The olympics are starting: Paris is going for the gold in more ways than one!

This week, the Olympics begin in Paris. While athletes aim for gold medals, the city has set its sights on a different kind of gold: the tourist tax. Last month, we wrote how Munich missed €6 million during the European Championships, as no tourist tax was charged. Paris definitely shows a different approach.

Tourist tax up to €15 per person per night

This year, the tourist tax rates in hashtag#Paris increased with nearly 200%. The lowest tax rate, applicable to one-star hotels, guest rooms, and hostels, is €2.60 per person per night. In the most luxurious hotels, the tax rate is €14.95 (!) per person per night.

Quick cash at the expense of tourists?

Opponents of the tourist tax will argue that Paris saw the increased number of tourists during the Olympics as a chance to increase revenue through a higher tourist tax. However, when considering the main goal of tourist tax, there is something to be said for introducing this rule. The original purpose of tourist tax is namely to maintain public infrastructure. After all, all tourists use public roads, public transportation, public restrooms, etc. a lot. Why should the city (and therefore its residents) pay for these costs?

Significant investments in public services

So, let’s look at the numbers again. During the hashtag#Olympics, public transport services will increase by an average of 15%, with some lines even running 70% more than normal. In addition, hundreds of kilometers of new bicycle lanes have been constructed, new metro connections have been realized to connect the airport faster, and there are ten free shuttle routes to access competition venues located far from stations. In total, approximately €500 million is invested in public services to provide tourists with the best possible stay and experience of the Olympic Games.

Different cities, different approaches

Whether the higher prices will affect attendance will remain to be seen. Either way, these are interesting times, with several major tourist European cities dealing with tourism in different ways. After the summer, we will analyze the different approaches, and further sharpen our vision on how to combat hashtag#overtourism.