As travel expenses continue to climb, Canadian tourists eyeing Finland in the next few years may soon need to dig a little deeper into their pockets.
Finland, renowned for its stunning natural landscapes, the mesmerizing northern lights, and a deeply-rooted sauna culture, has another feather in its cap – it has been named the world’s happiest country for nine consecutive years. However, by 2028, visitors from Canada might find their trips more expensive.
The Finnish government is currently mulling over the introduction of a tourist tax to manage the growing influx of visitors. On Friday, the Ministry of Finance revealed it has commenced drafting legislation for this proposed tax, following insights from a preliminary report.
What will the new tax look like?
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If the tax is approved, anyone enjoying a stay at a hotel or other temporary accommodation will be required to pay it. The Finnish government clarified that this charge would apply broadly, aiming to ensure fairness across the board for both domestic and international travelers.
“To treat all forms of accommodation equally, the tourist tax would encompass stays by all types of guests and temporary paid lodging,” the ministry stated.
This tourist tax, which would be a first for Finland, remains optional for municipalities to implement.
Finance Minister Riikka Purra explained, “A tourist tax would offer popular municipalities a new avenue to bolster their tourism revenue. Our objective is to create a straightforward tax model, with the decision to adopt resting in the hands of local authorities.”
While the exact rate is yet to be determined, officials anticipate a “moderate percentage” based on the cost of accommodation, akin to similar taxes in other European countries. For instance, starting July 1, Norway will introduce a three percent visitor contribution tax, set to take effect in 2025.
What’s behind Finland’s interest in a tourist tax?
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The revenue generated from this tax aims to alleviate some of the financial burdens municipalities face due to tourism.
According to a report from the Helsinki Times, Finland has experienced a substantial surge in foreign travelers compared to its European neighbors. In fact, the number of overnight stays in accommodations hit 7.2 million, representing a remarkable 12 percent increase, contrasted with an average rise of three percent across Europe. Data from Visit Finland indicates that, over the past two years, the majority of visitors have hailed from abroad, while domestic tourism has seen a decline.