One of the most charming vacation spots in Portugal is to increase the tourist tax rate again.

Faro, the capital of southern Portugal’s Algarve region, is home to some of the most pristine golden sand beaches and also has a beautiful historic district where you’ll find the 13th-century Faro Cathedral.

It’s no surprise that Brits have been flocking to this destination in droves for years.

But Faro has now increased its tourist tax from €1.50 per night from March to October (this is high season) to €2 (£1.66) per night. That’s €28 (£23.24) for a fortnight.

And tourists visiting the Algarve region town between November and February will be charged a tax of €1 (83p) per night or €14 (£11.65) for a fortnight.

Tourist taxes are fees usually levied indirectly through accommodation providers or holiday companies and are generally aimed at overnight visitors.

The tax applies to adults aged 16 and over staying in hotels, local accommodation, campsites and caravan parks, with a maximum of seven nights per stay.

Exempted individuals include local and international University of the Algarve students, medical patients, emergency evacuees, essential workers and local residents.

The Algarve, famous for its natural beauty and popular with tourists, has seen steady growth in visitor numbers, with 13.1 million tourists arriving in Portugal from January to August 2024, an increase of 6.7% per year. compared to last year.

Officials hope the tax will help make Faro a welcoming and well-maintained destination for the future.

This news comes after many popular places to stay in the UK are considering implementing similar tourist taxes.

Proposals that could force visitors to pay a tax to stay overnight are before the Welsh Parliament this month.

Under the plans, councils will have the power to introduce a small ‘visitor levy’ to raise funds.

While the Scottish Highlands have announced they could introduce a 5% council tax, a move which could raise more than £10 million a year.

If given the green light, the Highlands would follow Edinburgh to become the second part of the country to introduce the tax.

Edinburgh City Council’s plan for the ‘transient visitor tax’ is set to be introduced in 2026.