New Taxes Could Take a Bite Out of Travel Budgets in 2019

Maybe there is a price to pay for over-tourism?

Many destinations faced with increasing numbers of visitors are levying taxes to try and compensate for the infrastructure needs and tourism advancements required to keep pace with rapid growth.

Travelers may want to budget a little extra money when making travel plans for next year in some of the world’s most popular countries. At least three will ding travelers with new or higher taxes on visits in the coming year.

New Zealand has instituted a new NZ$35 fee for travelers arriving from major tourist destinations apart from Australia.

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The new tax has been brought on by a surge in tourism in the country. Annual visitor arrivals have risen by more than 1.2 million over the last five years and the rapid growth means the island nation needs to continue making advancements in infrastructure.

“Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to carparks,” Minister of Tourism Kelvin Davis told Stuff.co.nz.

Japan, another destination that has seen visitor numbers surge in recent years, is also imposing a new departure fee. The new tax has been dubbed the “sayonara tax” and is a $1,000 yen fee that is levied on visitors and residents leaving the country via air or sea.

The fee, which will be in place starting January 7, 2019, will be added to the price of air or ship tickets.

The money will be spent on upgrades to airports and tourist attractions, advances to Wi-Fi access on public transportation and to hire more multilingual guides.

Croatia will raise accommodation taxes on visitors in order to raise money to deal with over tourism. Lured by popular films and television shows, visitors have discovered Croatia’s stunning beaches and magnificent natural parks and bustling cities and fallen in love. However, a tax on accommodation will increase by 25 percent during peak travel seasons in 2019. Not to worry, however. The change from an 8 kuna fee to a 10 kuna fee is the equivalent of 30 cents.

The new rate will become effective January 1, 2019.

Barbados is also instituting a new tax on visitors. Whereas other countries are adding new levies on accommodation and visitation to assist in infrastructure, the high-end Caribbean destination is using the money to combat a large government deficit.

The fee is minimal, $2.50 per night, but follows the introduction of an airline travel and tourism development fee of $70 that is being introduced on October 1, 2018, and the doubling of the tourism sector VAT in 2020.