Italy is preparing to join a growing list of countries—including the US, Canada, Brazil, Mexico, France, Germany, Spain, and Japan—in implementing new hotel occupancy taxes as a strategic move to boost tourism revenue. With Rome advancing legislation to introduce a 3% daily tax on all room rentals, the initiative aligns Italy with global efforts to generate sustainable funding for tourism infrastructure, support local economies, and manage increasing visitor demand through targeted reinvestment in the travel sector.
Rome Reintroduces a Forgotten Tax
The proposal in Rome involves a 3% tax on room rentals across various accommodations, including hotels, motels, bed and breakfasts, and short-term rentals. The measure, which echoes similar initiatives in other global cities, is aimed at boosting funding for tourism development and infrastructure. According to city officials, revenue generated from this occupancy tax will be reinvested directly into Rome’s tourism sector to enhance services and attract more visitors. The city previously had an occupancy tax in the 1970s, which lapsed in the 1980s, and is now being revived in response to increased tourism demands.
For the plan to proceed, additional legislation must be passed by the New York State Legislature. The Rome Common Council has already taken formal steps to request state lawmakers to draft a bill that would authorize the tax.
United States: A Patchwork of Municipal Taxes
Across the United States, hotel occupancy taxes are widely enforced at both state and municipal levels. Cities such as St. Paul, Minnesota; Camden and Cape May, New Jersey; Rehoboth Beach, Delaware; and many areas in Montana enforce occupancy or lodging taxes of up to 3%. In some cities, this tax climbs significantly—like in New York City or San Francisco, where combined state and city taxes can exceed 14%. These taxes fund a wide range of tourism initiatives, including event promotion, infrastructure upgrades, and destination marketing.
Canada: Provincial and Municipal Implementation
Canada employs similar strategies, with multiple provinces and cities imposing hotel occupancy or accommodation levies. British Columbia has a Municipal and Regional District Tax (MRDT) of up to 3%, while cities in Alberta such as Calgary and Edmonton collect a 3% Destination Marketing Fee (DMF). Ontario municipalities like Niagara-on-the-Lake and cities in Prince Edward Island apply a 3% Municipal Accommodation Tax. These fees are often reinvested into local tourism boards and used to promote regional attractions.
Brazil and Mexico: State-Level Lodging Taxes
In Brazil, hotel taxes vary by city but commonly range from 5% to 15%. São Paulo and Rio de Janeiro are prominent examples where tourists face hotel levies intended to support municipal tourism projects. Mexico has a more standardized approach, with many states including Mexico City, Nuevo León, Oaxaca, and Puebla imposing a flat 3% lodging tax. These taxes apply to both traditional accommodations and short-term rentals like Airbnb.
France, Germany, Spain: Longstanding Tax Models
In Europe, hotel occupancy taxes have been a norm for decades, with new adjustments and expansions continually being made. France’s “taxe de séjour” varies by hotel rating, with luxury stays exceeding €10 per night. Germany’s cities such as Berlin charge a 5% tourist tax on accommodations, while Spain has seen cities like Barcelona raise their hotel tax to over €6.75 per night for high-end stays. These taxes are used to manage the overwhelming demand from tourism and fund sustainability programs.
Japan: A Model of Efficiency
Japan’s tourism tax model includes both local and national components. While there is no uniform national occupancy tax, cities like Tokyo and Kyoto apply hotel levies ranging from ¥100 to ¥1,000 per night, depending on room price. Additionally, Japan’s 10% consumption tax applies to most hotel stays. These revenues have helped Japan develop extensive tourism infrastructure and support the country’s rapidly growing inbound tourism sector.
Italy’s Move Reflects Global Trend
Italy’s decision to implement a 3% occupancy tax in Rome is reflective of a global shift toward leveraging tourism for sustainable economic growth. As one of Europe’s top tourist destinations, Italy faces constant pressure to maintain heritage sites, manage visitor flow, and expand infrastructure. By introducing this tax, Rome aims to create a more stable funding stream that directly supports its tourism industry.
Mayor Jeffrey Lanigan emphasized that Rome, NY, is catching up with other municipalities that have long implemented similar taxes. He also noted that Oneida County, where Rome is located, already charges a 5% bed tax. The Rome-specific tax will supplement this with a dedicated local fund that focuses solely on enhancing tourism offerings and improving guest experiences.
Growing Global Adoption of Hotel Taxes
In addition to the countries already mentioned, many other European and Asian destinations are either proposing or expanding hotel taxes:
- Austria: Cities like Vienna and Salzburg apply around 3% hotel tax.
- Portugal: Lisbon charges €4 per person per night, capped at 7 nights.
- Greece: Introduced a climate resilience levy ranging from €1 to €4 per night.
- Netherlands: Amsterdam levies a 12.5% tourist tax.
- Switzerland: Zurich charges CHF 3.50 per night.
- Hong Kong: Reinstated its 3% hotel accommodation tax in 2025.
- Malaysia: Applies a flat RM10 (approx. $2) tourist tax per room per night.
- Thailand: Set to launch a 300 Baht (~$9) entry fee for air travelers.
- Bhutan: Maintains a Sustainable Development Fee of $100 per person per day.
- Bali (Indonesia): Introducing a $10 tax on international tourists in 2025.
Italy is set to introduce a new 3% hotel occupancy tax in Rome to generate dedicated revenue for tourism development, aligning with countries like the US, Canada, Brazil, Mexico, France, Germany, Spain, and Japan that use similar taxes to fund and sustain their travel sectors.
A Shared Global Strategy
The move by Italy and Rome to join a long list of countries imposing new hotel occupancy taxes underscores a shared global strategy: channeling tourism revenue directly back into the industry to foster sustainable growth. From New York to Tokyo, cities are realizing that well-managed tourism requires consistent funding—not just for marketing, but for infrastructure, environmental protection, and maintaining the quality of the visitor experience.
As global tourism continues its post-pandemic surge, occupancy taxes are becoming a key tool for governments to balance growth with sustainability. Italy’s adoption of a new hotel occupancy tax not only aligns it with global best practices but also marks a critical step in ensuring that the country’s rich cultural and historical sites remain well-preserved and accessible to future generations.
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