Home » America Travel News » Austria Joins US, Italy, Portugal, Netherlands, France, and Japan in Raising New Tourist Taxes: What it Means for the Tourism Sector
Published on
September 8, 2025
By: Rana Pratap
In 2025, Austria joined a growing list of countries, including the US, Mexico, Italy, Portugal, France, and Japan, in raising its tourist taxes, a move that reflects a global trend aimed at managing the impact of tourism and improving local infrastructure. Austria’s decision to increase its tax from 3.2% to 8.5% on accommodation costs is part of a broader strategy to generate additional revenue for the city’s budget, addressing pressing needs like road improvements, eco-friendly transport, and cultural preservation. As tourism continues to be a vital economic driver for many countries, these increased taxes are seen as necessary to ensure that the benefits of tourism are sustainable, while also addressing the challenges that come with overtourism and rising public costs.
In 2025, Austria joined several other countries like the US, Mexico, Italy, Portugal, France, and Japan in hiking its tourist taxes. This move, though controversial, is seen as necessary for improving infrastructure, supporting sustainable development, and maintaining the quality of life for residents. But what does this increase in tourist taxes mean for tourists and the tourism sector? Let’s take a closer look.
What Exactly Is a Tourist Tax?
A tourist tax, also known as a city tax or visitor levy, is a charge imposed by local governments on visitors staying in hotels, hostels, or other accommodations. It is often calculated as a percentage of the cost of accommodation or as a fixed amount per night.
The money collected from these taxes is typically used to fund local infrastructure, public services, and sustainable tourism projects. For example, it might go towards improving public transport systems, enhancing environmental protections, or maintaining cultural and historical landmarks that attract tourists. However, with the increased focus on sustainability, many governments are now using these funds to ensure that tourism continues to benefit both visitors and residents without overwhelming local resources.
Why Are Countries Raising Tourist Taxes?
Countries are increasing their tourist taxes for a variety of reasons. One of the main drivers is the need to fund public infrastructure and services that are directly or indirectly affected by tourism. As cities and regions become more popular, the pressure on roads, public transport, parks, and healthcare systems grows. These services need constant funding to maintain their quality and sustainability, and tourist taxes help cover some of these costs.
Additionally, many countries are looking to reduce the negative impact of overtourism. Overcrowding can harm local communities, degrade the environment, and put a strain on resources. Higher tourist taxes can help manage the flow of visitors, encouraging tourists to be more mindful of where and when they visit.
Moreover, as economies struggle to recover from the COVID-19 pandemic, countries are exploring ways to increase revenue without raising other taxes. Tourist taxes provide a relatively straightforward way to do so, especially in countries where tourism is a significant economic driver.
Austria Joins the Trend: What’s Changing?
Austria, known for its rich cultural history, stunning architecture, and vibrant tourism industry, is set to raise its tourist tax significantly. Starting December 1, 2025, the tax will jump from 3.2% to 8.5% of the total cost of an overnight stay. This hike is expected to generate an additional €81 million annually for the city’s budget.
This change is part of Austria’s broader strategy to address a €500 million shortfall in the 2025 local budget. The additional revenue from the tourist tax will be used to improve vital public infrastructure, including roads, schools, and green transport options. The city is also using the funds to enhance sustainable tourism initiatives, which aim to preserve Austria’s rich cultural and natural heritage for future generations.
However, this move has sparked concerns within the tourism and hospitality industry. Local hoteliers worry that the increase in tax will make Vienna a less competitive destination, especially during peak seasons when tourists are most likely to visit. Some are concerned that higher costs could deter tourists, which could have a negative impact on hotel bookings, especially around the Advent season, a busy period for tourism in Vienna.
How Does This Compare to Other Countries?
Austria is not the only country making changes to its tourist tax policies. Several other countries have already raised or introduced new tourist taxes, each with its own unique motivations.
United States: Tourist Taxes in Cities like New York and Las Vegas
In the United States, cities like New York and Las Vegas have long had tourist taxes in place, and many have increased them recently. In New York, visitors staying in hotels are now required to pay an additional city tax of 14.75% on the cost of their room, plus a fixed amount of $3.50 per night. This increased tax is part of efforts to fund city services and infrastructure, particularly in popular tourist areas.
Similarly, Las Vegas has raised its tourist taxes to help support tourism-related infrastructure, such as convention centers and entertainment venues. The tax in Las Vegas is around 12% of the total room rate, which is aimed at funding ongoing improvements to the city’s attractions and amenities.
These taxes help cities like New York and Las Vegas maintain their tourism-driven economies while ensuring that the funds are used for sustainable city development.
Italy: Venice’s Tourist Tax
Venice has introduced a new tourist tax that could reach €10 per day for visitors who fail to prepay for their trip. This new fee applies specifically to day-trippers and aims to reduce overcrowding in the city, which has been facing significant challenges from overtourism. The money collected will go towards preserving Venice’s iconic canals, improving waste management, and funding local public services.
