SHARE
COPY LINK

ECONOMY

France earns €148 million in tourist taxes from Airbnb

As tourists made their way back to France in 2022, many stayed in Airbnbs, helping to more than double the country's earnings from its 'tourist tax' when compared to pre-pandemic levels.

France earns €148 million in tourist taxes from Airbnb
The logo of the online lodging service Airbnb displayed on a smartphone in Paris. (Photo by Lionel BONAVENTURE / AFP)

One of the world’s most visited countries – tourism in France rebounded in 2022, led by droves of American and British tourists who excitedly made their way back to l’Hexagone after several years of travel restrictions. In June, for the first time since the beginning of the pandemic, Paris and greater Paris region returned to pre-pandemic (2019) hotel occupancy levels.

It was not just hotels who welcomed back customers in 2022, however. Airbnb rentals also increased – so much so that the platform Airbnb paid €148 million in tourist tax to French municipalities in 2022, according to Le Parisien.

This amount represented an increase of 60 percent when compared to 2021, according to Airbnb.

The holidaymaker – or tourist – tax was first introduced in 2018, and it is proportional to the number of nights spent in a property and is paid by the tenants at the end of their stay. It is paid twice a year to the local council on behalf of the hosts, professionals and individuals.

The specific rate of the tax depends on the nature of accommodation, which includes its classification (star rating), as well as the rate voted on by the municipality.

As for 2022, it was paid out to over 23,000 French municipalities.

For furnished accommodation, municipalities typically set a rate of between one percent to five percent of the nightly price per person, which usually corresponds to just a few euros per trip. 

France’s 2022 tourism boost 

“The year 2022 marks the recovery of tourism across the whole of France,” Emmanuel Marill, Director of Airbnb France, told Le Parisien.

Airbnb saw a significant rise in the total number of rentals in France for the year 2022, which they classify as the period between November 2021 and October 2022, when compared to both 2021 and 2019 (pre-pandemic).

France more than doubled its earnings from the tourist tax in 2022 (€148 million) when compared to the €58 million in 2019, performing better than 2021 as well, when the country collected €93 million from the tax.

Unsurprisingly, it was the city of Paris who received the most from the tourist tax – at least €24.3 million.

READ MORE: Bail mobilité: How France’s short-term rental contracts work

This also represents a significant increase – a jump of 158 percent – when compared to 2021, when the city collected €9.4 million.

Paris is not the only French city to have received more funds from the tourist tax though – Marseille collected €2.8 million, compared to the €1.9 million from 2021, and Nice collected more than €2.4 million, compared to more than €1.2 million in 2021.

Corsica also collected a significant amount in the tourist tax – about €3.7 million in total across Corsican municipalities, according to Franceinfo

Non-urban parts of France were not forgotten either – about 30 percent of the earnings from the tourist tax went to rural communities – or localities with less than 3,500 inhabitants. 

“Tourism in France is also rural,” the director of the Association for Rural Mayors of France, Cédric Szabo, told Le Parisien. “Many people are seeking the calm and the outdoors for their French vacation.”

Szabo pointed out that rural travel in France has great potential for tourism, even in places that do not have a primary attraction, like “Mont-Saint-Michel or Les Baux-de-Provence.”

The head of Airbnb France also went on to tell the French daily that the rental platform is “increasingly benefiting a wide variety of communities every year.”

“Whether they are located in the heart of or on the outskirts of major urban areas or in the French countryside, more French municipalities have additional means to develop their tourism offering and promote their territory over the long term,” he said.

Criticism for Airbnb

However, despite the increase in tax revenue, many cities have criticised the expansion of of bed-and-breakfasts thanks to platforms like Airbnb or Booking.

READ MORE: What are the rules on renting out French property on Airbnb?

Residents often accuse the platforms of causing a housing shortage which negatively impacts those who live in these towns year-round.

In response to these concerns, several town halls have put in restrictions for renting out a property with Airbnb. Renters are increasingly required to declare their rentals to the town hall.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TRAVEL NEWS

Reader question: What will EES mean for foreigners living in Europe?

The EU's new Entry & Exit System (EES) of enhanced passport controls is due to come into force later this year, but among many questions that remain is the situation for non-EU nationals who live in the EU or Schengen zone.

