Published on
October 20, 2025
By: Tuhin Sarkar
The Netherlands has now joined the ranks of the US, Mexico, Bahamas, France, and Spain in imposing hefty tourism taxes, making travel to these once affordable destinations significantly costlier. This rise in tourism tax is transforming these countries into less budget-friendly options for vacationers.
As a result, travelers are feeling the financial strain. To avoid these escalating costs, it’s time to explore new cheap nations for vacation. Discover where you can still travel without breaking the bank, and uncover the most affordable destinations that are free from soaring tourism taxes. Keep reading to find out more!
The Netherlands has made headlines in 2025 with a significant rise in its tourism tax, leaving travelers to reconsider their travel plans. Known for its stunning canals, tulips, and vibrant cities like Amsterdam, the Netherlands has long been a popular European destination. However, with these new tourism tax increases, is it still a budget-friendly place to visit?
Higher Costs for Tourists in Amsterdam and Beyond
In 2025, Amsterdam, the capital of the Netherlands, has implemented the highest tourism tax in the country, now set at 12.5% of the accommodation cost. This increase has made staying in the city more expensive, especially for tourists who typically seek affordable accommodations in Europe. On top of that, day tripper taxes have been introduced for cruise passengers visiting Amsterdam. These travelers now face a €14.50 tax, further inflating the cost of a visit to the city. With these hikes, the cost of a short stay in Amsterdam can quickly add up, particularly for those who had budgeted for a more affordable experience.
Other cities in the Netherlands aren’t far behind. For example, Utrecht has raised its tourism tax to €14.96 per night, while Almere charges €12.32 per night. This trend is reflective of the broader price increases across the country’s tourism sector, driven by the growing tourism tax.
Future Increases: VAT on Accommodations Set to Rise
The situation will only get more expensive in 2026. Starting from January 2026, the Netherlands will increase the VAT on overnight accommodations from 9% to 21%. This change will undoubtedly make hotels and other forms of lodging even more expensive, further reducing the affordability of visiting the Netherlands.
Is the Netherlands Still Worth Visiting?
While the Netherlands remains a top destination for many, these rising tourism tax rates are making it less accessible for budget-conscious travelers. With the 12.5% tax on accommodation and other increasing fees, the cost of a trip to Amsterdam and other cities is climbing steadily.
If you’re looking for a budget-friendly European getaway, now may be the time to explore other destinations with lower or no tourism tax. While the Netherlands offers beautiful experiences, it’s becoming clear that the price of visiting is rising sharply, making it a less attractive option for those on a tight budget.
The Rise of Tourism Tax: Why Travel Is Getting More Expensive in the US, Caribbean, and Europe
Traveling the world is an exciting adventure, but in recent years, one major thing has been changing how much we spend: tourism tax. Countries across the US, Caribbean, and Europe have been increasing taxes related to travel. These changes are making vacations, hotel stays, and even flights more expensive. So why is this happening, and what does it mean for you? Let’s dive into the world of tourism tax, the rise in hotel taxes, and why travel has become pricier.
Tourism Tax in the United States
The US is no stranger to taxes, and now, it’s adding another one for tourists. In October 2025, the United States introduced a new Visa Integrity Fee. This is a $250 charge for most people applying for a non-immigrant visa. It may sound small, but it adds to the cost of traveling to the US. Now, the total cost of a visa is $442. This makes it harder for people to travel to the US, especially for those who need a visa.
But that’s not all. There’s also talk about a new climate tax on hotel stays in Hawaii. This tax would be $25, added to your hotel bill. The money would go towards sustainability projects. If this idea becomes law in 2026, tourists will pay more for staying in Hawaii. For tourists already dealing with the costs of flights and accommodation, this added tax could make a vacation in places like Hawaii much more expensive.
