Latest news with #touristtax
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Travel + Leisure
17 hours ago
- Travel + Leisure
Greece Just Added New Fees for Travelers Visiting Its Most Popular Islands—What to Know
Cruise passengers in Greece will now pay a 'tourist tax' of up to €20 ($23.41). The new policy was first reported by European media outlets. Exploring popular Greek islands just got more expensive for cruise passengers. That's because the Greek government is now charging a disembarkation fee for travelers heading to the country's islands. Cruise passengers to the Greek islands of Santorini and Mykonos are now responsible for a €20 ($23.41) fee, while cruise travelers to all remaining islands—including Crete and Rhodes—will incur a €5 ($5.85) fee, according to EuroNews. These fees are in effect through Sept. 30. After that, the fee will drop to €12 ($14.07) for Mykonos and Santorini and €3 ($3.52) for all other ports in October and from April 1 through May 31. Several cruise lines either did not respond to requests for comment from Travel + Leisure on how the fee would be paid or directed this reporter to the Cruise Lines International Association (CLIA). A representative for CLIA also did not immediately respond to multiple requests for comment. The Greek islands are among the most popular in the world for cruise passengers with several major cruise lines offering trips there, including Carnival, Celebrity Cruises, Disney Cruise Line, Holland America, Royal Caribbean, MSC Cruises, Norwegian Cruise Line, Princess Cruises, and Virgin Voyages. On Royal Caribbean, for example, travelers can book packages like the "Ultimate Santorini Day" or a kayaking trip to explore the beauty of the island from the water. "Santorini is one of the world's most popular islands, known best for its dramatic scenery, whitewashed villages and fiery volcanic activity," Royal Caribbean wrote about the Greek island. "Here adventure bubbles above the Aegean Sea in the most bold and breathtaking ways." The new fees are being implemented with the hope it may help manage overcrowding, which is especially prevalent on the islands. Last year, more than 7.9 million cruise ship passengers arrived in Greece, according to data from the Hellenic Ports Association, a more than 13% increase compared to 2023. Greece is not alone in imposing fees on cruise ship passengers, a practice that has become somewhat of a new trend. Mexico, for example, implemented a new $5 fee on cruise ship passengers earlier this month. That fee will increase to as much as $21 per passenger by August 2028. Beyond cruises, several European destinations have also implemented tourism fees as a way to manage crowds and drive ancillary revenue. The Italian city of Venice, as an example, started charging as much as €10 ($11.73) per person for day trippers who do not have an overnight reservation.
Yahoo
19 hours ago
- Business
- Yahoo
Angela Rayner battles Rachel Reeves over England tourist tax
Angela Rayner has reportedly called for the introduction of new powers to allow a tourist tax in England. The deputy prime minister is pushing for councils to have the ability to tax tourist hotel stays, despite opposition from Chancellor Rachel Reeves, reported The Telegraph. According to the outlet, Ms Rayner supported the inclusion of the power to charge tourist taxes in the Government's Devolution Bill published earlier this month. Ms Rayner is responsible for the Government's policy on councils as Secretary of the Ministry of Housing, Communities and Local Government (MHCLG). Treasury officials, including Ms Reeves, are understood to have opposed the measure due to concerns for the implications on hospitality businesses. Shadow Chancellor, Mel Stride, told The Telegraph: 'Labour can't help themselves – it's always tax, tax, tax. Whether it's Angela Rayner or Rachel Reeves, the instinct is always the same – more taxes.' She added that a levy on hotel stays would 'hit hospitality hard. Inbound tourism is the UK's third-largest service export, with the UK the seventh most visited country in the world in 2023. A record 43 million foreign visits to the UK are expected this year, in addition to domestic travel. The Labour mayor of Greater Manchester, Andy Burnham, is among local leaders asking to be allowed to charge more tax to visitors. Other mayors have echoed his sentiment. Sadiq Khan, the mayor of London, said: 'A modest overnight accommodation levy, similar to other international cities, would boost our economy, deliver growth and help cement London's reputation as a global tourism and business destination.' In June, the mayors of the Liverpool City Region, Greater Manchester, London, the North East, the West Midlands and West Yorkshire signed a joint letter calling for visitor levies across England. A similar law is already in place in Scotland, passed in 2024, which allows councils to tax overnight accommodation if they wish to do so. A MHCLG spokesman said: 'There are currently no plans to introduce a tourism tax in England. Places can already choose to introduce a levy on overnight stays through the Accommodation Business Improvement District model. 'We are also already empowering local leaders by removing restrictions and allowing the existing Mayoral Council Tax Precept to be spent on areas that drive local growth, such as transport and adult skills.' Bath and Cambridge recently urged the government to allow them to introduce tourist taxes, becoming the latest in a string of English destinations seeking similar levies. In a letter sent to Ms Rayner, the leaders of Bath & North East Somerset Council and Cambridge City Council state that their 'destination' cities are under growing amounts of pressure when it comes to tourism. The councils are seeking a roundtable with the government to explore ways that they can support sustainable tourism in their cities, including the introduction of 'a modest visitor levy' with revenue that will benefit both residents and visitors.
