As of April 25th, Venice has begun charging an entry fee — a so-called “tourist tax” — for day-trippers from that date until July. The fee, €5, can be paid once, and it allows access for the day to Venice and the minor islands of the Venetian Lagoon. Travelers staying in temporary accommodations in that area will be charged the tax in conjunction with their room fees—and those not staying in accommodations that handle compliance for them will need to carry documentation proving they have paid the fee.
Venice is a city renowned for its unique architectural beauty, Renaissance history, and cultural significance—as well as a common tourism destination for visitors from around the world. From its canals to its historic buildings and cultural events, crowd management and preservation of the local infrastructure is an ongoing challenge.
To ameliorate these costs, the Municipality of Venice implemented the aforementioned tax, referred to as an “Access Fee,” to regulate the influx of tourists and internalize the externalities created by mass tourism in the The Floating City.
Discouraging Day-Trippers
By imposing a fee on all visitors entering the City of Canals, including those spending only a few hours, the municipality discourages tourists that plan only a short visit—and consequently intend to spend little within city limits.
The policy includes provisions whereby the fee can be keyed to congestion, being higher during peak times and lower during off-seasons or where a daily threshold of visitors is not exceeded. A dynamic pricing model can make day trips particularly expensive during cultural events or on other high-demand days, pushing day-trippers towards off-peak times for visits and ameliorating congestion while prioritizing visitors that will be more likely to spend more time and money in the city.
Enforcement and Spending
The fee is collected through a number of mechanisms, including direct collection by the municipality and integration with existing transportation fees. Tourists will be checked at entry points and can be checked randomly elsewhere—the former adding an additional layer of administrative effort to a visit, discouraging short-term tourists.
The revenue generated by the Access Fee program will be used to finance the ongoing maintenance of infrastructure and cultural heritage sites, which can be especially strained by increased tourism. The policy connects the fee directly with the preservation of the very elements that encourage tourism to begin with — a perfect example of internalizing, through tax, the externalities generated by tourism.
Controversy
The Access Fee is not without controversy—including among Venetians themselves. Critics argue that the measure effectively turns the historic city into a theme park—and won’t address the underlying issues of over tourism.
The city has steadily lost year-round residents, declining by 120,000 since the 1950s. Increased tourism has generally been blamed for the shrinking population, with mass tourism overwhelming the city’s infrastructure. The policy is intended to strike a balance between a city reliant on tourist dollars and one that can maintain a population. It remains to be seen if it does so effectively.
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