The Caribbean: An Increasing Trend in Tourism Tax
In the Caribbean, the rise of tourism tax is becoming a widespread trend. Many islands are introducing or increasing taxes to support their local economy and protect the environment. Let’s look at a few examples:
The Bahamas has raised its departure tax for cruise passengers. Now, passengers will pay between $23 and $30 depending on the cruise. That’s not all; tourism tax now includes a $5 environmental tax and a $2 tourism enhancement tax. These changes are meant to improve the tourist experience and protect the environment.Mexico has also joined the list of Caribbean countries raising taxes on tourists. The country has introduced a $42 fee for cruise passengers. This is just one of the many fees that are making travel to the Caribbean more expensive. This fee adds to the overall cost of a cruise, making it less attractive for budget-conscious tourists.Antigua and Barbuda has been advocating for equal taxation across all types of accommodation. Whether you stay in a hotel, resort, or rent a villa, the tourism tax is now uniform. Short-term rentals are no longer exempt, which could drive up the costs for those looking for budget stays.
The idea behind these increased taxes is to generate funds for sustainability efforts and tourism infrastructure. However, for tourists, it means a higher cost of enjoying the beautiful beaches and culture of the Caribbean.
Europe: A New Wave of Tourism Taxes
Europe has seen the most significant rise in tourism tax in recent years. Cities and countries across the continent are starting to realise that tourism is a double-edged sword. While it brings in money, it also puts pressure on local resources. To manage this, many European countries have raised taxes for tourists.
Spain’s Struggle with Overtourism
One of the most prominent examples is Spain, particularly the region of Catalonia. Barcelona, one of the most popular tourist destinations in Europe, has seen a rise in tourism tax. The city is now charging between €2 and €7 per night, depending on the type of accommodation. This increase in hotel tax is part of an effort to combat the growing issue of overtourism. The money raised from the tax will go towards building more affordable housing and providing better services for locals who are affected by the high number of visitors.
Many tourists are frustrated by this increase, as it adds to their costs when visiting Spain. If you plan to visit Barcelona, expect to pay more on top of your accommodation fees. This growing trend of tourism tax is a sign of the times, where tourists are expected to pay more to help balance the costs of tourism with the needs of the local population.
Venice: The Tax That Will Change Your Trip
Another iconic European destination, Venice, has also raised its tourism tax. The city now charges a fee of €5-10 for day-trippers. This fee is designed to control the influx of tourists, especially on high-traffic days. The money will be used to protect Venice’s delicate architecture and infrastructure. Venice has been battling overtourism for years, and this tax is one of the measures taken to protect the city from further damage.
The Venetian government has announced that this tax will apply to 54 busy days in the year. Previously, the tax applied only to 29 days. If you’re planning a trip to Venice, this means you’ll pay extra for a day visit, which could affect your budget for the entire trip.
Italy and Portugal: A Rise in Local Taxes
Both Italy and Portugal have seen a rise in tourism tax. In Lisbon and Porto, the tourism tax has doubled. The cities now charge €4 per night, which may not sound like much, but when added to accommodation costs, it can make a difference. The revenue from this tax is used to fund local projects, including the preservation of historical sites and improving city infrastructure. This rise in tourism tax is part of a broader trend across Europe.
In Madeira, a popular destination in Portugal, tourists are also being charged a new €3 hiking fee to support environmental preservation. And in Évora, a city in southern Portugal, a new tourist tax has been introduced to help manage visitor numbers and protect the city’s heritage.
France: Higher Costs for Air Travel
In France, travelers are also feeling the impact of increased tourism tax. The government has more than doubled its “solidarity tax” on airline tickets. For short-haul flights, the tax is now €7.40, while for long-haul flights, it can be as high as €40. This tax is designed to fund international aid programs and is expected to raise around €1 billion annually. While it’s a good cause, it makes flights to France more expensive for tourists, particularly those travelling long distances. The rise in flight costs could deter many travelers from booking their next vacation in France, as the extra tax adds significantly to the overall price of a trip.
The Impact of the Rise in Tourism Tax
The rise in tourism tax across the US, Caribbean, and Europe is a sign of changing priorities in the global travel industry. As destinations face the challenges of overtourism, they are looking for ways to manage visitor numbers while ensuring that the local economy benefits from tourism. However, this comes at a cost. For tourists, these taxes make travel more expensive and could discourage some from visiting certain destinations.
Whether it’s the Visa Integrity Fee in the US, departure taxes in the Caribbean, or increased hotel taxes in Europe, travelers need to be prepared for higher costs. These taxes are often added to hotel bills or flight costs, making the overall expense of travel more significant. If you’re planning a vacation to any of these destinations, it’s essential to budget for these additional costs.
What Can Travelers Do?