Reader question: What will EES mean for foreigners living in Europe?

Currently scheduled to start in autumn 2024 (unless it’s delayed again, which is not unlikely) the EU’s new Entry & Exit System is basically an enhanced passport check at external EU borders, including a facial scan and fingerprinting.

You can find a full explanation of the new system HERE.

Travellers crossing an external EU or Schengen border for the first time will be required to complete EES ‘pre-registration’ formalities including that facial scan and fingerprinting.

There are, however, several groups exempt from EES and one of them is non-EU nationals who have a residency permit or long-stay visa for an EU country.

So if you’re a foreigner living in the EU or Schengen zone, here’s what you need to know.

Exempt

One of the stated aims of EES is to tighten up enforcement of over-staying – IE, people who stay longer than 90 days in every 180 without a visa, or those who overstay the limits of their visa.

Obviously these limits do not apply to non-EU nationals who are resident in the EU or Schengen zone, which is why this group is exempt from EES checks. They will instead be required to show their passport and residency permit/visa when crossing a border, just as they do now.

In its explanations of how EES will work, the European Commission is clear – exempt groups include non-EU residents of the Bloc.

A Commission spokesman told The Local: “Non-EU citizens residing in the EU are not in the scope of the EES and will not be subject to pre-enrollment of data in the EES via self-service systems. The use of automation remains under the responsibility of the Member States and its availability in border crossing points is not mandatory.

“When crossing the borders, holders of EU residence permits should be able to present to the border authorities their valid travel documents and residence permits.”

How this will work

How this will work on the ground, however, is a lot less clear.

Most ports/airports/terminals have two passport queues – EU and non-EU. It remains unclear whether the non-EU queue will have a separate section for those who are exempt from EES.

It does seem clear that exempt groups will not be able to use the automated passport scanners – since those cannot scan additional documents like residency permits – but should instead use manned passport booths. However it is not clear whether these will be available at all airports/ports/terminals or how non-EU residents of the EU will be directed to those services.

There’s also the issue that individual border guards are not always clear on the processes and rules for non-EU residents of the EU – even under the current system it’s relatively commonly for EU residents to have their passports incorrectly stamped or be given incorrect information about passport stamping by border guards.

Brits in particular will remember the immediate post-Brexit period when the processes as described by the EU and national authorities frequently did not match what was happening on the ground.

The Local will continue to try and get answers on these questions. 

READ ALSO What will EES mean for dual nationals

What if I live in the EU but I don’t have a visa/residency permit?

For most non-EU citizens, having either a visa or a residency permit is obligatory in order to be legally resident.

However, there is one exception: UK citizens who were legally resident in the EU prior to the end of the Brexit transition period and who live in one of the “declaratory” countries where getting a post-Brexit residency card was optional, rather than compulsory. Declaratory countries include Germany and Italy.

Although it is legal for people in this situation to live in those countries without a residency permit, authorities already advise people to get one in order to avoid confusion/hassle/delays at the border. Although EES does not change any rules relating to residency or travel, it seems likely that it will be more hassle to travel without a residency card than it is now.

Our advice? Things are going to be chaotic enough, getting a residency permit seems likely to save you a considerable amount of hassle.

Delays 

Although residents of the EU do not need to complete EES formalities, they will be affected if the new system causes long queues or delays at the border.

Several countries have expressed worries about this, with the UK-France border a particular cause for concern.

READ ALSO Travellers could face ’14 hours queues’ at UK-France border

Where does it apply?

EES is about external EU/Schengen borders, so does not apply if you are travelling within the Schengen zone – eg taking the train from France to Germany or flying from Spain to Sweden.

Ireland and Cyprus, despite being in the EU, are not in the Schengen zone so will not be using EES, they will continue to stamp passports manually.

Norway, Switzerland and Iceland – countries that are in the Schengen zone but not in the EU – will be using EES.

The full list of countries using EES is: Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Therefore a journey between any of the countries listed above will not be covered by EES.

However a journey in or out of any of those countries from a country not listed above will be covered by EES.

You can find our full Q&A on EES HERE.

SHOW COMMENTS