The Independent
19 hours ago
- Business
- The Independent
Angela Rayner battles Rachel Reeves over England tourist tax
Angela Rayner has reportedly called for the introduction of new powers to allow a tourist tax in England. The deputy prime minister is pushing for councils to have the ability to tax tourist hotel stays, despite opposition from Chancellor Rachel Reeves, reported The Telegraph. According to the outlet, Ms Rayner supported the inclusion of the power to charge tourist taxes in the Government's Devolution Bill published earlier this month. Ms Rayner is responsible for the Government's policy on councils as Secretary of the Ministry of Housing, Communities and Local Government (MHCLG). Treasury officials, including Ms Reeves, are understood to have opposed the measure due to concerns for the implications on hospitality businesses. Shadow Chancellor, Mel Stride, told The Telegraph: 'Labour can't help themselves – it's always tax, tax, tax. Whether it's Angela Rayner or Rachel Reeves, the instinct is always the same – more taxes.' She added that a levy on hotel stays would 'hit hospitality hard. Inbound tourism is the UK's third-largest service export, with the UK the seventh most visited country in the world in 2023. A record 43 million foreign visits to the UK are expected this year, in addition to domestic travel. The Labour mayor of Greater Manchester, Andy Burnham, is among local leaders asking to be allowed to charge more tax to visitors. Other mayors have echoed his sentiment. Sadiq Khan, the mayor of London, said: 'A modest overnight accommodation levy, similar to other international cities, would boost our economy, deliver growth and help cement London's reputation as a global tourism and business destination.' In June, the mayors of the Liverpool City Region, Greater Manchester, London, the North East, the West Midlands and West Yorkshire signed a joint letter calling for visitor levies across England. A similar law is already in place in Scotland, passed in 2024, which allows councils to tax overnight accommodation if they wish to do so. A MHCLG spokesman said: 'There are currently no plans to introduce a tourism tax in England. Places can already choose to introduce a levy on overnight stays through the Accommodation Business Improvement District model. 'We are also already empowering local leaders by removing restrictions and allowing the existing Mayoral Council Tax Precept to be spent on areas that drive local growth, such as transport and adult skills.' Bath and Cambridge recently urged the government to allow them to introduce tourist taxes, becoming the latest in a string of English destinations seeking similar levies. In a letter sent to Ms Rayner, the leaders of Bath & North East Somerset Council and Cambridge City Council state that their 'destination' cities are under growing amounts of pressure when it comes to tourism. The councils are seeking a roundtable with the government to explore ways that they can support sustainable tourism in their cities, including the introduction of 'a modest visitor levy' with revenue that will benefit both residents and visitors.
