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Big Bucks in Barcelona: How an 18% Tax Hike Aims to Bring in 100 Million Euros

Daniel Kim Views  

Wouldn’t one be inclined to invest if it promised an annual revenue nearing approximately $1.3 billion? Furthermore, the proposition appears even more enticing regarding the tourism sector, which is known for its relatively modest initial investments. Barcelona, a globally recognized tourist hub, is poised to augment its yearly income by around $1.3 billion in the foreseeable future.

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According to foreign media such as Euronews, on the 1st of last month, Barcelona increased its city tourist tax from 2.75 euros (approximately $3.06) per night to 3.25 euros (approximately $3.62), marking an approximate 18% rise. This marks the first increase in a year since April 2023.

Jaume Collboni, the Mayor of Barcelona, stated, “We raised the tourist tax to attract high-quality tourism that adds value to the city,” adding, “Our aim through the tourist tax is to curb the number of tourists and increase tourism revenue.”

Currently, Spain imposes a Metropolitan Tourist tax on foreign tourists across entire regions to prevent overtourism. Additionally, different cities impose varying City Tourist Taxes. Both the Metropolitan and City Tourist Taxes vary based on the stay duration and the accommodation rating.

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With this increase, foreign tourists traveling to Barcelona must pay a metropolitan tourist tax of 3.5 euros (approximately $4.08) per night and a city tourist tax of 3.25 euros (approximately $3.79) per night, based on a 5-star hotel standard. Adding both taxes, an additional fee of 6.75 euros (approximately $7.87) per night is incurred.

Barcelona includes accommodations other than hotels in the city tourist tax levy. The fee for rental accommodations such as Airbnb amounts to 5.5 euros (approximately $6.42) per night. In contrast, a combined metropolitan and city tourist tax of 6.25 euros (approximately $7.29) per day is applicable for stays on cruises.

Barcelona is expected to generate annual revenue of approximately 100 million euros (approximately $116.5 million) through the city tourist tax.

Daniel Kim
content@viewusglobal.com

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