Porto executive discusses amendment to the Municipal Tourist Tax regulation

Porto executive discusses amendment to the Municipal Tourist Tax regulation

Woman with glass of Porto wine in Portugal

The Porto City Council’s executive discussed on Monday starting to amend the Municipal Tourist Tax regulation in order to respond to “the demands” of tourism and “the needs” of the population, with the priority of maintaining the city “as a sustainable tourist destination”.

“It is imperative to maintain Porto as a sustainable tourist destination, preventing degradation and excessive occupation, which implies adjustments in tourism management policies, namely in the value of the Municipal Tourist Tax,” says the mayor, Rui Moreira, in the proposal to which Lusa had access today.

In the document, which will be discussed at the public meeting of the municipal executive, Rui Moreira highlights the need to “adapt and revise” the respective regulations in view of the “tourist context and the needs of the local community”.

“The revision of the Municipal Tourist Tax therefore aims to promote an appropriate balance between the promotion of tourism and the protection of the interests of municipalities, in order to guarantee the sustainability of the tourist destination and the well-being of the community in general, preventing degradation and excessive occupation,” he adds.

In 2019, 4.5 million overnight stays were recorded in the city, a figure that increased in 2023 to 5.5 million, reflecting the “recovery of the tourism sector after the impact of the [covid-19] pandemic, as well as an indicator of the city’s continued attractiveness as a tourist destination”.

Porto City Council implemented the Municipal Tourist Tax in 2018 to respond to the growth of activity in the city.

At the end of February, a study commissioned by the municipality pointed to the need to increase the tax from two to three euros in the parishes of the historic center and to 2.50 euros in the remaining parishes of the municipality.

The study, by Professor José Rio Fernandes, from the Faculty of Arts and Humanities of the University of Porto, pointed out that the amount currently charged was low compared to other cities with a higher or similar tourist intensity to Porto.

Despite the conclusions of the study – also drawn up by teachers Luís Carvalho and Pedro Chamusca – no decision was taken by the municipal executive, which at the time referred the decision to the revision proposal that will be discussed on Monday.

At the meeting, Porto’s councillor for the economy said he had “some difficulty in keeping up with the difference between parishes”, noting that the difference in the value of the tax would have to be legally justified by expenses.

The mayor of Porto, Rui Moreira, also said he didn’t agree with the differentiation of fees between parishes and that he would prefer to go ahead with “a single fee of three euros”.

In 2022, the Municipal Tourist Tax generated revenue of 15 million euros, and the municipality estimates that revenue in 2023 will exceed 20 million euros.

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