Tourism taxes are becoming more common worldwide, but travelers are not staying home. Indonesia’s tourism growth, in particular, has been remarkable. The country has recently joined the ranks of Spain, Japan, Thailand, Iceland, the UAE, the Philippines, and Mexico in implementing new visitor fees. Meanwhile, these destinations are experiencing record-breaking tourism growth throughout 2025.

 

This represents one of the most significant global tourism trends of the year. Although destinations add costs ranging from $1.90 to 21 USD (₹160 to ₹1,750) per person, visitor numbers continue surging 10 to 20% above 2024 levels. As a result, this reshapes how the travel industry approaches sustainability.

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European Leaders Set the Pace

First, Venice leads with €5 (₹445) entry fees on peak days. This protects its fragile canals despite drawing 20 million visitors in 2024. Similarly, Spain’s Catalonia and Balearic Islands impose €1 to €4 (₹90 to ₹355) nightly sustainable tourism taxes while visitor numbers soar beyond pre-pandemic records.

 

Japan’s “sayonara tax” costs ¥1,000 (₹545) for departing passengers. Furthermore, seamless integration into flight tickets ensures nearly universal compliance.

Southeast Asia Emerges as Tourism Powerhouse

Currently, Southeast Asia represents the most dramatic example among the top countries for tourism in 2025. For instance, Thailand expects over 35 million international tourists in 2025. At the same time, the government collects THB 300 (₹685) tourism fees from air arrivals.

 

Meanwhile, Bali showcases both the potential and the challenges of tourism taxation. The Indonesian island is tracking toward a 10 to 12% increase in 2025 arrivals. During the year’s first half, it collected IDR 168 billion (₹878 million) in tourism tax revenue. However, officials report only 35% compliance. Therefore, this prompts enhanced enforcement through spot checks at major attractions.

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Island Destinations Navigate Unique Challenges

Notably, island destinations face unique pressures among record tourism destinations. For example, Iceland experiences 20% growth in early 2025. In response, it implemented a “nature pass” costing ISK 1,000 to 1,500 (₹585 to ₹835) for protected area access.

 

Likewise, New Zealand requires most visitors to pay $35 NZD (₹1,750) to protect biodiversity. In other regions, Dubai‘s “Tourism Dirham” charges AED 7 to 20 (₹160 to ₹460) per room nightly. Similarly, Mexico’s Quintana Roo state collects VISITAX of approximately $11 USD (₹920).

Digital Innovation Drives Success

Fortunately, digital platforms transform tax collection efficiency. For instance, Bali’s LoveBali website streamlines payments. Simultaneously, Iceland and New Zealand offer online portals for advanced eco-fee payments.

 

Despite additional costs, the impact of the travel tax on tourism has been minimal. In fact, many visitors accept these fees. They recognize their contributions protect historic sites and fragile ecosystems. For couples visiting multiple European destinations, tourism fees might add €50 to €100 (₹4,450 to ₹8,900) to vacation costs. Still, most consider this reasonable.

 

Ultimately, the trend signals a fundamental shift toward sustainable tourism financing. Destinations clearly prioritize long-term sustainability over short-term revenue maximization.

 

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