Tourist Tax Targets Growing Tourism
As of today, Funchal has implemented a €2 tourist tax per night for visitors staying in hotels and local accommodations. Mayor Cristina Pedra projects the tax will generate €1.6 million by the end of the year, addressing the rising number of tourists visiting the city.
Cruise Passengers Included in 2025
From January 2025, the tax will extend to passengers from cruise ships docked at Funchal’s port. The fee is capped at seven nights, with children under 12 exempt. The annual revenue could reach between €10 and €13 million.
Addressing Tourism Pressure on City Infrastructure
Mayor Pedra noted that Funchal’s tourism numbers rose from 1.6 million in 2019 to 2.1 million in 2023, increasing pressure on the city’s infrastructure. She emphasized that Funchal’s €2 tax remains one of the lowest in Europe.
Revenue to Fund Key City Projects
The revenue will be used for urban cleaning (€302,000), road repairs (€550,000), garden maintenance (€336,000), and cultural events. Local hotels will receive 2.5% of the funds. By January 2025, all 11 municipalities in Madeira are expected to implement a similar tax.
Source: Jornal da Madeira
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