According to the law, this fee will be applied to “paid overnight stays in tourist resorts or local accommodation establishments located in the geographical area of the Municipality of Faro, per night, for a maximum of seven consecutive nights per person per stay”. This will also be applied regardless of whether the reservation was made in person, on line, or other.
In addition to this, the amount will apply to “guests aged thirteen years and above, regardless of their place of residence, during the months of March to October each year.”
Other Portuguese city’s commonly frequented by a large influx of tourists such as Lisbon and Porto already apply tourist taxes of €1 and €2, respectively. In Porto, the revenue obtained from the tourist tax, which came into force last March, exceeded the city’s expectations by 50%. On average, it has been determined that it generates an average of €750,000 a year for its coffers.
Similarly, in Lisbon, from 2016-2017, the tourist tax of €1 per person per night has brought an extra €18.5 million for the city’s coffers where it is primarily being used to finance electric street cleaning vehicles.
A framework has yet to be formulated by the tourism board in the Algarve regarding what exactly will be done to improve the region, however, the overall consensus on the matter is that it will have a “strong bearing on the tourism sector and region”.
Written by: Ismat Ara Khan