How Russia’s Tourist Tax Could Change: Industry Proposals

Why the tourist tax is being discussed now

On 1 January 2025 Russia introduced a new levy that replaced the old resort tax, which had applied only in a handful of regions. Since then the tax is collected from accommodation providers rather than directly from guests. After two years its structure has drawn the attention of industry players, and at the start of 2024 the Russian Union of the Tourism Industry, the Russian Hotel Association and the Federation of Restaurateurs and Hoteliers sent their reform ideas to the Minister of Economic Development.

Three core ideas of the reform

1. The tourist pays directly

Today the legal payer is the hotel or another operator that gathers the tax and forwards it to the budget. The proposal’s authors argue that it would be clearer if the tax appeared on the guest’s bill as a separate line item. In that case the hotel would act only as a conduit, and the responsibility for payment would shift to the client. Travelers would see instantly how much they are paying in tax, and the exemption process for privileged groups would become simpler.

2. Fixed amount instead of a percentage

The current model calculates the tax as a percent of the room rate. The plan calls for a step‑up: 2 % in 2026, 3 % in 2027, 4 % in 2028 and 5 % from 2029 onward. With a percentage‑based calculation the tax rises together with accommodation prices, and those prices often go up because of higher staff costs, utilities and loan servicing, not because of higher profit. The suggestion is to switch to a fixed ruble amount per person per night. Such a rate would be independent of price swings, making the burden predictable for both hotels and tourists.

3. Investment deduction for hotel upgrades

The third proposal would allow a part of the paid tax to be written off if a hotel invests in major repairs or reconstruction. According to the initiators, this mechanism would turn the tax into a tool for modernising the hotel stock rather than just a revenue stream. The deduction would be available to properties that carry out substantial upgrades of engineering systems and room inventory.

How exemptions will change

At present tax exemption (for veterans or other privileged groups) is processed by the hotel after check‑in, which sometimes causes delays. Under the “tourist pays” model the right to exemption could be confirmed at registration, and the hotel would immediately reflect it in the bill. That would streamline the process for guests and staff alike.

What it means for travelers

• Transparency – the receipt will show a separate tax line, so you see the amount right away.
• Stable costs – a flat rate removes the surprise of higher accommodation costs caused by a rising tax burden.
• Simplified exemptions – eligibility is checked at check‑in, no extra paperwork needed.

What it means for hoteliers

• Less admin work – the hotel stops being the legal payer, easing bookkeeping.
• Predictable outflows – a fixed rate lets you forecast tax payments more accurately.
• Investment incentive – being able to deduct part of the tax when carrying out major renovations makes property upgrades more attractive.

Implementation outlook

The suggested changes represent the first major attempt to rethink the new tax’s structure less than two years after its launch. They are still being debated in the government, but backing from the biggest hotel chains and operators signals serious intent. If adopted, the reforms could become a model for other regions where tax schemes have not yet caught up with market realities.

How to prepare for possible changes

If you are planning a trip to Russia in the coming years, expect that accommodation costs may include a separate tax line. When you book, ask how the hotel calculates the tax and whether it will appear on the invoice. For business owners, it now makes sense to assess how a flat rate and a potential deduction could affect your hotel’s financial model.

Bottom line

Russia’s tourist tax is under active discussion. Shifting the burden to the traveler, moving to a flat amount and introducing an investment deduction are three directions that could make the system more transparent and predictable. The changes are expected to simplify life for both tourists and the hotel industry while encouraging upgrades of hotel assets. The final decision is still pending, but industry proposals already set the direction for future tax policy in tourism.

Based on materials from: trn-news.ru.