Tourist Tax: Money for Toilets or A Backward Step?
Alright, folks! Gather ’round! It’s time for a steaming pot of controversy brewed right over the fjords of Norway! The government wants to introduce a tourist tax of up to 5% on overnight stays. You know, just what we need—an extra bill slapped onto our already eye-watering hotel prices. Imagine that! You go away to enjoy a lovely weekend, and before you know it, you’re financing toilet paper for tourists!
The “Visitor Contribution” Debate
- The government claims this tax will help finance public goods…
- But the Norwegian Hospitality Association (NHO Reiseliv) believes it’s a terrible idea that could make Norway’s tourism industry less competitive. Can we just agree that hotels shouldn’t cost more than a bad Tinder date?
- Bård Huseby, who runs a little cozy hotel called Fjærland Fjordstove Hotell, thinks targeting those penny-pinching cruise tourists might be the best move. You know who you are, sitting there eating cheap buffet food while the locals are picking up the tab!
Tourists have been known to leave a trail of environmental chaos—messed up gardens, litter in nature, and tents pitched in places resembling a scene from a horror movie. Come on, why not toss in a few more quid to help clean up after yourselves? Local spots have been begging for more funds to deal with the hordes. But really, a visitor contribution for what? To wipe up after the camping festival?
A Taxing Situation!
Our fine Minister of Industry, Cecilie Myrseth, believes that this contribution will give municipalities “the opportunity” to inflict—sorry, impose a tax on accommodation. I mean, what a lovely way to celebrate your holiday: “Excuse me, but I’m here to pay for overpriced rooms and now an additional contribution to the local toilet fund!” Doesn’t this make for a wonderful dinner conversation?
- What do the municipalities get with this extra bit of cash? Public services, toilet facilities, and fluffiness for the local experience! A five-star suite—or five-star toilet?
- But let’s be honest here: what’s to stop these municipalities from using this money to cover things they should already be handling? Aren’t they just singing, “Oh, look! More cash for the municipal fund!”?
Everyone’s Upset—What Gives?
Bård Huseby, bless him, is worried that this could push away tourists altogether. He’s had his hotel for over a decade, and he’s trying to keep his doors open in winter. If Norwegians have to pay more just to sleep in their own bed away from home, then where’s the incentive to shell out their hard-earned cash? “Sven, how about a trip to Thailand instead?”
And here comes Ole Michael Bjørndal from NHO Reiseliv chipping in, calling it a “disabling proposal” that will raise the cost of holidays across the board. Maybe we should tax poor decision-making on holidays too! It could cover a lot of losses!
A Little Bit of Math!
Let’s break down how much this tax could cost a family: For two hotel rooms for a week, the costs could look a little something like this:
- Lofoten—NOK 1366 extra
- Tromsø—NOK 797 extra
- Oslo—NOK 985 extra
- And rounded up—it’s the chance to pay for “other people’s” rubbish!”
Really? Is this how we treat our tourists? Add insult to injury! “Merry Christmas! Happy New Year! Here’s your toilet tax!” What’s next? A ‘drinking water tax’ while we’re at it?
The Government’s Perspective
Minister Myrseth, looking at this through her best optimistic filter, sees this as a way for tourists to contribute to the upkeep of public facilities, not unlike a paying guest at a friend’s house. But let’s be clear: we’re not just guests in someone’s house; we’re paying patrons getting hosed left and right—literally! Honestly, isn’t it about time for the government to reassess their approach before they lose all credibility? Messenger, meet brick wall!
The Bottom Line
So, dear readers, should we embrace this visitor contribution as a necessary evil or fight against it and say we won’t pay for the privilege of using a clean toilet? It’s a tangled web of politics, profit, and public goods. But one thing’s for sure: we’ll all be keeping an eager eye on this proposal, watching how it unfolds, and planning our next holiday accordingly! Who’s up for that toilet tax-free trip to Spain?
Remember, the only tax you want to pay is the one that comes with a sunbed and a piña colada, not a dreaded public toilet budget!
The short version
- The government is proposing a controversial tourist tax, or visitor contribution, that could reach as high as 5 percent for overnight accommodations. This initiative is aimed at generating funds to support critical public goods and address the mounting challenges that arise from the increasing influx of tourists to popular destinations.
- The NHO Reiseliv organization contends that this visitor contribution is misguided and will undermine the competitive edge of Norway’s tourism sector, which heavily relies on attracting visitors.
- Bård Huseby, owner of Fjærland Fjordstove Hotell and a member of NHO Reiseliv, advocates for shifting the financial burden towards those tourists who contribute the least economically, particularly targeting cruise and motorhome visitors who often utilize the landscape without significant financial input.
Tourists significantly impact the environment, leaving messes in gardens and littering natural spaces, leading to an increase in complaints regarding the overcrowding of scenic areas like Lofoten.
For years, countless tourism destinations across Norway have been advocating for increased financial support to cope with the strain brought about by overwhelming visitor numbers.
Last week, the government proposed a solution:
– Business Minister Cecilie Myrseth (Ap) stated in a press release, “Visitor contributions could help finance the public goods utilized by both tourists and local residents.”
Cecilie Myrseth (Ap)
Minister of Industry and prominent member of the Labor Party.
She intends to empower municipalities to levy a tax of up to five percent on accommodation fees, encompassing hotels, campsites, and Airbnb rentals, in the form of a “visitor contribution” or tourist tax.
