Tourism Taxes

The Balearics

The Sustainable Tourism Tax in the Balearic islands, introduced in July 2016, has been increased during the summer months as of 1st May 2018. The winter rates will remain unchanged. Please don’t panic as we have everything you need to know below:

What is  the Sustainable Tourism Tax?
Areas such as Ibiza, Majorca or Menorca are becoming more and more popular with holidaymakers, as they all frequently hop on a plane these Islands for some sunshine. Due to these areas being so popular, the volume of planes over the Balearic Islands is high and sadly this has an effect on the environment.

The Balearic Islands want to see their tourism continue to thrive, but in a responsible way. So, the Sustainable Tourism Tax has been brought about to contribute to the preservation of the islands and counteract any negative damage tourism may bring. The tax will apply to both locals and foreigners who choose to stay in tourist accommodation such as hotels, holiday homes and cruise ships.

Will it apply to me?

  • If you’re over 16 and book a holiday anywhere in the Balearics after 1st May 2018, the charge will apply to you. Children under the age of 16 are exempt from the tax
  • The amount of tax you’ll need to pay will depend upon the category of the accommodation you are staying in, when you stay and the number of adults.
  • Long term holiday makers will have a 50 % discount on the tax starting from the ninth day of their stay in the same accommodation.
  • Cruise passengers berthed in the Balearic Islands will also be expected to pay the sustainable tourism tax, unless the Balearic Islands is the home port of the ship.

Price breakdown: 

types of establishments

€/day* (May-October)

€/day* (November -April)

5-star, 5-star luxury and 4-star superior hotels / 4-keys superior and 4-keys tourist apartments

4

1

4-star and 3-star superior hotels / 3-keys superior tourist apartments

3

0.75

1-star/-key, 2-star/-key and 3-star/-key hotels and tourist apartments 

2

0.5

Holiday rentals (fincas, apartments, houses) and other tourist establishments 

2

0.5

Rural hotels, agrotourism accommodation and inland tourism accommodation

2

0.5

Hostels, lodgings, guest houses, boarding houses, tourist camps or campsites, shelters and refuges 

1

0.25

Tourist Cruise Liners

2

0.5

 

Note: the tax applies to all holiday bookings, regardless of booking agent.

How is the revenue generated being spent?
The funds are being used to compensate for the environmental impact of tourism to the Balearics, such as:

  • Protection, preservation and recovery of the natural, rural and marine environment.
  • Projects to preserve the local heritage and environment, and substantially reduce the negative impact of tourism to create a more long-term and sustainable tourism destination.
  • Projects include water management, the protection and preservation of landscapes and the preservation of ecologically valuable areas and/or key cultural heritage sites.
  • In 2017, the Sustainable Tourism Tax raised a total of 64 million euros which has been invested into 70 projects, 62 of which are new and eight are ongoing (from 2016).
 

Greece

The Greek government has recently approved a new law (Law 4389 / 27-05-2016 article 53 Accommodation Taxation) that will be in force and effective as of 01.01.2018 regarding a tax for all Tourists staying in any kind of Hotel, Apartment, Villa, etc. in any destination in Greece and as a subject of this, will affect the client visiting the property in terms of payment upon Checkout.

Tax will be settled individually by the client at check-in/checkout time, therefore by law it cannot be included in the rates since the amount of the Tax will not be taxable by VAT.

Hotels will issue the invoice upon client’s departure and the client is required to pay upon arrival/check out.

It is possible, in order to avoid unexpected departures or mistakes, that hoteliers will request payment at check-in time since they are responsible for recollection and ulterior liquidation with the Greek authorities.

The taxation is as follows:

In Properties registered and licensed as Hotels, the daily taxation will be per room (and not per person) on a daily basis as below:

  • 1-2 Stars 0,50 €
  • 3 Stars 1,50 €
  • 4 Stars 3,00 €
  • 5 Stars 4,00 €

In registered Apartments, furnished rooms etc. The daily taxation will be per room (and not per person) on a daily basis as below:

  • 1-2 Keys 0,25 €
  • 3 Keys 0,50 €
  • 4 Keys 1,00 €

 

Malta

A new Eco-tax is being introduced by Malta from 1 April 2016.  This tax will be used to improve the tourism areas of Malta.  It will be for a new public private partnership scheme, which will include the Malta Hotels and Restaurants Association (MHRA) and the government.  It has been explained that the government will reimburse the fund which it uses to refurbish and maintain public spaces in tourist areas.

We understand this tax is likely to be 50c per visitor per night, up to a maximum of 5 Euros per stay and will apply to customers 18 years and over only and will be collected by the hotel/accommodation.

More information about the tax can be found on this article and also on this discussion forum on TripAdvisor.

 

The USA

When visiting the USA in some states, special taxes are often applied to tourist services such as hotel room rates, car rentals, and admission tickets. These special taxes can be substantial; in the case of a hotel room, multiple taxes can add as much as 25-30% to the listed rate of a room. These special taxes are paid by all tourists, including U.S. citizens, and not only by foreign tourists.
Hotel room taxes can be in the form of a percentage tax added, a flat rate per night, or both. One U.S. city has an 18% tax imposed on the room rate together with an additional $10 a night flat tax. If the hotel lists a room rate as $100, the added tax would be $18 plus $10, for a total charge of $128 per night. This does not even consider a service charge that is sometimes levied by the hotel. When making a reservation or developing a budget for your trip, be sure to consider taxes.
Most taxes are included in your room rates however, in some states, tax may still be applied locally. This all depends on the supplier and the area; in most cases a resort tax has to be paid locally. Its best to ask if your room includes this rate at the time of booking or before you travel.

 

Barbados

A new mandatory Room Levy tax has been implemented in Barbados, as of 1st July 2018. This is to support future improvements on the island. This levy will be applied to all bedrooms per night on the island. The Ministry of Tourism and International Transport stated that the levy, which is to be paid by guests, will be applied at the following rates:

Villa Sub Sector and all other Vacation Rental Properties however defined – 2.5% of the nightly rate, capped at USD $10.00

 Luxury Class Hotels – USD $10.00

“A” Class Hotels – USD $5.00

“B” Class Hotels, Apartments and Guest Houses – USD $2.50.

The levy will be charged by the hotel and will be collected at check out. You can pay either with cash or card.

 

Mexico

The Mexican Government has decided to, with effect from 1st January 2017, introduce a tourism tax on travellers visiting the resorts of Cancun and Riviera Maya. The tax is 20 Mexican Pesos, per room, per night. This is equivalent to $1 USD. The tax is paid locally at your hotel upon check out and can be paid in either of the aforementioned currencies.

 

 

If you have any questions about any of these tourism taxes, please call your local branch on 0800 167 0232.

Holiday With Us can not be held responsible for taxes that are paid locally; it is the client’s responsibility to ensure they understand this before they arrive in their destination.