The Paradox of Taxing Travelers for Overtourism

If overtourism is the concern du jour, then tourist taxes are increasingly being posed as one solution. This year alone, Japan, New Zealand, Bali, Venice, Edinburgh, Amsterdam and others have either passed or implemented plans for new taxes. Not without reason, these are many of the same destinations also in the headlines for an overhwhelming onslaught of visitors. Taxing tourists isn’t new, of course. Transient room and accommodation taxes have long been levied on overnight visitors in many destinations. But this relatively recent crop of taxes are something of a different breed than in years before. Rather than being a straightforward way to raise money for tourism marketing efforts, they are often framed as a response to overtourism — a way to lessen the strain that tourism itself brings. In addition, as is the case in Edinburgh, they can be a way for local governments to signal to fed up locals they are doing something productive to meet the challenges tourism brings. Tax