The Tax Barometer is composed of four trip elements: lodging, car rental, meals, and airport arrival and departure.  Each element of the trip is priced according to a standard purchase by a hypothetical "WTTC Traveler" in each destination.  This trip includes the purchase of four nights' lodging, four days' car rental, twelve meals, and one set of international arrival and departure airport charges. Taxes imposed on these purchases are then identified, recorded, and developed into a sector index.  Next, these elements are aggregated into a composite index for the destination, based on the average cost of each element included in the standardized trip.  If you would like more information on the development of the Tax Barometer, please refer to our research methodology.

Rank

Total tax $ for 5-day/4-night trip: $219.59 38
Percentage of total item cost: 16.32% 29
Overall tax index:

110

18

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Helsinki.  The second item (percentage of total item cost) indicates what percentage of the total bill is devoted to taxes.  The last item (overall tax index) reflects the cumulative change in the amount of tax paid in U.S. dollars between June 1994 and June 2002.  The rankings show how Helsinki compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Helsinki currently has an overall Tax Barometer index of 110, indicating an 10% increase in travel-related taxes since June 15, 1994.  This change can be attributed to increases in the car rental, lodging, and air passenger sectors; the tax rate on restaurant meals has remained at its 1994 level.  For a five-day, four-night trip to Helsinki, travelers can expect to pay approximately $220.00 in tourism-related taxes, a total that ranks as the 15th highest among all surveyed destinations, and the ninth highest among the eighteen European destinations. 

 

Rank

Average price for 4-day rental (mid-size) without taxes: $335.92

-

Airport access fee: €20.00
Value added tax (VAT): 22.00%

-

Total charges for 4-day rental with taxes: $433.75 -
Total tax $ for 4-day rental: $97.83 51
Percentage of total car rental cost: 22.55% 35
Car rental tax index: 111 19

( in rank column indicates a tax increase in Tax Barometer No. 11)

Summary:
 A four-day, mid-sized car rental in Helsinki will cost a visitor approximately $98.00 in taxes, the second highest total among all surveyed destinations.  The tax total has increased 11% since 1994, the result of a two increases in the airport access fee, which is now levied at a rate of €20.00.  The 11% increase is the fifth lowest among the 38 destinations which have increased their car rental tax rates since 1994.

 

Rank

Average price for 4-nights lodging without taxes: $466.67

-

Value added tax (VAT): 8.00%

-

Total charges for 4-nights lodging with taxes: $504.00

-

Total tax $ for four-nights: $37.33

13

Percentage of total hotel room cost: 7.41%

16

Hotel tax index: 133

46


Summary:  Hotel taxes have increased 33% in Helsinki since 1994, the sixth highest such increase among all surveyed destinations and the highest increase among those destinations in Europe.  This increase can be attributed to 2.0% increase in the Finnish VAT on lodging, which was raised from 6.0% to 8.0% in 1998.  Despite this increase, the total amount of taxes paid during a four-night hotel stay remain relatively low; the approximately $37.00 collected in taxes ranks as the 13th lowest overall and the fourth lowest among the eighteen European destinations included in the Barometer.

 

Rank

Average price for 12 restaurant meals without taxes: $334.31 -
Value added tax (VAT): 22.00% -
Total charges for 12 meals with taxes: $407.86 -
Total tax $ for 12 meals: $73.55 49
Percentage of total restaurant meals cost: 18.03% 49
Restaurant tax index: 100 5

Summary: 
The tax rate on restaurant meals remains at its 1994 rate of 22.0%.  For 12 meals, visitors can expect to pay approximately $74.00 in taxes, a total that ranks as the fourth highest among all surveyed destinations and the third highest among European destinations.  Over 18% of the total restaurant bill is devoted to taxes, a total that ranks as the fourth highest among all surveyed destinations.

 

Rank
International passenger fee: €11.10 -
Total tax $ for international arrival and departure: $10.88 10
Percentage of total trip cost: 0.81% 8
Air passenger tax index: 116 9


Summary:  Helsinki's sole international airline tax, the international passenger fee, is currently levied at a rate of €11.10, a 16% increase from its base index value of FIM 57.00.  Helsinki's total of $10.88 in air passenger taxes ranks as the 10th lowest amount overall, and the fourth lowest among European destinations.

 

Barometer No. 2: The international departure tax was lowered from FIM 57.00 to FIM 56.00. 

Barometer No. 6: The VAT rate on lodging was increased from 6.0% to 8.0%. 

Barometer No. 8: The airport access fee was increased from FIM 70.00 to FIM 100.00, affecting car rental rates. 

Barometer No. 9:  The international departure tax was increased from FIM 56.00 to FIM 57.00 beginning in January 2000.

Barometer No. 10: The international departure tax was increased from FIM 57.00 to FIM 66.00, effective 1-1-01.

Barometer No. 11: The airport access fee on car rentals was increased from FIM 100.00 to €20.00.

 


 


 

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