Tourism Tax Implementation Begins in Novosibirsk

The Novosibirsk City Council has adopted a resolution to introduce a tourism tax in the city starting from 2025. In a vote held in two sessions, 42 out of 39 deputies approved the tax. This new regulation aims to finance tourism in the city and develop tourist infrastructure.

Tourism Tax Rates and Increase Schedule

Aleksandr Veselkov, Head of the Department of Finance and Tax Policy of the Novosibirsk Municipality, announced that the tourism tax will have a gradually increasing structure. The rate, which will start at 2025% of the tax base in 1, will increase by 1% each year and reach 2029% in 5. It was also announced that the tax rate per day of accommodation will be set at a minimum of 100 rubles. Veselkov stated that this regulation will inevitably be reflected in accommodation costs.

Tax Increase Schedule:

• 2025: 1%
• 2026: 2%
• 2027: 3%
• 2028: 4%
• 2029 and beyond: 5%

With this rate increase, Novosibirsk is expected to allocate more resources to future tourism projects.

Who Will Pay the Tax?

Those who will pay the tax are businesses such as hotels, hostels, sanatoriums, guesthouses, holiday villages, campsites and motels that provide temporary accommodation services to citizens. These accommodation facilities, Rusya It is registered by the Ministry of Economic Development and the tax will be collected by the hotel or facility authorities during the stay and transferred to the local budget.

Exempt Groups

The tourism tax regulation in Novosibirsk provides exemptions for certain special groups. Participants in military operations, families with many children, family members of military personnel and residents of the Novosibirsk region will be exempted from the scope of the tax. These exemptions are aimed at easing the financial burden of special groups and making the tourism tax regulation more equitable.

Tourism Potential of Novosibirsk and New Source of Income

Aleksandr Veselkov stated that according to 2023 data, Novosibirsk is the city that attracts the most tourists in the Siberian Federal District and ranks 10th in the country. 51% of visitors to Novosibirsk come for business purposes, while the rest flock to the city for treatment, education and touristic trips. The income from the tourism tax is planned to be spent on improving the city's tourist routes, landscaping and projects that will increase its tourist appeal.

Statements by Mayor Maksim Kudryavtsev

Novosibirsk Mayor Maksim Kudryavtsev announced that they are aiming for at least 200 million rubles of tourism tax revenue per year. This revenue is intended to modernize the city's tourism infrastructure and create more tourist attractions. "We will provide the necessary funds to increase the beauty of our tourist routes and our city with this tax," Kudryavtsev said, emphasizing that the new tax revenues will contribute to the city's economic development.

Reaction from the Tourism Sector: “Tax Was Introduced Early”

Svetlana Fomenko, Executive Director of the Novosibirsk Association of Tourism Organizations, said that they found the introduction of a tourist tax premature. Fomenko stated that this tax would increase the cost of accommodation in the city and that some tourists might turn to more affordable destinations. She said that the significant increase in Novosibirsk's tourist flow was due to changes in the calculation method rather than a real increase in visitors. The fact that the new regulation counts visitors, most of whom are transiting, as tourists is cited as one of the main reasons for the increase in tourist numbers.

Effects of Tourism Tax on the City and Expectations

Although it is not yet clear how the tourism tax will affect tourism flows in Novosibirsk, this new source of income is expected to benefit the city. The increased tax revenues are intended to strengthen the city's tourist infrastructure and finance new tourism projects. On the other hand, it is a matter of curiosity how the increase in tourism costs will affect the number of tourists in the city. Since Novosibirsk has great potential, especially in terms of business travel and medical tourism, it is expected that these tax revenues will be used to further increase the city's attractiveness.

Future Tourism Projects of Novosibirsk

The funds to be raised from the tourism tax are planned to make Novosibirsk more attractive to both local and foreign tourists. According to Mayor Kudryavtsev, the aim is to improve tourist routes and modernize the city's historical and cultural sites. With the completion of these projects, the city administration aims to make Novosibirsk one of Russia's leading tourist destinations.

Novosibirsk Plans to Achieve Goals with Tourism Tax

The tourism tax adopted by the Novosibirsk City Council aims to contribute to economic development by increasing the city's income from tourism. The income will be used to renew tourist areas in the city, modernize infrastructure and create new tourist routes. However, the reactions from the tourism sector and the effects of the tax increase on tourist flows are among the factors that need to be taken into account for the implementation to be successful.