Tourism across Europe is entering a major shift as several top destinations announce new hotel taxes and higher night stay charges. Spain, Greece, Italy, Portugal and France are aligning with a wider European trend to curb over-tourism, manage environmental pressure and generate revenue for sustainable projects. For travelers, especially those planning summer holidays, these rising levies will result in noticeably higher costs.
Spain Pushes Major Tax Hikes in the Balearic Islands
Spain is leading the current wave of reforms with a renewed focus on managing visitor numbers in its most popular regions. The Balearic Islands—Majorca, Menorca, Ibiza and Formentera—are preparing for steep increases to existing accommodation taxes.
The current rate ranges between €1 and €4 per person per night, depending on the category of stay. New proposals would raise this rate sharply in peak season, potentially reaching €15 per night for luxury properties. A two-week stay for a family during July or August could rise by several hundred euros, making the islands one of Europe’s costliest holiday destinations.
Authorities say the goal is to protect local communities and ease housing pressure. Palma has already halted new short-term rental licenses to prioritise year-round residents. These measures form part of the region’s strategy to balance tourism with long-term sustainability.
Greece Introduces Higher Levies in Popular Holiday Cities
Greece, another Mediterranean favourite, is following a similar path. Starting in 2025, major destinations such as Athens, Mykonos and Santorini will apply higher hotel taxes based on the luxury level of accommodation.
The new “resilience fee,” part of Greece’s wider climate-response measures, will raise rates during peak periods, with luxury stays facing increases of around €10 per night or more. Greek officials emphasise that these funds will support disaster response, environmental protection and upgrades to local services.
The move comes as Greek islands continue to experience record-breaking visitor numbers. Summer congestion, strain on water supplies and overcrowded heritage sites have prompted calls for firm action.
Italy Raises Tourist Taxes to Protect Heritage Cities
Italy, home to some of the world’s most visited cultural landmarks, is also adopting higher hotel taxes to support sustainable tourism. Major cities including Rome, Venice and Florence are set to expand or raise existing levies in 2025.
Luxury hotels may see nightly tax increases surpassing €10, while mid-range stays will face smaller but still significant rises. The Italian government says the revenue will fund heritage preservation, crowd management systems and environmental protection.
Venice recently introduced a day-visitor fee to reduce the overwhelming pressure from cruise ships and short-term tourism. The expanded hotel tax will complement this approach, helping the city manage rising demand.
Portugal Doubles Lisbon’s Night Stay Tax
Portugal’s vibrant capital, Lisbon, is also taking action. The city plans to double its municipal tourist tax from €2 to €4 per night. Though smaller than those in other EU nations, the change reflects growing pressure on local housing and urban services.
Lisbon’s visitor numbers have grown sharply, particularly in summer months. The higher levy will support infrastructure upgrades, cultural preservation projects and environmental initiatives. Officials hope it will help regulate tourist flows while keeping the city accessible for residents.
France Adopts Tiered Hotel Tax Structure
France is also reshaping its tourism policies with a tiered hotel tax system set to expand in 2025. Paris, one of the most visited cities in the world, is preparing increases that could push taxes above €10 per night for premium rooms.
Other major cities such as Marseille, Nice and Lyon are expected to follow. The aim is to ensure that tourism revenue contributes directly to maintaining museums, historic districts and public transport—services that face heavy demand during high season.
Budget travelers may feel a smaller impact due to lower rates for simple accommodations, but the overall cost of visiting France will rise.
Spain Adds More Regional Taxes Beyond the Islands
Alongside the Balearics, other Spanish regions are adopting new levies. Santiago de Compostela, a UNESCO-listed pilgrimage hub, will introduce nightly charges between €1 and €2.50 from September 2025.
These funds will help manage the massive footfall linked to the Camino de Santiago routes, which have grown steadily over the past decade. Local authorities plan to use the revenue for city upkeep, crowd management and cultural preservation.
A Shared European Strategy for Sustainable Tourism
The simultaneous shift across multiple countries reflects a broader transformation in European tourism policy. Over-tourism has become a central concern, with heritage sites, beaches and island ecosystems under increasing strain.
Higher hotel taxes allow governments to reinvest in public services, protect natural areas, and improve visitor experience. They also encourage more responsible travel patterns by spreading tourism away from the peak months and oversaturated districts.
What Travellers Should Expect
Holidaymakers planning visits to Europe in 2025 and beyond should anticipate higher accommodation costs. Summer stays in top destinations will see the biggest increases. Families and long-stay travelers will feel the impact most strongly, with some budgets rising by several hundred euros.
Despite the added expense, these measures aim to protect the destinations that millions of visitors come to enjoy each year. By funding infrastructure, sustainability efforts and cultural preservation, European nations hope to ensure tourism remains viable for future generations.
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