Telegraph
19 hours ago
- Business
- Telegraph
No 10 quashes Rayner's demand for tourism tax
Downing Street has backed Rachel Reeves and rejected Angela Rayner's proposal for a tourist tax. After her dispute with the Chancellor over councils charging visitors to use hotel rooms, the Deputy Prime Minister has been lobbying the Treasury to allow councils and regional mayors to be given new powers to charge 'Barcelona-style' taxes. She has teamed up with Labour mayors, including Sir Sadiq Khan and Andy Burnham, in calling for more 'fiscal devolution' and called it 'deeply disrespectful' to councils that Westminster dictates their budgets. But Ms Reeves is opposed to the idea and has refused to grant any further tax-raising powers, The Telegraph reported on Monday. She strongly objected to the idea of local authorities raising their own money beyond the council tax already charged on properties. Labour sources said the difference in opinion was at the heart of their rift on tax policy, and that Ms Rayner had long called for more devolution from Westminster. Downing Street has now said that there are 'no plans' to introduce tourist taxes, in an apparent rebuke of Ms Rayner's position. 'Places can already choose to introduce a levy on overnight stays through working with their local tourism sector, using the accommodation business improvement district model,' Sir Keir Starmer's official spokesman said on Tuesday. 'Tourism obviously plays an important role in the UK's economy.' 'Transformative' impact Pressed on whether Ms Rayner had been lobbying in favour of the policy, and why her department had discussed it with some local authorities, the spokesman added: 'There are no plans to introduce it. 'Obviously, the Government regularly consults on a wide range of issues.' The issue is the latest in a series of disputes between Ms Rayner and Ms Reeves on tax policy. Earlier this year, The Telegraph revealed a leaked memo written by Ms Rayner suggesting a range of tax hikes to the Treasury. The ideas were rejected by Ms Reeves, who let it be known she is solely responsible for tax policy. Councils and mayoralties have been pushing for tourist levies for some time, believing that they could have a 'transformative' impact on their areas at a relatively low cost to visitors. Manchester and Liverpool have both introduced a flat rate charge of £2 per night on hotel stays within their 'business improvement districts', but are barred from making the tax city-wide by Westminster. Many European cities, including Barcelona, Lisbon and Amsterdam, charge a flat rate or percentage-based tax on hotel stays. The hospitality industry is opposed to a similar system being introduced in the UK, arguing that Britain's 'tourism competitiveness' has been eroded by higher rates of VAT than in many European countries. Ms Reeves is understood to agree with the sector that further taxes on their profits should be kept to a minimum after the hike in employer National Insurance rates in last year's Budget and new workers' rights rules that would be costly to implement. One hotelier in Dorset said a tourism levy would cost them £600,000 a year, and that travellers would go elsewhere to avoid it. But Sir Sadiq told a podcast last month that tourists 'don't mind' paying a 'small levy' in European cities. He said: 'We could spend more money improving the public realm, which would encourage more tourists to come but also improve the quality of life for residents in London.'
Telegraph
20 hours ago
- Business
- Telegraph
Tourists are already turning their backs on Britain. The last thing we need is another tax
If Angela Rayner really is urging Rachel Reeves to allow the roll out of county-wide tourist taxes, she will burn any remaining bridges to peace with Britain's hospitality sector. Consider the firefights hotels, pubs, restaurants and visitor attractions are already confronting. The pandemic gutted the industry. At one stage 1,650,000 employees in the sector were on furlough as businesses ceased trading. Staff left the sector and the country; Brexit had already reduced the availability of skilled workers. Businesses closed – and keep on closing. In 2024 alone, 4,078 hospitality venues shut across the UK – averaging 11 closures a day, according to the latest Hospitality Market Monitor report. The pub sector has been particularly hard hit, with 412 pubs shutting their doors in 2024, bringing the total number of pubs in England and Wales below 39,000 for the first time on record. Nearly a third of all nightclubs have closed since 2020, driven by soaring costs, shifting consumer habits and restrictive licensing policies. VAT on hospitality, which stands at 20 per cent – is higher than almost anywhere in Europe. Germany, for example, still has a special post-Covid rate of 7 per cent. A study by YouGov, commissioned by UKHospitality – which represents 700 companies that operate approximately 130,000 venues across the country – found that 79 per cent of the public were in favour of a reduced rate of VAT for hospitality and tourism. Just 17 per cent supported keeping VAT at current levels. Lower VAT, campaigners claim, keeps prices low, widens choice, supports venues and encourages investment.
