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Could Copenhagen become next European city to introduce tourist tax?

Copenhagen’s city government wants to follow similar moves in other popular city destinations by introducing a tax on tourists.

Could Copenhagen become next European city to introduce tourist tax?
Copenhagen Municipality has sent proposals for a tourist tax to the Business Ministry. Photo by Kristijan Arsov on Unsplash

The Copenhagen Municipality city council is in favour of a tourism tax and its Finance Committee has produced various models which have now been submitted to the Business Minister, newspaper Politiken reports.

The minister, Morten Bødskov, has previously rejected a special tourist tax, saying it would cost jobs and not be profitable for the industry.

But the city government wants to change the minister’s mind.

“This is about being a good host city for the benefit of tourists and residents alike. It’s not great for business owners if tourists don’t have a good experience,” city councillor Rasmus Steenberger of the left-centre Socialist People’s Party (SF) told Politiken.

“There’s a strain on the city centre and we need money to keep the city clean, build more toilets, better bicycle lanes and more things that benefit tourists and the local population,” he said.

The models suggested by the municipal council vary widely, including one in which only cruise ship tourists are charged. In another model tourists could be charged 1 euro per night in the city. The latter model could earn Copenhagen 51 million kroner per year, Politiken states.

Perhaps the most-famous tourist tax in Europe is Italian city Venice’s 5 euro charge on tourists during peak season. The island of Bali in Indonesia charges tourists the equivalent of 60 Danish kroner on arrival at the airport.

Reports this week have described protests against tourists in Barcelona, where locals demonstrated against the impact of the tourism industry on local housing and businesses by throwing water at tourists outside cafes and blocking hotel entrances.

Cities including Florence, London and Amsterdam have meanwhile introduced regulations against accommodation platform Airbnb.

The Confederation of Danish Industry (DI) said it opposes a tourist tax in Denmark.

In a written comment to news wire Ritzau, the organisation said that the tax would not offset a loss of revenue from reduced jobs and tourist spending caused by the fee.

“Neither Copenhagen or the tourism industry are served by introducing a tourist tax to the city,” DI’s head of tourism Lars Bertolt Winther said.

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DISCOVER DENMARK

‘Coolcation’: Why Denmark is a top choice for tourists looking to escape the heat

Denmark is well-positioned to become a favourite destination for heat-averse tourists.

'Coolcation': Why Denmark is a top choice for tourists looking to escape the heat

In the tourism industry, each year seems to be characterised by an overarching trend.

In 2020-2021, the dominant trend was ‘staycations’ and domestic travel. With ongoing restrictions and health concerns due to the Covid-19 pandemic, many people opted to explore their own countries rather than travel abroad.

By 2022, the trend had shifted to ‘revenge travel,’ as people who had postponed their travel plans during the pandemic were eager to make up for lost time.

Last year, the trend moved towards sustainable travel, with increased demand for eco-friendly accommodations and transportation options.

But what about 2024?

The Nordic tourism industry has recently been abuzz with a new trend: ‘coolcations.’

This term describes vacations where travellers seek out cooler climates to escape the increasing global temperatures.

Offering mild summers, beautiful nature, and a vibrant cultural scene, Denmark might – somewhat unsurprisingly – become a favourite for tourists looking for refuge from scorching temperatures in countries such as Greece or Spain.

READ ALSO: Is Denmark at risk of overtourism?

‘Coolcations’: Already a trend in Denmark?

According to tourism data, the number of international overnight stays in Denmark has been on the rise since 2022, following two years of significant declines due to the Covid-19 pandemic.

While there is no direct data linking this increase to tourists seeking cooler climates, the ‘coolcation’ trend cannot be ignored according to Anne Villemoes, Director of Communications and Development at VisitDenmark, the country’s official tourism organisation,

“Tourism experts tend to believe that coolcations are already a trend that influences international tourism today,” Villemoes told The Local, adding that Denmark’s appeal extends beyond its milder weather.

“So, some international tourists may choose Denmark because of the cooler climate, but not just for that one reason. Many tourists travel for outdoor activities, and the opportunity to enjoy cycling, water sports, and nature in a comfortable and safe environment here in Denmark adds to their many other reasons for choosing the country,” she said.

How extreme weather might drive tourism changes

In a recent survey, it was found that almost one out of two international tourists were affected by extreme weather conditions during their vacation in 2023, which may convince two-thirds of them to choose other destinations in the future, Villemoes said.

Similarly, a 2023 Visit Sweden survey in Germany revealed that 40 percent of respondents expect to change their travel behaviour due to the heat in southern Europe, with some planning to travel at different times of the year or choose destinations other than southern Europe.

This highlights how the desire for cooler, more stable climates is becoming a significant factor in travel decisions.

The Danish tourism organisation already actively promotes the country as a destination outside peak tourist season.

“As a strategic choice, VisitDenmark already promotes Denmark as a destination outside the high seasons. But our head of market in France and Italy tells us that tour operators are actively seeking to ensure Denmark as a tourism product on their shelves due to popularity,” Villemoes told The Local Denmark.

The challenges of becoming a ‘coolcation’ hotspot

However, this popularity surge has already brought challenges, particularly in terms of environmental impact and community relations.

One notable issue is the increasing number of complaints about motorhome traffic (there were 2.3 million camper van overnight stays in Denmark in 2022, and the number is expected to increase).

Tourists often block scenic views and leave litter behind, much to the frustration of locals.

Peter Krusborg Pedersen, CEO of Visit Northwest Coast, recently told Euronews that the camper van situation in Denmark reminded him of the “Wild West” due to a lack of regulations.

To address this, new regulations are being introduced in the country, including parking bans in certain areas, better information for camper van tourists, and designated parking spots.

Denmark is also promoting eco-friendly tourism initiatives to complement new regulations.

Copenhagen’s official tourism organisation, Wonderful Copenhagen, recently introduced CopenPay, an innovative program that turns green actions into currency for cultural experiences.

READ ALSO: How to spend 24 hours in Copenhagen

This initiative rewards activities such as cycling, participating in cleanup efforts, or volunteering at urban farms with access to various local experiences.

Rewards include complimentary guided museum tours, free kayak rentals, and vegetarian lunches made from local crops.

“Making travelling sustainable is a core task for us,” Mikkel Aarø-Hansen, CEO at Wonderful Copenhagen, said.

“Through CopenPay, we aim to incentivise tourists’ sustainable behaviour while enriching their cultural experience of our destination. It is an experimental and a small step towards creating a new mindset amongst travellers, and it is one among many initiatives we are doing to make travel more sustainable.”

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