Traveling to Italy? Tourists may soon face higher taxes

( NewsNation ) — Americans traveling to Italy may soon face hefty taxes as the popular European destination grapples with overtourism .

The proposed change comes as Italian citizens are sounding the alarm over the degradation of the country’s historical sites and housing that has been converted for tourists.

The proposed change, applicable not only to Americans, means tourists may soon have to pay a higher tax in Italy that would apply a levy of as much as €25 ($27.63) per night for the country’s most expensive hotel rooms, the Financial Times reported .

Proponents of the plan say it would help improve the services the country offers while shifting some of the responsibility onto the tourists who use those services. Critics, however, many of whom represent Italy’s hotels and other tourism-reliant businesses, fear an added tax may appear predatory or encourage tourists to travel to competitor European destinations instead.

“The common objective must be to support growth, not slow it down,” Federalberghi, an Italian hotel and tourist NGO, said in an official statement .

Italy’s travel and tourism sector made a strong recovery after the COVID-19 pandemic, which restricted travel and large gatherings. The World Travels and Tourism Council (WTTC) estimated the industry would generate more than €194BN to the Italian economy in 2023 and recover nearly all jobs lost during the global pandemic.

Under the proposed change, travelers could expect to pay €5 per room per night for a room under €100, €10 per night for rooms costing €100-€400, €15 for rooms priced at €400-€750 and €25 for rooms that are more than €750, according to a Yahoo News report .

The nation’s tourism ministry expects to discuss the proposal with industry leaders in September.

Tourists in Italy are already subjected to some taxes.

With some exceptions, the city of Venice applies a tourist tax on nonresidents who stay overnight in the city for the first five consecutive days of their visit. The rate varies between 1 and 5 euros per person per night, depending on location and the time of year, according to the city’s official tourism site .

The funds are used for the maintenance and restoration of museums, events, and hospitality as well as the recovery of culturally and environmentally significant sites.

Venice also wrapped up a separate pilot program in July that charged an entrance fee for day-trippers in an attempt to limit tourist activity on peak days. The program netted more than 2 million euros (or $2.2 million), but some declared it a failure, saying the city’s narrow roads and transportation were no less crowded .

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