EU May Raise Tourist Tax to Pay Off COVID-19 Debt

The European Union has proposed raising the tourist tax on foreign travelers, including UK and U.S. citizens, to pay back part of the €350 billion common debt that was issued to finance its recovery from the Covid-19 pandemic, BelTA reports citing Politico.

"There appears to be scope for a gradual increase in the fee (for tourist trips), which would enhance the long-term revenue potential," the memo seen by the publication says.

Politico notes that the potential new levy would be a particular hit to British tourists who already face longer passport queues and more restrictions to enter Europe as a result of Brexit.

According to several diplomats, the tourist tax hike is one of the hottest topics to be discussed at the EC budget meeting on July 16. Another EC official told the newspaper that a "possible correction of the fee" to account for inflation was being considered. The paper has learnt that Germany has criticized such move, saying it could discourage travel to Europe.

While the idea would be politically easy to implement, it would likely raise less than €1 billion a year, "a drop in the ocean compared to the EU's annual debt payments of €25-30 billion."

Currently, foreign travelers who do not need a visa to enter the EU must register themselves with the EU's ETIAS Travel Authorization Scheme and pay a €7 fee. By comparison, the U.S. charges EU travelers $21 and the UK £16.