Lisbon Approves Doubling Tourist Tax Starting September

Lisbon Approves Doubling Tourist Tax Starting September

Starting September 1st, visitors of Lisbon, Portugal’s vibrant capital, will face a significant increase in the city’s tourist tax, doubling from €2 to €4 per person per night. 

This decision, approved by the Lisbon Municipal Assembly, aims to address the growing impacts of tourism on the city.

The rising cost of Lisbon’s charm

The new tax is not limited to land-based visitors. Cruise ship passengers will also see their fees double, from €1 to €2 per person.

However, this change will only take effect after the official publication of amendments to cruise ship regulations.

Carlos Moedas, Lisbon’s mayor, explained the reasoning behind the increase: “The externalities of tourism must be combated and the quality of life of Lisbon residents restored.”

This statement reflects growing concerns about the strain tourism places on local infrastructure and daily life.

Political reactions mixed

The tax hike has sparked diverse reactions across Lisbon’s political spectrum.

The Socialist Party (PS) supports the increase, emphasizing the need for an “integrated strategy that promotes social balance, sustainability and guaranteed access to housing.”

In contrast, the Chega party voiced strong opposition, labeling the increase “unreasonable” and warning it could harm the city’s economy, particularly those invested in local accommodations.

The Liberal Initiative (IL) took a more cautious stance, abstaining from the vote. They highlighted concerns about the lack of transparency in how the tax revenue is allocated and used.

A woman walking near the brown concrete building

(Image courtesy of Elsa silva via Pexels)

Where will the money go?

A key point of contention is the use of funds collected from the tourist tax.

The Portuguese Communist Party (PCP) criticized the city’s track record, noting that since the tax’s introduction in 2016, it has not effectively mitigated tourism’s negative impacts on Lisbon.

The PS has called for a clear plan on how the increased revenue will be used. They suggest reinforcing urban hygiene, improving public transport, and increasing inspections of local accommodations and nightlife establishments.

Implications for visitors and migrants

For short-term visitors, the doubled tax means a noticeable increase in accommodation costs.A week-long stay will now incur an additional €14 per person in taxes alone. 

Long-term visitors and migrants might find this change adds to the growing cost of living in Lisbon, potentially influencing decisions about extended stays or relocation.

While not directly related to visa policies or the upcoming European Travel Information and Authorization System (ETIAS), this tax increase reflects a broader trend of European cities grappling with tourism management.

Visitors should be prepared for similar measures in other popular destinations.

People on public square in Lisbon, Portugal

(Image courtesy of Giulia calabretta via Pexels)

Shaping EU tourism policies

Lisbon’s decision could set a precedent for other EU cities facing similar tourism-related challenges.

As more destinations seek to balance the economic benefits of tourism with quality of life for residents, we may see a shift towards higher visitor fees and more stringent regulations.

This move also highlights the growing focus on sustainable tourism within the EU. Cities may increasingly use financial tools like tourist taxes to fund infrastructure improvements and mitigate tourism's environmental impact.

As Lisbon prepares to implement this significant change, the world watches. Will higher fees lead to more sustainable tourism, or will they deter visitors?

The answer may shape the future of travel in Europe and beyond.