Why in News? In order to control overtourism, Venice, a city in Italy, introduced (on a trial basis) an entry fee for visitors who are coming in to visit the city.

What is the Access Fee? Day-trippers coming to the city are now required to pay €5.Overnight visitors are not charged, nor are residents, commuters, students or children under 14. The entrance fee is only necessary to enter Venice’s historic centre and transgressors risk fines ranging from €50 to €300.

Why has it been Introduced? It’s a first-of-its-kind experiment to lessen overcrowding, promote longer stays and enhance the quality of life for locals. It’s an effort to find a new equilibrium between residents and visitors. It would also aid in gathering basic data and controlling visitor flows.

What has been the Response? A number of residents’ associations have protested, claiming that it is a political ploy and have also brought up privacy-related issues. On its first day, 5,500 individuals purchased tickets, bringing in €27,500, which may just be enough to cover operating costs.

What are the Issues Faced by Venice due to Overcrowding? The city experiences congestion. Venice just managed to avoid being included on UNESCO’s danger list last year due to the harm that overtourism was causing to its fragile ecosystem. Due to mass tourism, the population of Venice’s main island shrank to fifty thousand.

What can be the Potential Impacts of Tourist Tax? It may re-establish a more sustainable relationship with tourists. People operating illegal rentals will need to register legitimately (and pay tax) since anyone staying overnight will have to disclose where they are staying.

Can India Follow Suit? Since tourist taxes can generate good revenue which can be utilised for better infrastructure, it would be a good idea to levy it on India’s cultural and heritage structures that have always attracted lots of foreign and domestic tourists.