RST Proposes Mandatory Tourist Tax for All

New RST Initiative on Tourist Tax Reform

The Russian Union of Travel Industry (RST), together with the Russian Hotel Association (RGA) and the Federation of Restaurateurs and Hoteliers (FRIO), has introduced an initiative to change the tourist tax system in Russia starting in 2025. The proposal calls for abolishing the minimum tax amount of 100 rubles per day of stay and introducing a mandatory levy for all tourists.

Instead of a fixed minimum rate, it is proposed to set an upper limit on the tax at no more than 1% of the turnover of hotels and other accommodation providers. This measure is aimed at increasing transparency and fairness in the taxation of the tourism sector.

Current System and the Need for Reform

At present, the tourist tax in Russia has a minimum rate of 100 rubles per day, which applies to most hotels and guesthouses. This fixed amount often does not reflect the actual income of businesses and creates a burden on smaller accommodation facilities.

According to RST data, removing the lower limit and introducing a 1% turnover cap will allow for more flexible regulation of the tax burden, especially for large hotel chains with high turnover. This change will ensure a balanced distribution of financial obligations among all market participants.

Impact on Tourists and the Hotel Industry

The introduction of a mandatory tourist tax for all guests in the country, effective January 1, 2025, will affect both foreign and domestic tourists. Preliminary estimates suggest that the average tax amount for guests at large hotels could range from 150 to 300 rubles per day depending on turnover.

For hotels and other accommodation providers, the new taxation system may improve financial discipline and encourage service quality enhancements. However, some industry representatives warn of a possible rise in accommodation prices due to the additional fiscal burden.

The Role of the Federal Tax Service and Legislative Outlook

RST has sent a letter to the Federal Tax Service (FTS) with detailed calculations and proposals regarding the reform of the tourist tax. The agency is currently reviewing the initiative and preparing recommendations for potential amendments to tax legislation starting in 2025.

The legislative framework regulating the tourist tax sets clear rules for its collection and distribution. The reform will help increase budget revenues and allocate funds towards the development of tourist infrastructure and services across Russia.

Industry Associations’ Reactions and Future Expectations

In addition to RST, the Russian Hotel Association and the Federation of Restaurateurs and Hoteliers support the initiative for a mandatory tourist tax with an upper limit. They believe this will help streamline financial relations between businesses and the government.

Experts predict that implementing the new taxation system from 2025 will enhance the investment appeal of the tourism sector and create conditions for sustainable growth of domestic tourism in Russia.

Conclusion: The tourist tax reform, requiring mandatory payment from all tourists with a 1% turnover cap, is expected to take effect in 2025, fundamentally changing the financial mechanisms of Russia’s tourism market.