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: $223.15 40
Percentage of total item cost: 13.11% 18
Overall tax index:

113

22

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Rome.  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 Rome compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Rome currently has an overall Tax Barometer index of 113, indicating a 13% increase in travel-related taxes since June 15, 1994, the 30th highest increase among all 52 surveyed destinations and the ninth highest among the 18 surveyed European destinations.  This change can be attributed to increases in each of the four monitored travel sectors.  For a five-day, four-night trip to Rome, travelers can expect to pay approximately $234.00 in tourism-related taxes, a total that ranks as the ninth highest among all surveyed destinations and the 11th highest among European destinations.

 

Rank

Average price for 4-day rental (mid-size) without taxes: $256.43

-

Airport access fee: 14.00% -
Value added tax (VAT): 20.00% -
Road tax (per day): €1.44
Total charges for 4-day rental with taxes: $346.47 -
Total tax $ for 4-day rental: $90.04 49
Percentage of total car rental cost: 25.99% 43
Car rental tax index: 113 22

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

Summary:  Car rental taxes have risen 13% in Rome since 1994, the 30th highest increase among all 52 surveyed destinations and the 16th highest among the 18 surveyed destinations in Europe.  This change can be attributed to an increase in the airport access fee, which was raised from 12.00% to 14.00% in 2001, and to the introduction of a ITL 2770 per day road tax in 1999.  The road tax was increased to €1.44 in 2002.  The index was also affected by a 1.0% increase in the Italian VAT in the inaugural Barometer.  Tax charges on a four-day mid-sized car rental total approximately $90.00, an amount that ranks as the fourth highest among all surveyed destinations.

 

Rank

Average price for 4-nights lodging without taxes: $811.76

-

Value added tax (VAT): 10.00%

-

Total charges for 4-nights lodging with taxes: $892.94

-

Total tax $ for four-nights: $81.18

35

Percentage of total hotel room cost: 9.09%

18

Hotel tax index: 111

36


Summary: 
Hotel taxes have risen 11% in Paris since 1994, the 17th largest increase among all 52 surveyed destinations and the fifth largest among the 18 surveyed destinations in Europe.  This change can be attributed to a 1.0% increase in the Italian VAT in 1995.  Visitors can expect to pay around $81.00 in taxes for four nights lodging, a total that ranks as the 18th highest overall and the seventh highest among European destinations.

 

Rank

Average price for 12 restaurant meals without taxes: $420.59 -
Value added tax (VAT): 10.00% -
Total charges for 12 meals with taxes: $462.65 -
Total tax $ for 12 meals: $42.06 34
Percentage of total restaurant meals cost: 9.09% 25
Restaurant tax index: 111 38

Summary: 
Restaurant taxes have increased 11% in Rome since 1994, the 15th highest increase among all 52 surveyed destinations and the seventh highest among the 18 surveyed destinations in Europe.  This change, as is the case with car rental and lodging, can be attributed to a 1.0% increase in the Italian VAT on restaurant meals that occurred in 1995.  The approximately $42.00 in taxes collected on 12 restaurant meals ranks as the 19th highest among all surveyed destinations, and the 10th highest among European destinations.

 

Rank
International embarkation tax: €8.26 -
International security charge: €1.81 -
Total tax $ for international arrival and departure: $9.87 7
Percentage of total trip cost: 0.58% 3
Air passenger tax index: 138 16


Summary:  Taxes on international air passengers have increased 38% in Rome since 1994, the 16th lowest increase among all 52 surveyed destinations and the seventh lowest among the 18 surveyed destinations in Europe.  This change can be attributed to four increases in the international embarkation tax and to the introduction of an international security charge in July 2000.  The embarkation tax was most recently increased in March 2001, from ITL 15,500 to ITL 16,000.
 Both taxes were converted to the Euro in 2002.  Tax charges on international arrivals and departures total approximately $10.00, seventh lowest among all surveyed destinations and third lowest among the 18 European destinations.

 

Barometer No. 1: The VAT rate on lodging, car rentals, and restaurant meals was increased a single percentage point and the international embarkation tax was increased ITL 920. 

Barometer No. 4: The embarkation tax was lowered from ITL 15,000 to ITL 14,000.

Barometer No. 5: The embarkation tax was increased from ITL 14,000 to ITL 15,000.

Barometer No. 7: The embarkation tax was increased from ITL 15,000 to ITL 15,500.

Barometer No. 8: A new ITL 2770 per day road tax was introduced, affecting car rental rates. 

Barometer No. 9:  A new ITL 3500 international security charge was introduced, affecting airline passengers.

Barometer No. 10: The airport access fee on car rentals was increased to 14.0%, effective July 1, 2001.  Also, the international embarkation tax was increased from ITL 15,500 to ITL 16,000, effective 3-1-01.

 


 


 

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