The Turku Chamber of Commerce represents a broad spectrum of the business community in Southwest Finland, including companies in the tourism, accommodation, restaurant, events, transport, and service sectors. From the perspective of our member companies, the growth of tourism, international competitiveness, predictable regulation, and minimizing administrative burden are essential conditions for the vitality of the region.
Tourism is a significant part of Finland’s service exports and a core component of the country’s service industry. Tourism generates annually approximately €5.5 billion in export-equivalent revenue for Finland. Both Finland—and especially Southwest Finland and the Turku archipelago—still have considerable underutilized potential in tourism, and developing the sector brings vitality and services not only to visitors but also to local businesses and residents.
The possible introduction of a tourist tax would directly affect several member companies as a pass-through tax but would indirectly impact the entire tourism ecosystem through decreased demand, price competitiveness, and investment willingness.
In its statement, the Turku Chamber of Commerce takes a cautiously critical view of a regional tourist tax.
“In our member companies’ view, there is no justification for such a tax in Southwest Finland, and it could weaken the sector’s growth conditions nationwide. The introduction of a tax should not be pursued unless there is clear evidence of its necessity, effectiveness, and allocation, and unless the tax model is simple, fair, and nondistortive to competitiveness from the perspective of companies,” the statement notes.
Finland already has one of the highest total tax burdens in the world, and a tourist tax would be an additional layer. We find it problematic that the tax might apply only to official, registered operators—practically hotels and larger service providers. Should a tourist tax be implemented, it must also cover shortterm private accommodation offered through various digital platforms (e.g., Airbnb).
In the current economic situation, the tourism and events sector is still recovering from the pandemic and rising costs. Introducing a new tax that increases the total price of accommodation may weaken demand, particularly in price-sensitive segments (domestic leisure travellers, group travel, event visitors).
The implementation of the tax involves several issues. The technical execution would be laborious and create various challenges: large operators are located across several municipalities, and taxation may therefore differ between sites; for small operators, a new bureaucratic obligation could create significant additional work. If each municipality can decide independently, the threshold for introducing the tax becomes very low. It must also be ensured that revenues generated by the tax are directed specifically to tourism development, not to improving municipal finances.
The Turku Chamber of Commerce is critical of the possibility that the tax could apply only in certain parts of a municipality or only during certain times of the year.
“Such a model would increase administrative complexity, complicate pricing, and weaken business predictability. If municipalities are given discretion, it must be strictly limited and nationally clearly guided,” the statement notes.
The Turku Chamber of Commerce does not consider a tourist tax timely or necessary in growth centers and urban tourism areas, where attractiveness is based on events, accessibility, and a competitive price level relative to other cities around the Baltic Sea.
“In our view, sustainable tourism development can be supported more effectively through public infrastructure investments, a clear and predictable regulatory environment, and close cooperation with the business community.”
The effects of tourism extend widely to retail, restaurants, culture, and transport. A possible tourist tax must not weaken the competitiveness of Southwest Finland and the Turku region compared to other tourism destinations in Finland or elsewhere in Europe.
The statement is signed by Olli Hakala, Chief Liaison Officer at the Turku Chamber of Commerce and Secretary of the Chamber’s Tourism and Experience Industry Committee, and by Mikaela Savolainen, Chair of the Board of Oy Nord Wine Finland Ltd and Chair of the Committee.