Norway proposes tourist tax to fund public goods, facing industry pushback

On Tuesday, Norway’s Minister of Trade and Industry, Cecilie Myrseth, introduced a proposal for a tourist tax. Myrseth suggested that this visitor contribution could help finance public goods utilized by both tourists and local residents. The implementation of this tax will remain optional for municipalities.

Currently, over 20 countries in Europe have adopted similar visitor contributions. Amsterdam instituted its tourist tax in 1973, followed by Croatia in 2007. Some nations charge fixed fees for accommodations, flights, or cruise visits, while others apply percentage rates. The Norwegian government is proposing a voluntary scheme for municipalities, with feedback expected by January 2025.

Under this proposal, municipalities could impose an additional charge of up to 5% on accommodations and cruise visitors. The revenue generated would support the operation and maintenance of tourism-related public goods, manage infrastructure pressures and environmental impacts, and promote sustainability within the tourism sector. Given the projected lodging revenue of nearly 30 billion Norwegian kroner for 2023, such a tax could yield over 1.5 billion kroner annually for municipalities, assuming the tax rate is uniformly adopted.

However, opposition has emerged from industry leaders, such as hotel director Ida Jakobsen, who argues that the proposal unfairly targets Norwegian hotel guests while exempting other tourists. She calls for a more equitable approach that does not overly burden a sector already struggling under significant tax pressures.

Political responses vary, with some members of the Conservative Party expressing skepticism regarding the government’s approach, arguing that it predominantly affects Norwegian visitors who constitute the majority of hotel stays. Overall, there is a growing concern that without a well-rounded implementation plan, the proposed tax could inadvertently disadvantage local tourism businesses and their patrons.