Why You Have To Pay Tourist Board Tax In Croatia
In Croatia, including popular tourist destinations like Dubrovnik, tourists are required to pay the Tourist Board Tax as a way to contribute to the local tourism infrastructure and development. Here are the main reasons why this tax is mandated:
- Funding Tourism Initiatives: The revenue generated from the Tourist Board Tax is primarily used to fund tourism-related initiatives and projects. This includes promoting the destination through marketing campaigns, maintaining tourism infrastructure such as beaches and cultural sites, and organizing events and festivals that attract visitors.
- Supporting Local Economy: Tourism plays a significant role in the Croatian economy, contributing to job creation and economic growth, particularly in coastal regions like Dubrovnik. The Tourist Board Tax helps support the local economy by ensuring that funds are allocated towards improving the overall tourism experience for visitors.
- Fairness and Sustainability: By imposing a tax on tourists, Croatia aims to ensure that visitors contribute to the costs associated with maintaining and enhancing the destination. This helps distribute the financial burden more equitably among those who benefit from the tourism industry. Additionally, the revenue generated from the tax helps ensure the sustainability of tourism by funding conservation efforts and environmental protection measures.
- Legal Requirement: The Tourist Board Tax is mandated by Croatian law and is enforced by local authorities. Accommodation providers are typically responsible for collecting the tax from guests and remitting it to the appropriate authorities. Failure to comply with tax regulations can result in penalties for both hosts and guests.
Overall, the Tourist Board Tax in Croatia serves as a means to support and sustain the tourism industry while ensuring that visitors contribute to the costs associated with their stay. It’s a common practice in many tourist destinations around the world and helps fund essential services and infrastructure that benefit both tourists and local residents.
Tourist Board Tax and Tourist Tax What Is The Difference In Dubrovnik
In Dubrovnik, there are two types of taxes that tourists may encounter: the Tourist Board Tax and the Tourist Tax. Here’s the difference between the two:
- Tourist Board Tax: This tax, also known as the Tourist Development Contribution, is collected by the local Tourist Board. It’s typically charged per person, per night of stay, and the revenue generated from this tax is used to fund tourism-related initiatives, such as promotion campaigns, infrastructure development, and cultural events aimed at enhancing the tourism experience in the city. The Tourist Board Tax is often included in the overall accommodation cost or charged separately by lodging establishments.
- Tourist Tax (City Tax): The Tourist Tax, also referred to as the City Tax or Stay Tax, is levied by the local government or municipality. Similar to the Tourist Board Tax, it is usually collected per person, per night, and is applicable to tourists staying in accommodations within the city limits. The revenue generated from this tax goes towards maintaining and improving local infrastructure, public services, and amenities that benefit tourists, such as parks, beaches, and cultural sites.
While both taxes serve to support the tourism industry and contribute to the local economy, they are collected by different authorities and may have distinct purposes in terms of funding allocation. It’s essential for tourists to be aware of these taxes when planning their visit to Dubrovnik, as they may impact the overall cost of their stay.
Why Does Booking.com and Airbnb not add Tourist Board Tax to My Room Price in Dobrovnik and Why Do I Have To Pay in Cash Sometimes?
Booking platforms like Booking.com and Airbnb typically do not include local taxes such as the Tourist Board Tax in the room price for several reasons:
- Variability: Local taxes can vary depending on the destination and the type of accommodation. Since these platforms operate globally and offer listings from various regions, it’s challenging to incorporate all local taxes into the listed prices accurately.
- Regulatory Differences: The regulations regarding the collection and remittance of local taxes can differ from one location to another. Some jurisdictions require booking platforms to collect and remit taxes on behalf of hosts, while others may place the responsibility on the hosts or guests directly.
- Transparency: Booking platforms aim to provide transparency to guests regarding the breakdown of costs. By displaying the base room price separately from additional taxes and fees, guests can clearly see what they are paying for and understand the breakdown of the total cost.
As for why guests sometimes have to pay tourist taxes in cash, it could be due to several reasons:
- Local Regulation: In some destinations, local regulations may require tourist taxes to be paid directly by guests to the accommodation provider upon arrival or departure. This could be due to administrative reasons or local preferences.
- Tax Collection Practices: Accommodation providers may prefer to collect tourist taxes in cash to streamline the process and ensure compliance with local regulations. Cash payments may offer a more straightforward and immediate method of collecting taxes compared to other forms of payment.
- Communication Gap: Sometimes, there may be a lack of clarity or communication regarding the payment of tourist taxes between the booking platform, the accommodation provider, and the guest. This can result in guests being surprised by the additional tax upon arrival.
It’s essential for guests to review the booking terms and conditions carefully and inquire about any additional taxes or fees, including tourist taxes, when making reservations through booking platforms like Booking.com and Airbnb. This can help avoid any misunderstandings or surprises during the check-in process.
How To Pay Tourist Board Tax With Us
We prefer cash as our prefered payment method we do not have a card reader in our establishment as it will only rasie running costs and effect bed prices at our accomadation. However we accept paypal and revolut only as an electronic payment option which has a small fee of €0.50 ontop of the €2.70 to cover administrative and operational costs