Perspective of austrian tourist destinations,
which operate on the premise of a lodging tax.
Best practice: Lech Zürs Arlberg Austria
General statement:
In Austria, the tourism tax system, often referred to as“Ortstaxe”or local tax, operates as a contribution
from visitors staying in accommodations. This tax varies across municipalities and is typically calculated
based on the duration of the stay. Accommodation providers collect the tax on behalf of the local authorities.
The funds generated from the tourism tax are primarily earmarked for local infrastructure, tourism-related
amenities, and cultural initiatives. Municipalities decide on the tax rate and utilization of the funds,
ensuring that the revenue contributes to the improvement of the tourism experience and the overall
well-being of the community.
Travelers are generally informed about the tourism tax upon check-in, and it is essential for them to be
aware of this additional cost when planning their stay in Austria. The system not only helps finance local
projects but also fosters sustainable tourism development by involving visitors in the support of the destinations they enjoy.
Austria has 9 states and each state has its own tourism law. Lech is a community of Vorarlberg. The use
of the funds is simply described with: “The money has to be used for measures to promote and to
support tourism at the community”.
Benefit 1:
To promote the offers of the destination and to support the development of infrastructure, events and
brand, you need a long-term budget due to the reason, that tourism promotion and infrastructure development take time till results are visible.
A long-term budget holds paramount strategic significance in securing sustainable initiatives. It serves as
a financial roadmap, fostering stability and ensuring resources are consistently allocated to sustain
eco-friendly practices, innovation, and responsible resource management. This proactive approach not
only safeguards the environment but also bolsters organizational resilience in the face of economic
fluctuations, reinforcing a commitment to long-lasting positive impact.
Benefit 2:
Lodging tax compared to tourism tax is payed by the guests and so not a classic turnover tax like income
tax.
International guests are used to pay lodging tax, which is especially in the US quite high.
In Austria, lodging taxes are from 2-5 Euros per night and person average. The lodging tax income of
the community of Lech is about 3,5 ‒ 4,5 Mio. Euros p.a. and the tourism board Lech gets each year a
share of 47% out of it (20/21 ‒ 1,641,155 Euro). The actual lodging tax is 4,80 Euros.
Benefit 3:
Lodging tax is a fair system. A win-win situation for the destination and the guests. As more investments
and services are offered, as more positive feedback and the will to pay prices and taxes of customers.
Further, guests are involved in local investments and the development of reputation of “their resort”.
Lodging tax is a fundamental tool for a tourism destination to ensure equitable treatment of all its stakeholders.
By levying lodging taxes, a community can generate the necessary revenue to fund public tourism
services and infrastructure, fostering an tourism environment where all individuals have access to
essential resources and opportunities.
Furthermore, a fair lodging tax system ensures that each individual contributes according to their means,
promoting economical justice.
In essence, the imposition of lodging taxes by a community is a mechanism to uphold the principles of
fairness, equality, and tourism relevant economical cohesion. It establishes a foundation for collective
responsibility and shared benefits, reinforcing the idea that all hotels, restaurants, ski rental companies,
skiing companies etc. have a stake in the well-being of the tourism society they are part of.
Lech Zürs Tourism CEO
Hermann Fercher