Vienna tourist tax rise worries hotels after record visits

Vienna has raised its visitor tax after record tourism growth, drawing warnings from hotel and travel industry representatives who say the higher charge could make the Austrian capital less competitive.

The municipality increased the tax from 3.2 percent to five percent from early July and plans to raise it again to eight percent in July 2027. Overnight stays in the city rose from 8.8 million in 2005 to 20.1 million in 2025.

Martin Stanits, spokesman for the Austrian Hotel Association, said the rise would make Vienna's visitor tax the second highest in Europe after Amsterdam. He argued that hotels were already facing high taxes and rising energy, wage and food costs.

Gregor Kadanka, head of the Association of Austrian Travel Agencies, said extra taxes and fees threatened Austria's attractiveness, pointing to competition from nearby destinations including Bratislava, Prague and Budapest.

Vienna's tourism office defended the rise as a way to share responsibility for maintaining the city's infrastructure. Isabella Rauter, a media officer at the office, said tourism benefits from public services and should contribute to their upkeep.

The city hopes the revenue will help Vienna stay competitive with Nordic and Swiss cities, but the higher charge could widen its price gap with central European rivals.