The tax should raise €2.28 million in its first year, to be reinvested in promoting business travel to the city.
Following through on an overwhelming vote in favour in December, the city municipality of the Lithuanian capital Vilnius is joining a number of other major European cities by introducing a tax on overnight stays.
The tourist tax, in effect from July 1, amounts to one euro per person per night at all accommodation services in the city.
The tax is expected to raise upwards of €2.28 million in its first full calendar year.
The city council claims that the money earned will be invested back into the city’s tourism and meeting industry and infrastructure, and will also be used to further promote Vilnius as a business and leisure destination.
Choice for meetings
Business travellers and meeting planners will be experiencing greater choice over the coming years, with more accommodation options opening up in the Lithuanian capital.
Between 2018 and 2020, 13 new hotels are set to open, many of which will feature business and meeting centres.
Besides promoting places to stay, meet and do business in Vilnius, the municipality says that the new tourist tax is also expected to help fund the development of new direct air routes to the city, improving accessibility for business travellers from across Europe and the rest of the world.