proposed entry fee is separate from the departure tax included in airfares.
Not to be left out, the island of Jeju, which attempted to implement
an entry fee in 2012, has gone back to the Korean national government
with a proposal to levy a tourism tax that would provide a larger budget
to protect the island’s natural resources from the impact of visitors.
Whatever
taxes are implemented, the bottom line is this: as part of a luxury
resort holiday in Asia, any extra government fees will be a very small
part of the overall cost.
And if the revenue from tourism taxes is used to help an industry crippled by Covid, then no one should complain.