Canadians visiting world's happiest country this summer will need a bigger budget

Travel continues to get pricier, and Canadian tourists planning a trip to Finland in the coming years could soon face higher costs.

Finland is known for its pristine nature, the northern lights, and its sauna culture. It also ranks as the world's happiest country for the ninth year in a row. However, by 2028, Canadians may have to pay extra to visit.

That's because the Finnish government is considering introducing a tourist tax as the country grapples with an increasing number of visitors. On Friday, the Ministry of Finance stated that, based on a preliminary report, it has begun drafting legislation for a tourist tax.

How much more will you have to pay?

If approved, this means that anyone staying at a hotel or temporary accommodation will have to pay the tax. And according to the government, it would apply to anyone booking an overnight stay.

"In order for different forms of accommodation to be treated equally, the tourist tax would apply to stays by both domestic and foreign travellers and to all forms of temporary paid accommodation," reads the statement.

The tax, the first of its kind in Finland, is optional for municipalities.

"A tourist tax would give municipalities that are popular tourist destinations a way to collect more income from tourism," said Minister of Finance Riikka Purra. "The goal is to create a simple and clear tax model. Municipalities themselves would decide whether to adopt the tax."

As of now, the amount hasn't been decided; however, the tax is expected to be a "moderate percentage" of the cost of accommodation, similar to other European countries. Starting on July 1, Norway will also implement a three per cent visitor contribution tax, which was approved in 2025.

Why does Finland want to charge a tourist tax?

Revenue generated from the tax would help municipalities cover the costs that they incur from tourism.

Helsinki Times reports that Finland saw some of the highest increases in the number of foreign travellers compared to other European countries.

Overnight stays in accommodation establishments reached 7.2 million, marking a 12 per cent increase compared to the average three per cent increase across Europe. According to the tourism organization Visit Finland, over the past two years, most visitors have come from abroad, while domestic tourism has declined.