Tyrol is known for its stunning landscapes and world-class ski resorts and attracts millions of visitors each year, making tourism a vital part of the region’s economy.
However, with increasing visitor numbers comes a more significant strain on local resources, prompting regional officials to propose a reform to its levy on tourists.
Tourism Minister Mario Gerber (ÖVP) initially outlined the critical aspects of the reform in July. Since then, input from various stakeholders has influenced the final proposal, according to the Tyrolean state government, as reported by public broadcaster ORF.
What is the proposal?
Tyrol's tourism tax is paid by two groups: visitors and local businesses. Visitors pay a fixed amount per person per night.
In contrast, businesses pay a monthly "compulsory contribution" to the local tourism association for the "direct or indirect economic benefits of tourism" and to finance advertising, leisure attractions, cycling infrastructure, cultural events and more, according to the Tyrolean government.
The authorities now want to relieve the tax burden on local businesses, particularly those that do not directly benefit from tourism activities. At the same time, they want to increase the tax levied on tourists.
Under the new plan, the tourist’ local tax will increase, rising from €1 to €2.60 (per person per night). This is the base local tax, but municipalities can raise the amount to reach a €5 maximum.
On the other hand, only businesses directly connected to tourism will be required to pay the full tourism tax. For other companies, the levy will be reduced by either 25 or 50 percent starting next year. Micro-enterprises with an annual turnover of €5,000 or less will be exempt from the tax altogether.
A transitional period to allow adjustments will be in place until May next year. The state government has touted the reform as part of a broader economic relief package, promising €10 million in savings for the local economy.
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However, the proposal has not been without criticism. In July, the Tyrolean Chamber of Commerce, led by President Barbara Taler, argued that the reforms did not go far enough to support businesses. Ongoing discussions with stakeholders focus on refining the new levy’s operational structure and improving services within the tourism department.
The tourism levy reform is scheduled for a vote in the Tyrolean state parliament in October, where its final form will be decided.
Do I have to pay even if I live in Austria?
Technically, yes. Tyrolean law states that all overnight stays in the context of tourism are subject to taxation. The so-called local tax or visitor's tax is levied independently of the accommodation price, and the accommodation owner will usually document the stay and inform the guest of his obligation to register - or give them a filled-out registration form to sign and then collect the visitor's tax.
Some exemptions to the payment apply, including overnight stays in the course of gainful employment (such as for bus drivers, for example), overnight stays of relatives (up to siblings), and overnight stays by children up to the end of the calendar year in which they reach the age of 15.
How important is tourism for Tyrol?
Tourism is an important industry in Austria’s economy. It contributed 7.6 percent to the
According to the Austrian Tourism Satellite Account, GDP in the pre-pandemic year 2019 was 4.5 percent (2020: 4.5 percent, 2021: 4.1 percent). Domestic and foreign guests spent around €37.9 billion in 2019 (2020: €21.3 billion; 2021: €20.8 billion).
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According to Statistik Austria, tourism directly contributed 6.3 percent to Tyrol’s GRP (gross regional product) in 2021. Tyrol also benefits the most from tourism money, with the direct value added to tourism in 2021 surpassing €2.1 billion.
Like in 2019, most guests in 2022 travelled to Tyrol, followed by Salzburg and the capital city Vienna. As the COVID-19 pandemic has caused particular challenges for city and MICE (meetings, incentives, congresses, events) destinations, Vienna’s market share (9.6 percent) is still below pre-pandemic levels (2019: 11.5 percent).
According to Statistics Austria data, almost 8 percent of the workforce in Tyrol is directly employed in the tourism sector, and nearly 10 percent is indirectly employed in the industry.
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