Italy Mulls €25 Tourist Tax to Tackle Overtourism

Italy is contemplating a significant increase in tourist taxes as part of its strategy to address the challenges of over-tourism affecting cities across the country.

This proposed tax hike has sparked considerable backlash within the tourism industry, with concerns that it could negatively impact the sector.

According to La Repubblica, Italian hotel and tourism associations have expressed strong opposition to the proposal.

They argue that raising the nightly tax to €25 could deter tourists and potentially lead to a decline in the sector, particularly as Italy faces stiff competition from other European destinations.

Barbara Casillo, head of the Hotel Association, criticized the proposal, stating that scaring off travelers with high taxes would not serve Italy well.

She emphasized that such measures could undermine the country's reputation and attractiveness as a tourist destination.

In response, Daniela Santanchè, Italy's Minister of Tourism from the Brothers of Italy party led by Prime Minister Giorgia Meloni, mentioned that discussions with industry organizations are planned for September to further explore the proposal.

The Italian tourism authority maintains that the proposed tax adjustments are intended to improve service quality and care, arguing that the increased fees are not solely a tax but part of an effort to enhance overall tourism infrastructure.

The government's proposal includes a tiered tax structure: €5 per night for rooms costing less than €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 exceeding €750.

Currently, Italian cities apply varying tourist taxes, ranging from €1 to €5 per person per night, depending on the hotel's classification or rental type.

According to the Bank of Italy, tourist tax revenues reached €775 million in 2023. The proposed changes aim to expand these rates, with some cities like Venice already implementing special entry fees for visits to historical centers.