Effects of the introduction of a tourist tax
Tourism tax
Fecha: marzo 2026
Aleix Calveras Maristany
SEFO, Spanish and International Economic & Financial Outlook, V. 15 N.º 2 (March 2026)
Overtourism has re-emerged as a major challenge for many European destinations since the end of the pandemic, generating pressure on local infrastructure, housing markets and natural resources. Beyond its social and environmental impacts, excessive tourism can also undermine the visitor experience and weaken a destination’s long-term competitiveness. Tourist taxes are frequently criticised for raising costs and discouraging demand, yet economic theory suggests that a carefully calibrated tax can help correct the externalities associated with tourism activity. By increasing the cost of visiting congested destinations, such taxes can moderate demand and reduce pressure on common resources. If properly designed, they may also encourage a shift in demand towards visitors who place greater value on quality. In practice, this tends to attract tourists who are less sensitive to higher prices. Evidence from the Balearic Islands, one of Europe’s most mature and tourism-intensive destinations, demonstrates this logic. That said, simulations based on tourism demand elasticities suggest that the existing tax would need to increase by between 15 to 20 euros to generate a meaningful reduction in peak-season demand. While not a standalone solution, a stronger tourist tax could play an important role in managing tourism pressure while reinforcing the long-term competitiveness of the destination.