One of Europe’s most iconic cities is set to dramatically increase its tourist tax this winter. From December 1, the European city of Vienna will raise its tourist levy from 3.2% to 8.5% on overnight stays, marking a steep rise that could see visitors paying more than double in added fees per night. Known not only for its rich history and beautiful architecture with its many grand palaces but also for its famous Christmas markets with over 15 festive markets to explore, this sharp increase in fees comes just as the Austrian capital prepares to welcome thousands of holiday visitors.

The Christmas market at the town city hall (Rathaus) has more than 150 stalls and welcomes around three million visitors each year. A typical hotel stay costing around £129 per night with the tourist tax will now jump from £4.13 to about £10.97. 

That’s an increase of nearly £7 per night, which could add up quickly for longer visits or family holidays, especially during the peak festive season, which is already an expensive time of the year for many. 

Framed as part of a broader fiscal strategy to balance the city’s budget, the increase is meant to bolster investment in infrastructure, education, and sustainable transportation.

The city expects the increased tax to generate an additional £70 million annually, helping to ease a projected £533 million budget shortfall in 2025.

Vienna plans to use the revenue to invest in modernising its public transport system, expanding sustainable travel options, improving schools and other public services and building infrastructure that will benefit locals and tourists. 

However, the hospitality sector is sounding the alarm, warning that the steep hike could undermine Vienna’s appeal as a top-tier travel destination, disrupt operational planning, and erode competitiveness. 

Tourism professionals and the Austrian Hotel Association (ÖHV) have criticised the timing, calling it poorly planned and disruptive. 

The ÖHV also warned that the sudden hike will require “an unimaginable effort behind the scenes.”

They said key details about how the tax will be calculated and who will cover costs for existing bookings remain unclear. ÖHV President Walter Veit warned that with no guidance from major booking platforms, hotels are likely to be left to manage the situation alone, calling it a potential “fiasco.”

He said: “The major booking portals are letting the hotels run. This will become a fiasco.”