Norway to finally introduce its tourist tax
The Norwegian government finally expects to have a charge on visitors in place by summer 2025 if it gets its way.
The proposal is currently in the consultation phase, with feedback due by January 3rd, 2025.
After this, tweaks may be made to how it will work, or the proposal may remain the same before being subject to a vote in parliament.
The proposed tax allows municipalities to charge up to 5 percent of accommodation costs. For example, a night in a hotel costing 1,500 kroner would include a 45 kroner tax.
This charge would apply to hotels, campsites, Airbnb rentals, guest harbours, and even cruise ships.
The money will be made available to local authorities and can’t be spent by the state.
Revenues from the tax must be used for tourism-related public goods, such as maintaining local infrastructure like roads and hiking paths, funding public toilets and waste management services, or supporting environmental conservation efforts.
There has been some mixed reaction to the tax, as some local authorities believe the challenges they face are due to too many day visitors rather than overnight guests.
READ MORE: Everything you need to know about Norway’s planned tourist tax
Flight prices likely to increase
Norway’s state-owned operator Avinor has endured financial turbulence in recent years, so the government will raise the taxes that airlines pay Avinor.
Airlines have warned that this will mean higher fares for passengers.
“What has been proposed is history’s largest overall tax increase for the aviation industry, which will mean increased flight prices and poorer flight offers if it is carried out,” Erik Lahnstein, head of the aviation arm of the Confederation of Norwegian Enterprise (NHO), told business news publication E24.
Norwegian Air Shuttle and SAS have warned that the number of routes could be slashed.
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This will make getting to and from Norway harder and more expensive.
Norway’s Ministry of Transport will make the final call on how much airline taxes and fees will be raised before the new year.
The government will lower the air passenger tax that travellers pay to the state. However, this modest cut is unlikely to offset the cost of increased ticket prices.
EES and ETIAS changes
After several delays, Europe’s Entry / Exit System (EES) may finally be introduced in 2025.
The Entry/Exit System (EES) is an automated IT system that will register non-EU nationals when they enter and exit the Schengen Area. The aim is increased security and to avoid stays exceeding the 90 days in a 180-day period rule.
The EES is for the external borders of the Schengen Area – so if you are travelling between Norway and Sweden, France or Austria, nothing will change.
The introduction of the EES will be followed by the implementation of the European Travel Information and Authorisation System (ETIAS), which will require visitors from visa-free countries to register and pay a €7 fee before travelling to the Schengen Area.
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The last official launch date of November 10th, 2024, was delayed as several countries said they were not yet ready for the change.
Travellers in Oslo to face public transport disruption
Tourists travelling to Oslo will need to be aware the metro system in the capital will face significant disruption in 2025.
Key lines getting passengers to beauty spots like Frognerseteren or Sognsvann will face disruption at various times of the year. It could also make travelling to and from the national stadium during international fixtures more difficult.
Bus for metro replacements will be in effect on lines that are disrupted.
Major tourist road won’t reopen before July
Norway’s iconic Trollstigen road was open for less than two weeks in 2024 before being closed for the year.
Around a million people use the road, famous for its 11 hairpin turns, every year.
Officials in Møre og Romsdal County hope the road will be opened on July 14th, 2025.
Given how many people add the road to their itinerary when planning road trips, saving any planned journeys for a couple of weeks after the tentative open date may be prudent in case of delays.
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Krone could strengthen against the euro
The weak Norwegian krone has been a double-edged sword for travel as it has made trips to the notoriously expensive country cheaper for tourists but made travel abroad much more expensive.
The bank HSBC expects the Norwegian krone to strengthen against the euro during 2025 as interest rates in Norway are expected to be higher than in other countries.
However, many analysts in Norway find it unlikely that the krone will perform a full reversal on the currencies it has lost ground on as the conditions which made the krone more valuable no longer apply.
READ ALSO: Why the Norwegian krone’s weakness remains a ‘mystery‘
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