Italy prepares a sharp increase in the tourism tax and the debate on the overhaul of tourism grows Economy

2024-08-30 17:41:25

The Italian Government is studying the possibility of significantly increasing the tourist tax that tourists have to pay for each day they stay in the city where they are staying. The objective is to help cities with liquidity problems to increase their income and to promote responsible tourism over mass tourism.

The idea, moreover, is that all the city councils in the country that wish to do so, approximately 8,000 in total, can apply this tax to tourists. Currently, only provincial capitals, city councils with the largest number of visitors and municipal associations can charge the tourism tax. The tax, which is paid for each night spent overnight up to a maximum of 15, varies from one city to another and is proportional to the price of the accommodation. For example, in Rome it varies from € 3.5 for campsites to € 10 for a five-star hotel. The Government’s approach is that the tax will increase significantly and will go from 5 euros for stays of less than 100 euros per night, to a maximum of 25 euros for luxury hotels whose price is more more than 750 euros per night.

Another innovation, which is still in the study phase, is that the proceeds will be allocated not only to interventions in the tourism sector, as is the case at present, but also to other activities, such as waste collection and treatment. Street cleaning is a problem especially in big cities like Rome and it is also related to the high influx of tourists, although so far, the cost of this service only depends on the taxes paid by residents.

Although the draft bill is only a Government proposal at the moment, business people in the tourism sector have already engaged Executive Giorgia Meloni. Efforts by the authorities to calm things down were of no avail. The Minister of Tourism, Daniela Santanchè, of the Brothers of Italy, Meloni’s party, has confirmed that it is only an approach that will be discussed in depth in September with tourism industry organizations. “All taxes are not taxes. There is no tourist tax. In a time of over-tourism we want it to be a real help to improve services and so that the tourists who pay for it are more responsible,” wrote the Minister on his social networks.

Federalberghi, the main hotel association, rejects the Government’s proposal completely. “Tourism businessmen do not agree with the proposal to increase the tax further,” he said. And he has objected because the Executive approved a few months ago, in view of the Jubilee to be celebrated in Rome next year, that the tourist tax be increased by two euros and that the possibility was also introduced proceeds would be used to cover costs. garbage collection, although it is not done yet. “In practice, with the new proposal, for a room in a three-star hotel at a price of 100 euros, up to 10 euros will be paid in tax per night. It is as if from one day the weight of the VAT, that is 10%, doubled,” said the hotel association. “The common goal should be to support growth, not slow it down,” the group said in a statement.

Confindustria Alberghi, another of the associations in the sector, has also attacked the Executive’s proposal and pointed out that tourist accommodation cannot be just an ATM for town councils. Furthermore, he accused the Government of betraying the sector. The president of this organization, Maria Carmela Colaiacovo, was “surprised” in statements to the media at the Executive’s plans, which would “blow up months of fruitful dialogue and confrontation with businessmen in the sector,” especially if the tourist tax involved. finally committed to cover the costs of the garbage collection service.

According to a study by the Bank of Italy, in 2023, only around 1,200 municipalities, approximately one in five (22%) of those entitled to a tourism tax, implemented it, perhaps out of fear that it could discourage tourists. Although in 2018, the figure rose to 5,700 municipalities, around 70% of the total. However, tourist tax collection grows every year and last year reached 775 million euros.

Tourism in Italy has suffered a severe downturn following the covid-19 pandemic. 2023 was a record year for the tourism sector, where even pre-pandemic levels were surpassed, with more than 134 million arrivals and 451 million overnight stays.

The overhaul of tourism has created problems for residents in many cities such as Venice or Rome. The debate on the consequences of mass tourism and fair management of high flows of tourists has been simmering in Italy for years. Recently, it has been revived as a result of the protests in Spain in recent months, which continued with particular attention in the transalpine country. Residents argue that historic city centers have lost their traditional character as a result of too much tourism, and most apartments are short-term holiday rentals.

In Rome, several neighborhood associations such as ‘Carteinregola’, ‘Motus’ or the ‘Roman Group for the Regulation of Short-Term Rentals’ came together and submitted their demands to the city council and the central government, with a letter. “Tourism is sustainable when it has limits and it is necessary to work on precise ‘saturation indices’ so that there is a limit to tourist apartments in apartment blocks, as in New York, Barcelona and Florence, to avoid depopulation. the historical centre”, they said. And they asked “to end the search for a large tourist presence, to control the flow of tourism in harmony with the lives of the residents.”

Follow all the information Economy y Business in Facebook y Xor in our seminal newsletter