2024-05-15
Authors
Tom Koch (born Schössler)
is Professor of General Business Administration at Emden/Leer University of Applied Sciences. He previously worked for many years in commercial management positions in the cultural sector and has conducted research on admission prices in the cultural sector.
Venice’ entry fees
5 Euros against Overtourism?
Venice is the first city in the world to charge an entrance fee for its famous old town in order to tackle "overtourism". As of April 25, 2024 day tourists pay 5 euros, initially on a trial basis on 29 selected days until mid-July. After an eleven-day test phase, which lasted until May 5, admission will now be charged on weekends only.
How does the model work?
Tickets can be purchased online and currently also at sales stands near the train station. Visitors receive a QR code, which they present upon request; at the stands a paper ticket is issued. Checks will be carried out at random and there will be no physical access restrictions, i.e. no turnstiles, gates or similar access controls. However, anyone found without a ticket will be fined between 50 and 300 euros (it is not yet clear how the amount will be determined). The procedure is therefore quite similar to that of public transportation.
Only a fraction of visitors will have to pay the entrance fee, as there are a number of exceptions. The measure is not only limited to certain days; numerous groups are also exempt from payment: Overnight guests, employees, residents, spouses and relatives, visitors to sporting events, pupils and students, property owners, invited guests, school trips and several others. These groups still have to book a ticket (in a rather cumbersome process), but do not pay. Night owls are also exempt; the rule only applies between 8.00 am and 4.30 pm.
Will the measure keep tourists away?
Anyone traveling to Venice is unlikely to be deterred by a fee of this amount, especially as an espresso in St. Mark's Square costs more. The organizers are probably aware of this. The measure should therefore be understood less as a deterrent, but rather an attempt to better distribute guests. Bus this is also unlikely to happen with the 5 euros alone. Anyone who wants to go to Venice on a certain day will pay the 5 euros. Weekend trips with cheap airlines are unlikely to decrease as a result. However, Venice has already announced that the amount will increase in the future.
At the moment, it is probably more about testing and gathering data. The fact that visitors are forced to register on the website means that large amounts of data are collected. Potential visitors can use the website for information purposes and the selection of days with admission signals them a crowded city. With the help of targeted campaigns, flexible visitors could possibly be directed to another day. However, this group is unlikely to be particularly large.
Even the much-hated cruises - which actually constitute barely 1 % of all visits - are unlikely to decide against a shore excursion just because their passengers have to buy a ticket. For comparison, a trip on a Vaporetto, the famous water buses, costs 9.50 euros, a day ticket 25 euros.
Why was the measure introduced?
Venice has obviously been suffering from "overtourism" for years, and especially day tourists consume local resources but spend comparatively little money. UNESCO had already threatened to revoke Venice's cultural heritage title if nothing was done to counteract this. The introduction of the entrance fee, which was reportedly discussed in the city council for almost five years, seems to have appeased UNESCO for the time being.
Secondly, Venice needs data to be able to deal with the problem of day tourists, e.g. for maintenance, security or waste collection.
The entrance fee itself currently serves three purposes:
Firstly, if registration had been made free of charge, many people would probably register, whether they already finally know if they would come or not. The price therefore ensures higher data quality because people take registration seriously, and only use it for the days on which they really want to come.
Secondly, the system must be funded. According to those in charge, the 2024 revenue is mainly needed to cover the cost of the software and staff. A smaller amount would have seemed petty, a larger one perhaps excessive. 5 euros therefore seem well chosen for this initial test phase. We should not rule out the possibility of the data being used later to control prices in a demand-oriented way. Similar to air fares: Popular days may then become more expensive than unpopular ones. However, it is unclear as to how high the prices have to be in order to generate actual distribution effects, if that is really the aim. Imagine a couple from the USA or Japan taking a once-in-a-lifetime trip to Europe. Even 50 euros won't be a barrier. In the world's major theme parks, visitors easily pay several hundred euros per person for a day. Locals express the danger that visitors to Venice will then have an attitude of entitlement similar to that of an amusement park, and that the city will suffer even more. The idea does not seem entirely unfounded.
Thirdly, Venice has attracted enormous attention with the debate. The media are full of the topic, creating a certain awareness of the issue of overtourism. No marketing budget in the world could have provided Venice with this level of visibility.
So, is the already expensive city just trying to make a profit?
Those responsible say that the measure is not intended to generate profit. In fact, the figures suggest that it is unlikely to be a huge sum. Before the start of the test, the city was expecting revenue of 13 million euros a year. After the initial eleven-day test phase, 195,000 tickets resulted in 975,000 euros in revenue, which surpassed expectations. Reliable figures will probably only be available in retrospect, but based on the statistics to date, this amount seems plausible: Venice has just under 20 million visitors who come just for the day. According to the data from the first test phase, however, only around 10 to 20 % of them are paying visitors, which would amount to two to four million paying visitors per year. If it turns out to be the estimated 13 million euros, perhaps even a little more, this is a considerable sum, but after subtracting the additional costs for the system and controls, it is probably not a significant source of revenue for a city of this size.
Can such a measure also be expected in other countries?
There are already legal concerns about the measure, so it is quite possible that the entry will be overturned.
Something similar has at least in Germany not yet been discussed. In large cities, it would also be difficult to implement in terms of area. The problem of day tourism is also not as drastic everywhere as it is in Venice.
Still, similar mechanisms already exist. Tourist tax, for example, has been around for 500 years. In some places in Germany, it is also as much as 5 euros per day. The North Sea island of Spiekeroog is one such example, and the tax does not deter the 700,000 guests per year. In the high season, it is as full as ever. At many beaches, e.g. in the Baltic Sea or in Italy, one also needs a ticket to visit the beach, similar to a parking permit. The Balearic Islands have an "eco tax" installed, and other destinations also levy additional charges on visitors. Cities such as Barcelona, Rome, Amsterdam or Paris also charge overnight taxes, in Paris they just have been increased by 200 %. What’s new about the measure in Venice is the target group of day visitors, as tourist taxes are usually only charged for overnight guests. It will be interesting to see what else comes of this.
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