National Council’s decision on Monaco’s new “Tourist Tax”

After discussions with the Government, the National Council have set the new “Tourist Tax” amounts. According to a recent press release by the National Council, the amounts should “preserve the attractiveness of our hotel establishments”.

The “tourist contribution” system (the equivalent of France’s “tourist tax”) was decided upon late last year (as seen in a Ministerial Decree published on 20 December 2023). However, the amounts initially set by the Government were considered too high and were immediately debated by National Council members. Taking into account the economic interests of the State, a compromise was reached using tourist taxes charged in surrounding municipalities in the Riviera as a comparison.

After having heard from various associations and directors of hotel groups, the elected representatives of the National Council requested that the Government apply a more attractive approach by dividing the initial amounts in half.

For 2024, the following rates have been set:

– €7 per person per night for 5-star establishments, namely the Hôtel de Paris, the Hôtel Hermitage, the Hôtel and the Résidence Métropole (compared to €14 initially planned);

– €5 per person per night for 4-star establishments, namely the Monte-Carlo Bay Hotel & Resort, the Fairmont Hotel and Residence, the Port Palace Hotel, the Le Méridien Beach Plaza Hotel and Residence (compared to €13 initially planned);

– €3 per night for 3-star establishments, namely the Ambassador Hotel, the Miramar Hotel, the Novotel Hotel, the Colombus Hotel and Residence (compared to €10 initially planned);

– €2 per night for 2-star establishments, namely the Hôtel de France (compared to €5 initially planned);

– Symbolic €1 per free night, payable by hotels, for journalists and influencers and any professional promoting Monaco.

In his response to the report on Bill No. 1048, Jean Castellini, Government Advisor Minister of Finance and National Economy assured in a Public Session that, “the amounts applicable in 2024, (the year when the system will come into force) would be significantly lower than the ceiling of €15 set per night.”

The National Councillors insisted that his successor, Marco Piccinini, respect these commitments in order to preserve the interests of all parties.

The establishment of the tourist tax, which only impacts non-residents, resulted from a vote by the National Council on 29 June 2023 in bill no. 1048, which “contained various tax provisions”. The application of these various measures is expected to generate several million euros in revenue for the State per year. According to elected officials, the new revenue for the State will guarantee a balanced budget and replenish the Constitutional Reserve Fund, which had been drained by 103 million euros during the COVID-19 crisis.