Popular Italy city hits tourists from Canada with sharp fee increase

As if international travel from Canada wasn’t pricy enough, visiting a popular city in Italy has just become more expensive.

Visitors from Canada staying in Milan, the fashion capital of Italy, are now paying more after the city approved a tax increase that kicked in on Jan. 1. Tourists booking stays in Milan are already required to pay a tourist tax; however, this year, that fee has seen a significant increase ahead of popular upcoming events such as the Olympic Winter Games Milano Cortina 2026 and Carnival in Milano in February.

Table of Contents

What is the tourist tax?

Ruggiero Scardigno/Shutterstock

Like most popular tourist destinations, Milan has been struggling with the impact of overtourism. The tourism tax isn’t new; it was first implemented in 2012.

“Revenues from the Tourist Tax will finance actions for the preservation of the city’s artistic heritage and for the improvement of services for all tourists,” the Milan City Council stated.

The rate applies to each person, and for each day they stay at a hotel or other accommodation in Milan. The fee is paid directly to the manager of the accommodation.

Youth under 18 are exempt from the fee, as are university students up to age 26 enrolled at a Milan university, and young people up to age 30 staying in hostels for “social, cultural and educational purposes.” Families or relatives accompanying someone hospitalized in Milan are also exempt.

How much is the new increase?

Cristi Croitoru/Shutterstock

In 2012, rates ranged from €2 (C$3.22) to €5 (C$8.05) per night per person, depending on the type, class, and number of stars of the establishment.

But 13 years later, that rate has seen a significant increase. This year, according to the City of Milan, the tax rate for one-star hotels starts at €4 (C$6.44), while four-star hotel residences are now charging tourists a maximum of €10 (C$16.10) per person.

Below are the rates by categories and tiers (conversion rates are based on the exchange rate of €1 to C$1.61):

Hotel accommodation facilities:

Hotels or one-star hotels: €4 (C$6.44)
Two-star hotels or guesthouses: €5 (C$8.05)
Three-star hotels or guesthouses: €7.40 (C$11.92)
Four-star hotels or guesthouses: €10 (C$16.11)
Five-star hotels or guesthouses: €10 (C$16.11)
Two-star tourist hotel residences: €5 (C$8.05)
Three-star tourist hotel residences: €7.40 (C$11.92)
Four-star tourist hotel residences: €10 (C$16.11)

Non-hotel accommodation facilities:

Open-air accommodations: €3 (C$4.83)
Youth hostels: €3 (C$4.83)
Holiday homes: €7 (C$11.27)
Lombard guesthouses/guest houses: €9.50 (C$15.30)
Holiday homes and apartments for short-term rentals: €9.50 (C$15.30)
Bed and Breakfast: €9.50 (C$15.30)
Inns: €9.50 (C$15.30)

The City of Milan states that the fee will also benefit tourists as the money raised will go towards improving services.

“The revenues deriving from the tourist tax are intended for interventions relating to tourist services as well as the recovery and/or maintenance of the cultural and environmental assets of the city of Milan,” the site states.

Milan isn’t the only renowned destination to hike taxes on hotels and temporary accommodations.

On Jan. 1, Hawaii also applied a modest 0.75 per cent tax increase on hotels or short-term rentals. Starting March 1, Kyoto is set to increase its accommodation tax, with a multi-tiered system similar to Milan’s.

link