Northern lights are one of the biggest draws for tourists to Norway (Photo: Visit Norway)
Norway is the latest European country to propose a tourist tax in a bid to curb overtourism at certain spots and to generate additional revenues for local authorities from tourism industry.
The Norwegian government has moved a bill in the Parliament with a proposal to impose a levy of 3 pc tax on accommodation for overnight stays. This proposal has come in the backdrop of concerns over rising visitor numbers in certain popular areas. As a solution, the government proposed a levy, which, if approved, could take effect in the summer of 2025. The proposed levy of 3 pc is a reduction from the 5 pc in the initial draft of the bill.
Norway is experiencing record-high numbers of tourists, reaching 16.7 million visitors reported in the summer of 2024. The idea behind the new proposed tax is to give popular tourist sites the means and tools to fund and develop services and infrastructure by harnessing the growing tourism economy.
But unlike other European destinations, the tax is not mandatory and local municipal authorities will have the choice to implement it based on local needs. If adopted, local officials would have to collaborate with the tourism industry to decide how the new funds will be used.
“It is not the case that we have year-round tourism throughout the country, but in some places, there are parts of the year that are particularly demanding, and the expenses that the residents have to pay for are particularly high,” Cecilie Myrseth, Norwegian Trade and Industry Minister, was cited by Norwegian public broadcaster NRK as saying. Myrseth also underlined that the city officials would be able to adjust the levy depending on the season.
Cecilie Myrseth
At present, the bill outlining the tax still awaits parliamentary approval. Nevertheless, it has faced opposition from some political parties. Initially, the idea was that the tax would affect only overnight visitors, which excludes cruise passengers and day-trippers.
According to critics, this approach neglects some of the most important visitors, especially in locations such as the Lofoten Islands, where infrastructure is already struggling to accommodate day-trippers. Furthermore, local hotel owners expressed their concerns that the proposal unfairly burdens traditional accommodation providers while exempting other segments of the sector.
While cruise tourists are not part of this initial phase, the government has indicated plans to consider a separate fee for cruise tourism in the future.
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