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In Greece, tourists looking to discover ancient ruins and sunbathe on stunning beaches will now have to pay an additional tax. This new fee is not a standard visa or sales tax; instead, it is specifically designed to combat climate change.

Earlier this year, the Greek government unveiled a “resilience fee for the climate crisis” that will be applied during the busy travel season from March to October. This tax nearly doubles the previous accommodations tax.

The fee is charged at check-in, with rates depending on the type of accommodation. It ranges from 1.50 euros (approximately $1.64) per night for lower-rated hotels and apartments to 10 euros (around $10.96) per night for luxury five-star hotels.

With tourism in Greece booming this past summer, the new tax is projected to generate about 300 million euros (around $329 million) in revenue this year. The funds will assist in rebuilding efforts after the severe heatwave, fatal forest fires, and unprecedented flooding experienced last year. Additionally, it will support various environmental initiatives aimed at increasing climate resilience.

Greece’s new tax mirrors a trend seen across the globe as countries implement tourist levies to manage climate change and control overtourism. These taxes hold visitors accountable for preserving the destinations they enjoy. As managing sustainable tourism becomes increasingly vital, travelers should anticipate these fees as a regular occurrence.

“Many cities are acknowledging the importance of sustainable tourism practices, consequently leading to increased taxes that support essential initiatives,” explained Anna Abelson, a sustainability and tourism professor at NYU’s Tisch Institute of Hospitality.

Here’s what travelers need to understand about tourist taxes.

What are tourist taxes, and why are they gaining popularity?

For the past two decades, virtually all tourist destinations worldwide have implemented some form of tourist tax, as noted by Abelson. Initially, the funds collected were primarily directed toward mitigating the economic effects of tourism. However, there has been a shift towards managing these destinations more sustainably as they face increasing strains.

Notably, Greece, New Zealand, Bali, Amsterdam, Venice, and Iceland have all increased or introduced new tourist taxes in 2024. Earlier this year, Hawaii put forth a proposal for a $25 climate tax for its annual visitors, aiming to become the first U.S. state to implement such a levy. The tax could potentially generate around $68 million each year to support reef restoration, eco-friendly infrastructure, and measures for wildfire and flood prevention.

These fees aim at various purposes: they may reduce tourist numbers, encourage longer stays so travelers invest more in the local economy, or serve as funding for numerous initiatives, according to Chris Imbsen, the Vice President of Sustainability and Research at the World Travel & Tourism Council.

However, such fees could also lead to affordability issues for lower-income travelers. Since 2022, Bhutan has charged a “sustainable development fee” of $200 per person per day. On September 10, the Galapagos Islands, known for their rich biodiversity, increased their entrance fee from $100 to $200 per person for travel of up to 50 days—the first price rise in 26 years.

“For us, this fee increase is a reflection of the Ecuadorian government’s commitment to the long-term conservation of the Galapagos Islands,” stated Paulina Burbano de Lara, CEO of Metropolitan Touring, which provides guided tours in the Galápagos. “This move signifies dedication to preserving the delicate ecosystem of the islands for future generations.”

How are tourist taxes collected from travelers?

Tourist taxes, generally overseen by local or national authorities, are gathered in various ways, including at hotels or points of entry/exit in airports or ports.

• After being paused during the pandemic, Iceland restarted its tourist tax at the beginning of this year, charging ISK 600 (about $4.42) for hotel guests and ISK 1,000 (roughly $7.36) for cruise visitors.

• On February 14, Bali implemented a fee of 150,000 rupiahs (approximately $9.56) for foreign travelers, which can be paid ahead of the trip or upon arrival at the airport.
• Amsterdam has raised its tourist tax to 21.80 euros (approximately $23.88) for hotel visitors and 11 euros ($12.05) for each cruise passenger per day.
• Venice made headlines by testing a 5 euro (about $5.48) fee for day visitors during peak summer days. Tourists were required to “reserve” a time slot online and show a QR code if asked by officials. In July, the city announced the continuation of this fee, which will increase in 2025.

What Happens to the Funds?

In many destinations like Bali and Iceland, tax revenue is mainly used for projects related to environmental protection, cultural heritage conservation, and improving infrastructure, according to Abelson.

A study by Booking.com in 2024 showed that 71% of travelers wish to leave the places they visit in better condition than they found them.

For some countries, like New Zealand, which reports annually on funding from its International Visitor Levy (IVL), it’s easy to see how the funds are utilized—such as for conservation of endangered birds and supporting environmental law enforcement. However, in other locations, it is less straightforward.

“Clear information about how funds are used can build trust and inspire more responsible tourism,” advised Abelson. “When travelers understand how the revenue is being reported, they may be more inclined to support it.”

For instance, Mallorca implemented a Sustainable Tourism Tax in 2016, charging a few euros per night for tourist accommodations, claiming the revenue would support sustainable tourism jobs and scientific research on climate change. However, according to Imbsen, finding detailed information and success reports related to this tax is either impossible or very challenging.

Regardless of travelers’ access to information on their tax payments, these fees are likely here to stay. As extreme weather and rising sea levels continue to impact the globe, increased travel costs may be inevitable. “Prices will likely rise as we address environmental damage,” noted Imbsen.

Are These Taxes Effective?

This is a significant concern. “Effects of these taxes vary widely,” according to Imbsen.

Abelson concurs, pointing out that the success depends on the end results. In some instances, tourist tax funds have effectively supported community and environmental initiatives. For example, Lake Como in Italy allocated 348,000 euros (almost $383,931) of tourist tax income within the first six months of 2024 to fund organic waste collection, maintaining lakeside areas, and restoring historic frescoes.

However, other locations have not seen the same success. In Venice, the recent initiative to control tourist flow with a small fee similar to a cappuccino didn’t significantly reduce the number of visitors. Locals have deemed the effort “a failure” as the influx of tourists remained unchanged.

Part of the issue might stem from how new these concepts are. “Many areas still need to develop pricing strategies that would genuinely impact the situation,” according to Abelson.

Addressing challenges as significant as climate change, the effectiveness of these taxes isn’t straightforward, said Marta Soligo, a professor at the University of Nevada, Las Vegas Office of Economic Development.

“When discussing climate change and overtourism, we’re talking about a global issue, and these tourist taxes might just be a temporary fix,” she mentioned. With Venice—a UNESCO World Heritage site—facing severe flooding and the threat of sinking, local communities must consider the larger picture.

In her view, addressing climate change effects should involve local communities, leveraging indigenous land management knowledge, or taxing larger corporations that contribute to pollution.

While it’s not clear if tourist taxes can effectively tackle the issues posed by climate change and mass tourism—which is deemed the most detrimental form of travel by Soligo—the increase in their prevalence shows progress. “A decade ago, policies focusing on global warming and overtourism were rare, so it’s positive that we are now addressing and discussing these topics,” she added.