The hospitality industry in Estonia could be negatively affected by a tourism tax according to industry representatives. 

Reports in Estonia suggest the government is searching for new revenue streams to support local infrastructure with a visitor tax being put forward as a likely option. It may be introduced within the next two years and is expected to bring in €4.6 million in its first year.

The structure of the tax would be at a fixed rate per visitor, per night spent in the country. Many cities in Europe currently operate a similar tax.

The chairman of the Estonian Hotel and Restaurant Association, Verni Loodmaa, has said that the pressure the Estonian tourism industry is already experiencing will be increased by such a tax.

Russian tourism makes up a significant portion of the country’s tourism numbers, but has fallen by approximately half in recent years due to a weak ruble and tensions in the region.