Algarve tourist taxes grow

Trend continues in 3rd municipality

Olhão, in the Algarve, where a tourist tax is to be introduced
Olhão, in the Algarve

In a trend that is expected to expand in Madeira soon, the Portugal News reports that Olhão, in the Algarve, is expected to start applying a tourist tax of two euros per night during the high season in the coming days, hoping to raise up to €300,000 per year. 

“The tourist tax is a contribution that tourists leave in the local area to minimize their footprint”, summarised the mayor, António Miguel Pina, who expects to receive an annual revenue of “between €250,000 and €300,000”.

The measure, approved by the municipality in April, is expected to be published in the next few days in the official government publication, Diário da República, and will then take effect, making Olhão the third municipality in the Algarve to apply a tourist tax, after Vila Real de Santo António and Faro.

The tourist tax will be two euros during the high season and one euro in the low season (from November 1st to March 31st). Children under 16 and stays longer than five nights are exempt, which means that each tourist will pay a maximum of 10 euros. Very similar to the tourist tax currently applied in the municipality of Santa Cruz in Madeira.

Algarve tourist taxes grow 1

António Miguel Pina explained that this decision has to do with the profile of the tourist who usually comes to the local area, in most cases, families with children.

The Algarve Intermunicipal Community (AMAL) had already approved the application of an identical tourist tax of two euros, taking into account proposals made by the two largest hotel associations in the region and the Algarve Tourism Board (RTA).

The Câmara de Olhão intends to use 50% of the revenue from the new fee to “minimise the effects of tourist pressure, namely in terms of cleanliness and increased security”.

Thanks to PeterA for the link

5 thoughts on “Algarve tourist taxes grow”

    • A good question Greg. The accommodation the person is staying in collects it e.g. the hotel or AL and pays it over. What happens with people who camp out I don’t know or what for example happens if you book a hotel in Funchal for 2 weeks and in the middle of it you take a 2 night break on Porto Santo? Could you end up paying twice?

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  1. Tourist tax is not welcoming and tourists don’t like it. By the time you deduct related costs and the impact of poor PR it will return little or nothing

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  2. I agree Bernard, but it’s how they keep some of it’s residents employed by creating paperwork mountains to pass on to other departments to create more mountains!

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