Italy Considers Significantly Raising Tourism Taxes… “Resolving Overtourism”

by times news cr

Hotel and travel industry protests… “Already high level”
Some public complaints about overtourism are expected to be resolved

ⓒNewsis

The Italian government is reportedly considering raising tourism taxes on tourists amid growing public discontent over overtourism across Europe.

According to the British Financial Times (FT) on the 30th (local time), the Ministry of Tourism led by Minister Daniela Santanche of the ruling Brothers of Italy (FdI) party announced that it plans to hold talks with the relevant industry next month to revise tourism tax regulations.

“We are discussing this issue to improve service in an era of overtourism and to make tax-paying tourists more responsible,” Minister Santanque said in a recent social media post.

Italian cities can charge a tax on tourist accommodations. The tax is said to be between 1 and 5 euros per person per night, depending on the number of stars the hotel or guesthouse has.

However, the government’s latest proposal, seen by the FT, reportedly includes raising the tourism tax cap by €5 per night for rooms priced under €100, €10 per night for rooms priced between €100 and €400, €15 per night for rooms priced between €400 and €750, and €25 per night for rooms priced over €750.

Italy’s hotel and travel industry is fighting back.

“The common goal should be to support growth, not to slow it down,” Federalberghi, an association representing small and medium-sized hotels, said in a statement.

Barbara Casillo, director of Confindustria Alberghi, which represents major hoteliers and global hotel chains, warned that Italy already faces fierce competition from other European destinations and that further increases in tourism taxes, which are already very high, could be damaging.

Marina Ralli, president of Federturismo, an association of various types of tourism companies, also pointed out that many Italian cities are using tourism tax revenues illegally to plug budget holes. Under current Italian law, cities are required to use tourism tax revenues for tourism-related purposes, such as multilingual signage and maintenance of tourist sites.

The debate over the tourist tax comes as public finances face increasing pressure, with Italy’s national debt expected to reach around 140% of GDP this year and annual debt repayment costs rising, the FT noted.

However, he also noted that the government’s proposal to raise the tourist tax could be welcomed by citizens who have recently been struggling to cope with the overwhelming number of tourists. Cities across Europe, including Italy, are known to be suffering from overtourism.

Italy’s tourism industry, which collapsed due to the COVID-19 pandemic, is showing a strong rebound. The Italian tourism industry estimates that the number of foreign tourists last year was 650,000, similar to the pre-COVID-19 level.

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2024-08-31 08:46:40

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