This is the proposal from the government
The government has unveiled a detailed plan for a “visitor allowance.”
- This would grant municipalities the power to impose a tax of up to 5 percent on various types of accommodation, including hotels, campsites, and short-term rentals.
- The additional tax is intended to enable municipalities to fund vital public services, encompassing infrastructure for nature preservation, waste management, and restroom facilities.
- The Ministry of Fisheries and Industry clarifies that the tax’s aim is not to cover standard municipal services that are unrelated to tourism activities.
- Currently, the proposal is undergoing a consultation process, with plans for the government to present a formal law to the Storting in the spring.
“They start at the wrong end,” says Bård Huseby.
As the owner of Fjærland Fjordstove Hotell in Sogndal, Huseby fears the proposed tax may deter tourists, leading them to seek other destinations or to travel abroad entirely.
He emphasizes that the industry is nearing a point of diminishing returns, expressing concern about the financial viability of maintaining his establishment amidst these economic pressures.
Huseby mentions that operating year-round is crucial for sustaining local jobs and community engagement within Fjærland.
He highlights the financial burdens associated with keeping his hotel open in winter, particularly as Norwegian consumers face increased economic strain, making the proposed tax increasingly burdensome.
– Loses all credibility
Huseby warns that if his hotel closes for part of the year, it could lead to job losses within the municipality and subsequently decrease tax revenue for local services.
He firmly believes that the current implementation proposal is misguided.
Huseby acknowledges that he supports the idea of a visitor contribution, but not in its current form, arguing that it disproportionately targets accommodation providers and disregards other forms of tourism.
- View over the fjord. Photo: Fjærland Fjordstove Hotell
- A sauna at the hotel. Photo: Fjærland Fjordstove Hotell
View over the fjord. Photo: Fjærland Fjordstove Hotell
Huseby urges the government to concentrate on developing pilot projects targeting tourists that spend the least financially.
He cites cruise passengers, motorhome visitors, and bus groups as essential categories that should face taxation first based on their minimal contribution to the local economy.
“Disk boom”
According to NHO Reiseliv’s business policy director, Ole Michael Bjørndal, this policy could inadvertently escalate the cost of holidaying within Norway, further diminishing the country’s tourism industry’s competitiveness.
Ole Michael Bjørndal
Department director at NHO Reiseliv.
He aligns with Huseby’s critique, labeling the proposed visitor contribution as a “disabling proposal,” advocating for taxation on those tourists who economically contribute the least.
Bjørndal notes that approximately two-thirds of hotel patrons in Norway are domestic tourists, raising concerns that imposing the visitor contribution will elevate costs and deter local travelers.
Data from Menon, commissioned by NHO Reiseliv, reveals that in regions like Trøndelag and Greater Oslo, local residents account for a significant portion, 60-70%, of the revenue generated in hospitality and tourism sectors.
Bjørndal emphasizes that the visitor contribution effectively places an unfair tax burden on local citizens who desire to engage with their community’s tourism offerings.
He highlights that should every municipality adopt the 5 percent tax, the collective revenue would potentially reach as much as one and a half billion kroner.
That’s how much the tax can add up to for a family
Inquiring about the financial implications, how much more would it cost a family for two hotel rooms over a week if a 5 percent tourist tax were instituted by municipalities? NHO Reiseliv analyzed various regions during peak tourist season in July:
- Lofoten – 1366
- Tromsø – 797
- Svalbard – 1560
- Oslo – 985
- The Kristiansand region – 1577
- The Stavanger region – 872
- The Bergen region – 1168
- Ålesund/Sunnmøre – 1392
- The Røros region – 1076
The figures derive from the average prices reported for each region in June and are sourced from Statistics Norway.
Bjørndal points out that while the legislation allows municipalities to impose the tax, there is a concern that most will feel economically pressured to implement it given budgets constraints.
– Municipalities in Lofoten and other tourism destinations have pointed to a number of major challenges. Isn’t it good that the government is now coming up with measures that will give the municipalities more to work with?
– We appreciate the urgent needs expressed by local leaders but believe the government rushed to implement these changes.
Bjørndal suggests that a more prudent approach would involve piloting projects to address the specific challenges faced by municipalities affected by overtourism.
– Unfair
Industry Minister Cecilie Myrseth (Ap) views the engagement from business leaders and municipalities in a positive light.
– It’s unjust for local residents to bear the entire cost burden of tourism-related expenses, including restroom facilities and waste management. Thus, we propose permitting municipalities to levy a visitor contribution.
She emphasizes that municipalities are restricted from diverting this tax revenue to cover unrelated budgetary expenses.
Myrseth insists that the funds generated by the tax are strictly earmarked for tourism-related public goods, which include path maintenance, restroom amenities, waste disposal, and information services, underscoring the importance of this stipulation in the consultation document circulated by the government.
She also expressed anticipation for substantial feedback from the NHO as the consultation process unfolds, advocating for collaboration and transparent communication.
How can careful consideration of taxation affect local tourism in Norway?
Raph_dphl0_4 _paragraph_1cz5q_9 layout-component layout-normal layout-padded”>Bjørndal concludes by stating that while additional funding for municipalities may be beneficial, it is crucial to approach such taxation with careful consideration to avoid harming the local tourism industry and its economic impact on communities throughout Norway.
