Major Brit holiday spot in Portugal to increase its tourist tax rate - again

Faro is set to increase its tourist tax (Image: Getty)

One of Portugal’s most charming holiday hotspots is to increase its tourist tax rate - again.

Faro, the capital of southern Portugal’s Algarve region, is home to some of the most pristine golden sand beaches and also boasts a stunning historic quarter where you will find the 13th-century Faro Cathedral.

It comes as no surprise that Brits have been flocking to this destination in their masses for years.

But now Faro has raised its tourist tax from €1.50 per night from March to October (it’s high season) to €2 (£1.66) per night. That's €28 (£23.24) for a fortnight.

And tourists visiting the city in the Algarve region between November and February will be slapped with a €1 (83p) per night tax or €14 (£11.65) for a fortnight

Faro has raised its tourist tax to €2 per night during the high season (Image: Getty)

Tourist taxes are fees usually levied indirectly through accommodation providers or holiday companies and is typically aimed at overnight visitors

The tax applies to adults aged 16 and older staying in hotels, local lodging, campsites, and caravan parks, with a maximum charge for seven nights per stay.

Those exempt include students both local and international students at the University of Algarve, medical patients, emergency evacuees, essential workers and local residents.

The Algarve, famous for its natural beauty and popular with tourists, has seen steady growth in visitors, with 13.1 million tourists arriving in Portugal from January to August 2024—a 6.7% increase over last year.

Officials hope that tax will helpkeep Faro a welcoming and well-kept destination for the future.

This news comes after many popular staycation spots in the UK are considering implementing similar tourist taxes.

Proposals for a law that could see visitors having to pay a tax for staying overnight is making its way through the Welsh Parliament this month.

Under the plans councils will be given the power to introduce a small "visitor levy" to raise money.

While the Scottish Highlands announced that it could introduce a 5% tourist tax, a move that could raise over £10 million a year.

If given the green light, the Highlands would follow Edinburgh to become the second part of the country to introduce the tax.

Edinburgh’s city council's plan for the 'Transient Visitor Levy,' is expected to be introduced in 2026.