The concept of a nightly tourist tax is relatively new in the UK, yet it has been a common practice across many European nations for years. Visitors often encounter this tax when checking out of hotels or vacation rentals, leading to surprise at the additional charge beyond their lodging expenses.
Austria was one of the first countries to implement such a tax, introducing it in 1842 for guests at spa and wellness facilities. This model was subsequently adopted by France, Italy, Germany, and Switzerland, aiming to relieve local residents of the financial burden associated with accommodating affluent travelers.
Italy’s approach to the tourist tax has evolved considerably. Under the regime of Benito Mussolini, the tax was expanded to include any city or town recognized as a tourist attraction. The tax was eliminated entirely during the 1990 World Cup to encourage tourism but was reinstated nationally in 2011, with Rome leading the way in reintroducing it.
The nightly charges can vary significantly based on the location and type of accommodation, generally falling between €1 (£0.86) and €10 per person. Notably, guests at luxury hotels in Milan face a higher rate of €12. Additionally, Venice has implemented an entrance fee for day visitors starting in 2024.
This overnight tax has proven to be a substantial revenue source for popular Italian cities. In 2024, Rome generated €222.4 million, followed by Milan at €109.3 million, Florence at €82.9 million, and Venice at €38.9 million, according to Siope, the finance ministry’s financial tracking system.
The funds collected from this tax are intended to enhance local services or preserve historical sites, particularly in areas struggling with the effects of overtourism. However, many municipalities are compelled to allocate these funds towards other budgetary needs.
“Every municipality is eager to implement the tax as they require the funding,” stated Gianluca De Gaetano, manager of the Federalberghi association in Rome. Tourists generally accept these charges, albeit with some reluctance. “They often express dissatisfaction when the quality of services does not meet their expectations, especially after paying a premium for their accommodation,” De Gaetano noted.
