Travellers are facing rising costs to go on holiday as major cities aim to combat local complaints about overtourism.
Holiday hotspots such as Barcelona and Venice have introduced extra charges for tourists in an effort to boost local infrastructure and address issues of overcrowding.
This has given rise to the tourist tax, which is being added to hotel costs or entrance fees to major sites.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Barcelona’s tourist tax for five-star hotel guests has increased to €6.75 per night, totalling €47.25 per week or £38.
This is similar to Amsterdam, which adds a 12.5% charge for hotels, camping and holiday rentals to support local infrastructure and fund cultural amenities.
Venice has introduced a €5 day-trip tax between April and July – €10 if you book within four days – in an effort to encourage people to spread out their stay. There is no charge if you are staying overnight in Venice.
Seville is also planning to charge for entry to Plaza de Espana, while Edinburgh is even planning a visitor levy for overnight guests worth 5% from July 2026.
These costs may seem small but could add up once you have already paid for travel.
This is no surprise for many travel experts.
Cindy Scott, founder of travel guide Cinders Travels, said: “Tourist taxes keep climbing in major cities, and honestly, no one should be shocked. Barcelona, Venice, Edinburgh – they’ve been drowning in tourists for years.
“Overcrowding strains public transport, streets become impassable, and locals get fed up.
“Governments see extra fees as a way to take back control, funding infrastructure and discouraging the never-ending waves of visitors. But for travellers, it boils down to one thing—more money out of pocket and a decision to make.”
Hospitality expert Steven Hesketh, known as ‘The Hospitality Hero‘, suggests the extra charge is actually a great way to save the sector with just a few extra pounds per night.
He said: “Using the word ‘tax’, is confusing matters, as this is not a tax from the government – far from it – it’s a visitor charge/levy and it’s about operators taking matters into their own hands to raise the funds needed.”
So should you pay the tourist tax or look elsewhere? Here is what to consider.
Check before you travel
Many holidaymakers may not find out about the extra charges until they come to pay their hotel or accommodation bill so it is important to check before you depart and even before you pay.
Lori Delaney, marketing manager at Trtl Travel, said: “Some websites may include the tax in the advertised price, while others will add it on when you pay. Checking the fine print on your booking confirmation can usually be a surefire way to tell which approach your accommodation is opting for.”
Andy Whitehead, chief financial officer for property management system eviivo, said travellers must ensure they are booking with a reputable establishment.
He said: “If you’re planning a stay for seven nights in Barcelona and there is no mention of a tourist tax on your booking confirmation, I would strongly suggest double-checking whether one will be payable upon arrival at the hotel. No one wants to kick off a city break with a surprise bill!
“Fortunately, the best establishments are already using systems that allow them to be upfront with customers when it comes to things like local tourist taxes. In short, if your heart is set on a stress-free break in one of Europe’s most visited tourism destinations, don’t be tempted by hotel rates that seem too good to be true – because they probably are.”
Pay the price
If you really want to visit a destination, will a few extra pounds per night really put you off, especially if it is going back into supporting the local economy and infrastructure?
Scott added: “For travellers, it’s a game of strategy. Some will absorb the cost, chalking it up as part of the experience – like entrance fees at museums or guided tours.
“Others will start looking elsewhere, searching for places where their budget stretches further. There’s no universal answer. Some people will always pay the price to see the icons, no matter how steep. Others will pivot, hunting down less-hyped spots that haven’t yet jumped on the tax bandwagon.”
Alternative travel destinations
A popular trend among travellers is looking for dupes or alternative destinations to big cities that are similar but often cheaper.
Rachel Mumford, travel expert at comparison website Kayak, said: “With additional fees in play for popular destinations, it’s likely we’ll see this influence future travel decisions and see a shift toward lesser-known places without the premium price tag – challenging today’s top travel spots.
Kayak has a Best Time to Travel tool where you enter your destination and it will tell you the optimal month to fly, helping you to avoid the crowds and high prices.
Some travellers may even change how long they visit a destination for.
Scott added: “When Amsterdam raised its visitor tax, people didn’t stop coming, but they started cutting their stays shorter. Venice’s new rule could send travellers toward Italy’s quieter gems, where the charm is just as strong but the costs are lower. Over time, some cities will gain from this redirection.
“Someone who balks at Barcelona’s taxes might wander into Girona instead. A traveller dodging Venice’s surcharge might end up falling for Bologna.”
But Tatyana Tsukanova, research associate and visiting professor at the EHL Hospitality Business School, warns there is a downside if everyone flocks to alternative destinations, adding: “The introduction of a tourist tax can also create a domino effect: tourists may seek quieter alternative destinations rather than overcrowded ‘must-see’ places. While these quieter places may initially benefit from the redirected tourist traffic, they could eventually face the same level of overtourism if not prepared.
“Tourism taxes should therefore be carefully calibrated before being introduced to avoid harming the industry. For example, if a tax rate is too high, it will have a negative impact on tourism revenues. The challenge is to find the optimal balance between generating local revenue without overburdening tourists while ensuring sustainability.”
