Hawaii is the latest destination to consider taxing visitors to help address the effects of climate change and overtourism, two issues that are particularly front of mind in the Aloha State following the devastating Lahaina fire.
The so-called climate tax is part of a bill first introduced in January that could pass as early as this spring. If approved, visitors to Hawaii would be charged a $25 flat fee during check-in at hotels and short-term rentals. The money would go onto support sustainability initiatives in the state including wildfire and flood prevention, coral reef restoration, emergency water supplies, green infrastructure, and coastal restoration.
The concept of tourist tax isn’t a new one. They have long been the norm for many countries in Europe such as Greece, Spain, and Germany, and hotel tax is standard across many destinations, including US states. The impact of the pandemic on the travel industry was severe—hotels, restaurants and hospitality venues closed, people that relied on tourism for their livelihoods suddenly faced huge losses, and money that the government relied on for development and maintenance was depleted. As a result, many countries have decided to implement a tourist tax to help support local needs. Below, we take a look at what exactly tourist tax is, and which places are introducing the measure for 2024.
What is tourist tax?
Originally, tourist tax was introduced by certain governments with the aim of tempering overtourism and generating income from large numbers of travelers entering the destination. Bhutan, for example, has asked tourists to pay a significant sum of money to enter since it opened to international visitors in 1974. The country uses the tax (called the Daily Sustainable Development Fee) in an attempt to preserve the country’s natural, undisturbed beauty and to protect traditional Buddhist culture. Barcelona, meanwhile, uses the city’s tourist tax to fund local construction and development projects. Most tourist taxes are added onto the cost of your accommodation in the form of a percent or flat fee.
Which destinations will begin imposing tourist taxes in 2024?
- This January, Iceland reintroduced its tourist tax following a pandemic hiatus.
- The Indonesian government began taxing travelers visiting Bali from February 14, 2024.
- In 2024, the UK is imposing a new system called an Electronic Travel Authorization (ETA), whereby visitors from the US, Europe, Australia, and Canada will be required to apply for permission and pay to enter the country.
- Pro tip: Next year, the EU will begin implementing a new tourist visa, whereby non-EU citizens traveling from outside the Schengen zone will need to fill out a €7 (around $7.57) application to enter the country.
