“More money for the regions, higher prices in hotels”
The resort tax, the experiment with the introduction of which in 2018 did not justify itself, the Ministry of Finance proposed to replace with a tourist tax. The idea is good — to create an additional source of funding for regions developing tourism. However, technically and in essence, these two fiscal practices differ fundamentally: if the tax was levied on tourists, then the tax will be paid by the hotels. Which, in turn, will include it in the cost of living. This means that the same Russian consumer will pay for the banquet. The whole question is price.
The innovation appears among the amendments to the bill on “improving the tax system” submitted by the government to the State Duma. As the Ministry of Finance notes, municipalities will have the right to independently introduce a tourist tax on their territory and determine its rates. The rate will increase gradually — from 1% of the cost of living in 2025 and beyond, adding one percentage point per year, but not more than 5%, starting in 2029. At first, it will be “just over 65 rubles per room per day,” the Ministry of Economic Development reported. The department proposed making the number of hotel rooms the tax base. Thus, we are talking about a purely local tax: the money will go exclusively to the development of tourism infrastructure in the regions, and not for other purposes.
As for the resort fee, introduced under experimental conditions for 2018-2024 in the Krasnodar, Stavropol, Altai territories and St. Petersburg, this idea frankly failed — for several reasons. Society met it with hostility: according to opinion polls, up to 78% of respondents expressed complete reluctance to pay a separate “leisure tax,” even in the amount of 100 rubles per person. In addition, an administration problem arose: since millions of people vacation at Russian resorts every year (including “savages”), keeping track of everyone turned out to be a technically impossible task. Moreover, the measure created the ground for all sorts of abuses, including on the part of hoteliers. Some began to underestimate the number of guests and conduct collections “bypassing the cash register.”
“The resort fee collected from tourists is complicated, first of all, in administration,” says Denis Astafiev, founder of the investment company SharesPro. – The tax addressed to hotels simplifies the system, makes it much more transparent, since the collection will be carried out from a smaller number of taxpayers, and also from legal entities with their increased liability. It will become easier to control revenues and predict their volume. At the same time, the hotel business may face increased costs, which will lead to higher prices for services for tourists. In general, I think the decision is justified, but it is necessary to take into account the possible negative consequences for small businesses.”
The state is seeking to simplify the tax collection mechanism by shifting the burden to hotels rather than tourists. And most importantly, municipalities will receive an additional source of funding to improve tourist attractiveness, says Artem Deev, head of the analytical department at AMarkets. However, according to him, many experts consider the decision controversial, since hoteliers will likely have to increase room prices to compensate for costs.
“This has both its pros and cons,” notes Deev. – The advantages include that hotels have all the necessary infrastructure for accounting and paying taxes. The tourist tax, in turn, is a stable source of funding for the regions, in contrast to the resort tax, which depended on the number of tourists. Funds can be used to improve roads, create new parks, museums and other tourist sites. New jobs will appear in hotels, restaurants, and travel agencies. The risks are also obvious: hotels will be forced to raise prices, reduce staff, or refuse to invest in development. Some regions may set higher tax rates, which will make holidays in these places less attractive.”
The initiative is good, believes Pyotr Gusyatnikov, senior managing partner of PG Partners. Firstly, this does not discourage tourists, since they will not have to pay any additional fees. Even small amounts can become a psychological barrier for them: many people trust only “all-inclusive” prices, and no surprises are expected. Secondly, collecting money from hotels is much easier than from vacationers, as well as keeping records. In any case, the tourist tax seems to be a more transparent and psychologically comfortable replacement for the resort fee.