Italy proposes new €25 tourist tax to combat overcrowding

Italy is considering a significant increase in its tourist tax, potentially raising the levy to as much as €25 (£21.30) per night for visitors staying in the country’s most luxurious accommodations.

This proposal is part of a broader strategy to manage overtourism and provide financial support to cities struggling with the pressures of high tourist volumes, particularly in iconic destinations like Florence, Rome and Venice.

The proposed tax, which could be introduced as early as next year, targets high-end hotel stays. According to the plan, visitors staying in rooms costing over €750 (£638) per night could face the maximum tax of €25. Conversely, those opting for more affordable accommodations could see a lower tax, with rates starting at €5 (£4.26) for rooms priced under €100 (£85). Intermediate rates include a €10 (£8.51) tax for rooms costing between €100 (£85) and €400 (£340) and a €15 (£12.77) tax for those between €400 (£340) and €750 (£638).

What Italian officials have said about the proposed tourist tax

Italian officials argue that the increased tax will not only help manage the flow of tourists but also provide much-needed funding for essential services, such as waste management, in cities overwhelmed by the influx of visitors. Italy welcomed nearly 60 million international tourists in 2023 alone, a figure that has placed considerable strain on infrastructure and local resources.

Daniela Santanchè, Italy’s Minister of Tourism, emphasised the need for responsible tourism.

“In times of over-tourism, we are debating this so that it really helps improve services and makes tourists who pay it more responsible”, she stated.

However, the proposal has sparked concern within Italy’s tourism industry. Maria Carmela Colaiacovo, President of Confindustria Alberghi, a prominent Italian hotel association, acknowledged the sector’s crucial role in Italy’s economic recovery post-COVID-19 but cautioned against policies that could harm the competitiveness of Italian destinations.

“We cannot be a mere ATM for municipalities”, she warned, highlighting the delicate balance between generating revenue and maintaining Italy’s appeal as a top travel destination.

Barbara Casillo, Director of the same association, echoed these concerns, warning that high taxes could deter potential visitors. She urged the government to “be very careful” in implementing the new levy to avoid driving tourists to other countries with lower fees.

This potential tax increase is part of a broader trend across Europe, where popular tourist destinations are introducing measures to address the negative impacts of overtourism. For instance, Venice, a city synonymous with tourism, recently trialled a €5 (£4.26) admission fee for day-trippers entering its historic centre. While the move sparked debate, it highlights the growing need for innovative solutions to manage tourism sustainably.