Naples Considers Tourism Tax Hike, Industry Warns of Negative Impact
Naples, January 29, 2026 – The city of Naples is considering a proposal to increase its tourism tax by one euro, a move that has met with significant resistance from the local tourism industry. Agostino Ingenito, president of Abbac, the association representing B&Bs and holiday homes, voiced his concerns following a meeting at Palazzo San Giacomo with Naples’ Councilors for Budget, Pier Paolo Baretta, and Tourism, Teresa Armato.
“We were presented with the possibility of a one-euro increase,” stated Ingenito. “We are against it because tourist flows are already decreasing. If the Municipality insists on this, it should only apply to large hotels, not our establishments which attract mid-to-low-target tourist segments.”
Current Tax Structure and Proposed Changes
As of January 1st, the tourism tax for luxury accommodations in Naples was actually reduced. For 5-star hotels, the tax decreased from 6 to 5 euros, and for 4-star hotels, from 5.5 to 5 euros. However, for other accommodations, including B&Bs and holiday homes, the rate remained unchanged at 4.5 euros.
The possibility of increasing the tourism tax stems from the 2024 Budget Law, which initially allowed for increases for the Jubilee year, with a planned return to a maximum of 5 euros after 2025. However, the Meloni government, through the “Anticipi” decree and the Budget Law, extended the possibility of increasing the tourism tax until 2026, provided that 30% of the additional revenue is allocated to the State. For municipalities within thirty kilometers of Winter Olympic sites, the increase can reach up to 5 euros. For Naples, the maximum limit for an increase is 2 euros.
Naples’ Financial Reliance on Tourism Tax
The temptation to boost municipal coffers is strong for Naples. The current municipal resolution, dating back to 2024, did not foresee the possibility of such an increase, thus keeping rates below 5 euros. However, other major Italian cities are already exceeding these limits. By early 2026, Rome is set to charge 10 euros (due to a specific law), followed by Milan, which hosts the Olympics in 2026, with 10 euros. Florence charges 8 euros, Venice 7.50, and Bologna 7 euros.
In 2025, thanks to government concessions, Naples briefly joined the ranks of cities with higher luxury accommodation taxes, reaching 6 euros per person per night for luxury hotels. The tourism tax has become essential for Palazzo San Giacomo’s finances, generating approximately 23 million euros in 2025 alone.
Despite this significant contribution, Naples’ tourism tax revenue still lags behind other major Italian cities: Venice (41 million), Florence (82 million), Milan (123 million), and Rome (303 million). The tourism tax is a rich source of income that is expected to continue growing for Naples, especially with major events planned for 2026, such as the Louis Vuitton Cup, a preliminary to the America’s Cup.
Government Interest and Challenges
While the Municipality of Naples is tempted by the increased revenue, the Meloni government is also keen to receive its share of the proceeds. The tourism tax generated 5.3 million euros for municipalities on New Year’s Eve alone. Given Palazzo San Giacomo’s financial situation, an increase appears to be more of a certainty than a possibility.
However, the real challenge for Naples will be collecting this revenue in a city and market where illegal operations and tax evasion are at record levels.
Industry Concerns and Future Outlook
The Abbac’s concerns highlight a broader issue within the Neapolitan tourism sector. The potential for a tourism tax increase comes at a time when tourist flows are already experiencing a downturn. This could disproportionately affect smaller businesses and those catering to budget-conscious travelers, potentially hindering the city’s overall tourism recovery and growth.
The debate surrounding the tourism tax underscores the delicate balance between generating revenue for public services and supporting a vital industry that contributes significantly to the local economy and provides numerous jobs. The outcome of these discussions will undoubtedly shape the future of tourism in Naples.
