MUNICIPAL TOURIST TAX IN NORWAY
As tourism traffic increases in Norway, putting pressure on the environment and local infrastructure, the government has taken action. With the draft law prepared, it is planned to impose a 3% accommodation tax in busy destinations. The revenues from the tax will be transferred to public services.
Norway, which has reached record levels in tourism, plans to switch to accommodation tax in order to alleviate the environmental and social pressure in popular destinations. The new bill submitted to the Norwegian parliament envisages a tax of 3% per night in hotels, campsites and short-term rental facilities (such as Airbnb).
Tourism activity in Norway, which reached 38 million overnight stays in 2024, prompted the government to take action to reduce the pressure on local infrastructure. The new bill aims to apply the overnight tax only in busy regions and to support environmental services with the revenue generated.
If the implementation is enacted into law, it is expected to enter into force in the summer of 2025. Unlike general tourism taxes in some parts of Europe, the Norwegian model is planned as a voluntary system that municipalities can implement with their own decisions.
Infrastructure Support for High Number of Visitors
It is aimed to strengthen the infrastructure services of the municipalities, especially in places where tourist pressure is high, such as the Lofoten Islands and Geiranger. Norwegian Minister of Trade and Industry Cecilie Myrseth said in a statement on the subject, "Not every municipality needs this, but it is important to build trust between locals and visitors in areas under high pressure."
The taxes collected will be required to be spent only on tourism-related public services - for example, public toilets, waste management, maintenance of hiking trails and information signs.
"Cheaper than a cup"
The tax rate was initially proposed as 5%, but was reduced to 3% based on feedback from the public. Accordingly, an additional fee of 45 kroner (approximately 4.10 dollars) will be reflected in a hotel stay of 1,500 Norwegian kroner per night. Minister Myrseth emphasized that the additional cost is "less than the price of a coffee."
Consistent with the Global Trend
Reaching a new national record with more than 38 million overnight stays in 2024, Norway aims to preserve environmental balance and the tradition of "open nature for everyone" with this regulation. According to Forbes, Norway's proposal is also in line with the tourism tax practices that are rapidly spreading in Europe and around the world. Countries such as France, Italy and Spain, where taxes have been applied for a long time, were re-joined by Iceland after the pandemic.
Source: TravelPulse