Netherlands: Amsterdam’s Tourist Tax Hike
In the Netherlands, Amsterdam has raised its tourist tax to a significant 12.5% of the total accommodation cost, effective in 2025. This move is one of the highest tax rates in Europe, aimed at managing the growing number of visitors while improving local infrastructure. Additionally, a €10 tax has been introduced for cruise passengers docking in the city. The revenue generated from these increased taxes will be used to support the city’s public transport system, cultural preservation, and sustainable tourism initiatives. This is part of Amsterdam’s strategy to balance tourism growth with the well-being of its residents and the environment.
Portugal: Lisbon’s Higher Tax Rates
In Portugal, Lisbon has raised its tourist tax from €2 to €4 per night for hotel guests starting in 2025. This increase is part of an effort to boost the city’s sustainable tourism initiatives and help fund the necessary improvements to public infrastructure, such as roads, public transport, and cultural preservation. The increase is expected to generate additional funds for local services while promoting responsible tourism.
France: Paris and Other Cities Increase Tourist Taxes
Paris has raised its tourist tax by nearly 200%, with new rates ranging from €1.95 per night for 3-star hotels to €15.60 per night for luxury accommodations. This new tax is expected to generate significant revenue, which will be used to improve the city’s public transport system and maintain its world-renowned cultural landmarks. Similarly, other cities across France, such as Nice and Lyon, have also increased their tourist taxes to fund local infrastructure and sustainability projects.
Japan: A Growing Concern Over Overtourism
Japan, particularly popular tourist destinations like Kyoto and Tokyo, has introduced new taxes to combat overtourism. These taxes are aimed at reducing the strain on local infrastructure and promoting sustainable tourism practices. Starting in 2025, visitors to Japan will be required to pay a ¥1,000 (approximately €7) tourist tax per person when leaving the country. The revenue generated will be used to support projects like waste management, eco-friendly transport, and the preservation of historical sites.
This move is part of Japan’s broader effort to ensure that tourism benefits both visitors and local residents, while minimizing negative environmental impacts. It also helps manage the number of visitors to Japan’s most popular sites, promoting a more balanced tourism approach.
What Does This Mean for Tourists?
For tourists, the most immediate impact of the increased taxes will be the higher cost of accommodation. For instance, in Austria, a typical hotel room that costs €200 per night will now see an additional €17 added to the bill. While this may not seem like much for some visitors, it could add up over the course of a longer stay or for families and larger groups.
Tourists who are planning to visit cities with high tourist taxes may also need to factor in these costs when budgeting for their trip. While these taxes are not typically high enough to make a destination unaffordable, they can make a noticeable difference, especially during peak seasons like the Advent period in Vienna or summer in Barcelona.
Another key concern for tourists is the potential for confusion or frustration. Many hotels, especially those in cities with newly implemented tourist taxes, may be unsure whether to absorb the cost themselves or pass it on to guests. Visitors who have already made bookings might find themselves surprised by the new taxes when they check in, which could lead to misunderstandings or dissatisfaction.
The Bigger Picture: Sustainable Tourism and Long-Term Development
While the rise in tourist taxes may seem like a financial burden for visitors, it’s important to consider the broader picture. These taxes are a necessary step in promoting sustainable tourism, which ensures that the growth of the tourism sector doesn’t come at the expense of local communities, the environment, or cultural heritage.
By raising tourist taxes, governments can direct funding towards improving infrastructure, supporting local services, and promoting eco-friendly travel. These investments help to ensure that popular tourist destinations remain viable for future generations, while also improving the quality of life for residents who may feel the effects of mass tourism.
In the long run, these tax increases could lead to a more balanced, sustainable form of tourism that benefits both visitors and locals. It may also encourage more responsible travel choices, such as visiting destinations during off-peak seasons or staying in less crowded areas.
In 2025, Austria joins the US, Mexico, Italy, Portugal, France, and Japan in raising tourist taxes to help fund vital infrastructure improvements and manage the growing pressures of tourism. This increase is aimed at generating additional revenue to support sustainable development, improve local services, and ensure that tourists contribute to the costs of maintaining the cities and regions they visit.
Conclusion: The Future of Tourism in a Changing Landscape
The rise in tourist taxes in countries like Austria, the US, Mexico, Italy, Portugal, France, and Japan marks a shift in how tourism is managed. While these changes might increase costs for visitors, they are crucial for ensuring that tourism continues to benefit local communities, sustain infrastructure, and protect the environment.
For the tourism sector, this shift represents an opportunity to embrace more sustainable practices and offer tourists a more authentic, responsible travel experience. By understanding the reasons behind these tax increases, tourists can appreciate the broader goal of preserving the world’s most beloved destinations while supporting their local economies.
As the global tourism landscape evolves, it is clear that the future of travel will depend on balancing the needs of tourists with the sustainability of the places they visit.
