More than 1 in 4 holidaymakers change travel plans due to tourist tax charges

• 7 in 10 (73%) travellers are unaware of when they need to pay tourist taxes.
• Left out of pocket: 18% have forgotten about tourist tax before.
• Nearly 1 in 5 travellers (19%) have underestimated tourist tax charges, by about 37% of the cost, on average.
• Unexpected tourism taxes have impacted holiday spending, people’s moods and the length of their stay.
• Confused.com’s travel insurance expert, Alvaro Inturmendi, explains the importance of budgeting ahead of your holiday to make sure you don’t get stung by extra costs.

More than 1 in 4 (28%) holidaymakers have reconsidered their travel plans to avoid high tourist tax costs, new research reveals.

Tourist tax is a charge added on top of travellers accommodation costs. This can be a day rate or a percentage of the total cost of your room. Yet, 7 in 10 (73%) travellers don’t know when they need to pay this additional tax according to new research from Confused.com.

According to the research, more than 1 in 10 (11%) holidaymakers have adjusted their travel dates or duration due to tourist tax charges, while a further 9% have changed their destination completely. Meanwhile, almost 1 in 10 (7%) changed their accommodation type.

And with Christmas market season upon us, Confused.com is urging travellers to do their research to find out how much they could be paying once they reach their destination. That's as research shows almost 1 in 5 (19%) travellers have underestimated how much they could be paying for tourist tax by around 37%, on average. This meant many were left out of pocket. In fact , more than a fifth (22%) had to rely on credit cards or borrow money. More than a third (35%) also said the fee reduced their spending money for activities.

According to the research, many looked up the costs before they travelled, with 1 in 10 (9%) admitting they've rearranged their plans due to high costs. Meanwhile more than 1 in 4 (26%) have been completely unaware until they've reached their accommodation.

It’s unsurprising that many are being caught off guard. Tourist tax isn’t standardised globally and can vary depending on the city and type of accommodation. For example, passengers heading to Berlin face a 5% tourist tax, while those heading to Vienna pay 3.2% of their accommodation fee.

And with many planning to travel abroad for the upcoming Christmas Market season, more could find themselves facing unexpected tax bills. According to the research, almost 2 in 5 (39%) holidaymakers are planning to visit a festive market this year. New York, Paris and Amsterdam are among popular locations to visit. But how much are they charging for tourist tax?

Confused.com has highlighted how much travellers can expect to pay in taxes this festive season.

Tourist tax costs for those visiting Christmas markets:

But not every city has a tourist tax. Other festive destinations such as Krakow, Stockholm and Denmark don’t currently charge additional taxes for tourists. If you are heading to a destination that doesn't have tourist tax, make sure you check online before travelling. The country might have recently introduced it.

But it also seems that many are clued up, with some travellers including tourist tax in their spending money. Almost two-thirds (61%) of holidaymakers research tourist tax costs prior to booking their holiday. But Londoners (33%) lead the way for being the most prepared, with the North East (32%) following close behind.

Passengers aren’t just financially impacted by these additional costs. Almost a third (29%) of UK travellers said it started their trip off on the wrong foot, particularly those from Northern Ireland (43%) and Wales (37%).

As a result, over half (53%) of people travelling from Wales, 47% from South West and 45% of East Midlands had less spending money for activities. Meanwhile, those from Yorkshire and the Humber (37%) were most likely to use credit cards or borrow money to manage these expenses.

It’s clear tourist tax is a cost many are forgetting, and it’s hitting many in the pockets. In fact, 1 in 7 (13%) have paid out more than £50 on this charge alone. Almost 1 in 5 (18%) travellers are planning to spend over £300 at Christmas markets this year. So it’s important they’re planning ahead to avoid being stung by extra charges and impacting their holiday.

Alvaro Inturmendi, travel insurance expert at Confused.com comments, “Christmas markets are a popular holiday for holidaymakers to enjoy the festive season and explore new cities. But what many aren’t aware of is the additional taxes they may have to pay when you get there. There’s no fixed cost for this, and it varies by country and city. Planning ahead will make sure you’re not having to dip into your spending money before the trip begins.

“Many hotels will also request that the tax is paid in cash. Before you go, find out exactly how much you need to pay so you have the right cash. We’ve collated how much tourist tax you could be paying for some of the most popular Christmas market destinations this year. That way, you can plan ahead, budget right and enjoy yourself without starting off with unexpected bills!”

-ENDS-

Notes to editors