Barcelona. Iceland. New Zealand. Venice. Bali. Amsterdam.
The list of destinations across the globe with tourist taxes set to take effect or already in place continues to grow. Destinations are opting to put these fees in place for a number of reasons.
For some hotspots, addressing overtourism is on the list of factors under consideration when implementing such a tax.
“Overtourism has been simmering for years and it feels like we are at a delicate tipping point,” said Sally Davey, CEO of Travalyst. “It’s about creating a more balanced relationship between travelers and the places they visit — one where everyone benefits.”
“A city can have tourists or a destination can have tourists - but the tourists shouldn't have the destination,” said Doug Lansky, a destination and tourism advisor.
Whether these fees can be an effective strategy to deter people from visiting traditionally popular destinations is yet to be seen - especially after Venice's 29-day trial period generated $2.2 million profit with many days seeing a record number of visitors.
The role of fees in addressing overtourism
The introduction of fees is seen as a “proactive measure” to reduce overtourism by encouraging travelers to be more mindful in their decision-making, Davey said. With fees in place during a peak period, for example, perhaps visitors would opt to avoid those destinations and instead choose a lesser-known - and fee-free - destination. Or maybe they would delay a visit to a popular destination to an off-peak time that may not incur a fee.
By dispersing tourists in this way, Davey said, the use of a fee can also help to decrease traffic and to preserve a destination's natural beauty and cultural heritage while giving tourists the opportunity to see a destination without overcrowding that could lead to a perhaps less-than-ideal experience.
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And the money generated can help the destination long after the visitors depart.
“Usually the funds go directly back into the community, which is vital for supporting conservation projects, improving infrastructure, and ensuring that tourism benefits locals as much as visitors,” Davey said.
“Barcelona’s tourism tax, for example, is intended to help finance the city's public services, including cleaning, public transport and renewable energy in schools.”
Are tourist fees effective?
Experts are divided on fees’ efficacy when it comes to managing overtourism. But in the short term, there is a bit of consensus among some industry leaders: The fees act as a representation of a first step towards redistribution of tourists.
“The introduction of fees has sparked discussions about responsible tourism and the impact of travel on local communities and the environment, which can only be a good thing, but it’s still too early to draw definitive conclusions,” said Davey.
Davey feels optimistic that travelers will start to factor fees into their planning as they become more aware, leading to more conscious decision-making.
“There's definitely an increasing awareness among tourists about these fees, particularly due to media coverage and the growing discourse around sustainable travel,” said Mirko Lalli, CEO and founder of Data Appeal. “However, the extent to which tourists take note varies.”
That level of notice often depends on travelers’ personal situations - maybe if a traveler is more budget-conscious, the fees will have a higher impact. On the flipside, if money is not a concern, then travelers may not be bothered with the fees at all.
The introduction of fees has sparked discussions about responsible tourism and the impact of travel on local communities and the environment, which can only be a good thing, but it’s still too early to draw definitive conclusions.
Sally Davey, Travalyst
“What's encouraging is that we're seeing a growing segment of travelers who are more conscious of their impact and understand the rationale behind these fees,” Lalli said.
Meanwhile, Lansky characterizes meager entry fees as a superficial solution that doesn’t even provide temporary relief.
“It'd be like, if you had a wound on your arm that required 10 [to] 20 stitches, and you took one of those smallest Band-Aids on it that doesn't even stop the bleeding,” said Lansky. “It does nothing ... What it is, though, is someone saying, ‘Oh, well, at least you reached for a Band-Aid.’ That [you’ve] kind of got your head in the right place a little, but you grabbed the wrong size.”
Carlos Cendra, partner and marketing and communications director at Mabrian, a travel intelligence consultancy, said fees can be “short-sighted” when used as unilateral measures to a multifaceted problem. He doesn't think travelers will truly be discouraged to visit because of an entry fee or tax.
“Such measures can do little or nothing to change habits in a meaningful way or at least not to the extent needed to really redistribute carrying capacity," Cendra said.
The crux of the issue: Fees aren’t helpful as a sole solution.
“They need to be part of a broader strategy that includes visitor management, sustainable development and community engagement,” Lalli said.
Cendra said that there is no “silver-bullet” solution to overtourism - something all destinations need to keep in mind, he said.
How could fees become more effective?
That said, there are a few factors that could increase the influence of fees.
First is transparency - communication with tourists is necessary to explain why and how fees are meant to benefit the local communities, according to Cendra.
“The experience shows that locals and visitors alike have little to no real knowledge about the actual positive impact of the collected funds in the community’s welfare, and this also contributes to the sense of satiety that some destinations are reflecting in protests and demonstrations,” Cendra said.
And changes in fee rates could make a difference, too: While fees have been implemented, that doesn’t mean they’ll necessarily stay in place or stay the same - New Zealand, for example, is bumping its International Visitor Conservation and Tourism Levy fee for short-term visitors from NZD$35 to NZD$100 on October 1.
Lansky believes that bumping fees could be beneficial. “They would be great if they were an amount that actually deterred people from going," he said.
But it becomes a balance, too, to keep the fees from becoming prohibitive or exclusionary.
“Continuous monitoring and adjustment of these policies is crucial to ensure they effectively address overtourism without pricing out the cost-conscious traveler,” said Davey.