As tourism taxes rise across the globe, travelers will need to be more strategic in their planning. Here are a few tips:
Research the destination’s taxes: Before booking your trip, check if there are any new tourism taxes in the country you’re visiting. This will help you estimate your costs more accurately.Consider alternatives: If a destination becomes too expensive due to taxes, look for alternatives that may offer similar experiences without the high costs.Travel during off-peak times: Visiting destinations during the off-peak season can help you avoid crowds and may reduce the impact of certain tourism taxes.Factor in all costs: Don’t just look at the cost of flights and accommodation. Remember to include any extra taxes when calculating your trip’s total cost.
Cheap Travel Destinations in 2025 Explore Countries with No Tourism TaxCheap Travel Destinations in 2025: Explore Countries with No Tourism Tax
Traveling the world doesn’t always have to be expensive. In 2025, several countries still offer cheap travel experiences with little to no tourism tax. These destinations allow you to explore beautiful places without the added cost of tourist fees. Let’s take a look at some of the best countries where you can enjoy a budget-friendly vacation with no tax on your travel.
Bulgaria: Europe’s Hidden Gem with No Tax
Bulgaria is one of the most affordable destinations in Europe. While some cities in Bulgaria charge a small tourism tax, many rural areas and small towns do not impose any additional charges. This makes Bulgaria a perfect choice for travelers looking for cheap travel. You can explore its rich history, beautiful mountains, and charming towns without worrying about added taxes. Most visitors enjoy an easy and affordable experience while traveling across the country.
Mexico: No Extra Costs, Just Beautiful Beaches
Mexico is another excellent destination for those seeking cheap travel. From the beautiful beaches of Cancun to the bustling streets of Mexico City, Mexico offers a range of affordable experiences. While some popular tourist spots might have small fees, the country does not impose a tourism tax nationwide. This makes it a great option for tourists who want to enjoy authentic food, rich culture, and stunning landscapes without extra fees. Many regions in Mexico have no tax at all, making it even easier to stick to your travel budget.
Peru: Affordable Adventures Without the Tax Burden
Peru is a dream destination for history lovers and adventure seekers. Famous for the ancient Machu Picchu, Peru offers incredible experiences without imposing a tourism tax across the country. While some sites may have an entrance fee, there is no overarching tourism tax. You can explore the Andes mountains, visit ancient ruins, and enjoy the unique culture of Peru without paying extra taxes. This makes Peru an affordable choice for budget travelers.
Philippines: Explore the Islands with No Tax Hassles
The Philippines is known for its pristine beaches and beautiful islands. With over 7,000 islands to choose from, the Philippines offers great value for those looking for a tropical escape. While some islands charge small environmental or entry fees, there is no nationwide tourism tax. You can visit places like Palawan, Cebu, and Siargao without worrying about taxes eating into your budget. This makes the Philippines an excellent destination for affordable and stress-free travel.
Maldives: Affordable Getaways Without the Tourism Tax
The Maldives may sound like an expensive destination, but it can be surprisingly affordable for budget-conscious travelers. Many luxury resorts in the Maldives are pricey, but there are also budget-friendly guesthouses on local islands that do not charge a tourism tax. This means you can experience the beauty of the Maldives without the heavy costs. Whether you want to relax on the beach or dive into crystal-clear waters, the Maldives offers a unique experience without the added expense of tourism taxes.
over tourismMorocco: Culture and Adventure Without Extra Costs
Morocco offers a mix of rich culture, history, and natural beauty, all at an affordable price. The country does not charge a national tourism tax, and while some cities may have small fees for certain attractions, it’s generally very inexpensive to visit. You can explore the vibrant souks of Marrakech, ride camels in the Sahara Desert, and enjoy the culture of ancient cities without worrying about taxes. Morocco is a great choice for those looking for cheap travel with no extra fees.
The rise of tourism tax is a growing trend across the US, Caribbean, and Europe, and it’s making travel more expensive. Whether it’s the new Visa Integrity Fee in the US, departure taxes in the Caribbean, or increased hotel taxes in Europe, these changes are impacting travelers worldwide. While the extra costs are designed to support local economies and protect the environment, they can make a vacation much more expensive than expected. By staying informed and planning ahead, you can manage the impact of these rising taxes and continue to enjoy travel without breaking the bank.
