Tourism hotspot or unfriendly city for tourists - Bremen examination
It looks like Bremen's infamous hotel tax, referred to as the City-Tax or bed tax, is getting a boost starting January 1, 2026. Instead of the current 5%, guests staying in hotels, pensions, and vacation apartments will now be charged a whopping 5.5%. But here's the kicker, folks—it's still unclear whether this revenue will actually boost tourism or merely plug budget gaps.
The decision was made during the final week of the Bremen Citizens' Assembly, and Finance Senator Björn Fecker describes the increase as "moderate yet necessary." Proponents argue that it's a common practice in other countries and it's necessary due to Bremen's tight fiscal situation.
However, the opposition is up in arms, accusing the Senate of adding unnecessary burdens to businesses. The CDU is convinced that the rise will worsen an already challenging market, with skyrocketing energy costs, price pressure, and uncertain demand taking a toll on hotel and tourism businesses. FDP faction leader Thore Schäck slammed the Senate for what he calls "sticky-fingered theft" from tourists.
It's not just criticism from the opposition—the tourism industry itself has expressed concerns. The German Hotel and Restaurant Association (DEHOGA) has previously blasted the City-Tax as a business killer. The tax has become a sort of piggy bank for the Senate, especially during tight budget times.
The City-Tax, initially introduced in 2012, originally excluded business-related overnight stays. But owing to a decision by the Federal Administrative Court in mid-2012, business travelers have been paying their share—5%, soon to be 5.5%, more for their stays—since the first quarter of 2024. The trouble is, it's uncertain whether the new income will be used exclusively for tourism purposes.
In essence, the increased City-Tax is all about raising funds to improve tourism infrastructure, offerings, and the overall attractiveness of Bremen for visitors. The money is intended to finance projects that benefit both residents and tourists, contributing to the city's sustainable development and quality of life. However, the specific projects or allocations of the additional revenue haven't been disclosed yet. Typically, city or bed taxes in German cities are used to fund promotions, public space maintenance, cultural programs, and infrastructure improvements for hosting visitors.
- The increase in Bremen's City-Tax, aimed at improving tourism infrastructure and attractiveness, has sparked heated discussions in politics, with the opposition accusing the Senate of burdening businesses and the CDU fearing its detrimental impact on the already challenging market.
- The German Hotel and Restaurant Association (DEHOGA), along with the FDP faction leader Thore Schäck, have criticized the Senate's decision to raise the City-Tax, viewing it as a potential business killer and a source of unnecessary financial strain on hotels and tourism businesses.
