Sweden to remove air ticket tax in 2025 to boost tourism

07-09-24

The Swedish government has announced that from July 2025 it will abolish the tax on airline tickets. The move comes in an attempt to revitalise its tourism sector and make the country more competitive on the international stage, both by attracting foreign tourists and encouraging domestic travel.

The airline ticket tax, in place since 2018, has been the subject of constant debate in Sweden. Although it was introduced as a measure to reduce greenhouse gas emissions and mitigate the environmental impact of air travel, many in the tourism and business industry have argued that the levy discouraged travel to and from Sweden, negatively affecting the tourism economy.

With the removal of the tax, airlines will no longer be obliged to pass on this additional cost to passengers, resulting in more competitive prices. This, according to experts, will encourage more people to travel, both internationally and domestically, strengthening the country's air connectivity and improving its attractiveness as a tourist destination.

The Swedish tourism sector has experienced ups and downs in recent years, influenced both by the pandemic and competition from other European destinations. By removing the tax, Sweden is expected to attract more international tourists, who will be able to find more affordable airfares. In addition, the measure could stimulate domestic travel, helping to encourage Swedes to explore their own country rather than seek destinations outside Europe.

Sweden's Minister for Infrastructure, who led the initiative, said: ‘It is essential to strengthen the competitiveness of our tourism sector at a time when global tourism is in full recovery. In a context where European countries are struggling to attract more tourists, the removal of the tax is seen as a key measure to put Sweden on the world tourism map.

Despite general support from the tourism industry, the measure has not been without its critics, especially from the environmental side. Environmental organisations have expressed concern that the removal of the tax will undermine efforts to combat climate change by encouraging more flights and, consequently, increasing CO2 emissions.

However, the government has argued that the Swedish airline industry is already working on a transition to more sustainable transport, with the aim of reducing emissions through sustainable fuels and improvements in aircraft efficiency. In the long term, they claim that removing the tax does not contradict the country's climate commitments, but seeks to balance economic growth with environmental sustainability.

Sweden is not the only country that has reconsidered its fiscal approach to air transport in response to developments in the tourism sector. In recent years, other European countries have relaxed or eliminated similar taxes to encourage post-pandemic recovery. For example, the Netherlands and Germany have implemented temporary measures to reduce air travel costs, striking a balance between economic revival and environmental commitment.

However, Sweden's decision is notable for its finality and timing, which could mark the beginning of a new trend in Europe, where governments may be tempted to follow suit to stimulate tourism in their own countries.

The elimination of the air tax in Sweden offers a window of opportunity for airlines and the tourism sector in general, but also raises questions about how the country will manage the balance between economic growth and sustainability. In the short term, we are likely to see an increase in tourist flows and increased activity at Swedish airports, which will boost the tourism economy.

In the longer term, the challenge will be to find technological and logistical solutions to sustain this recovery without sacrificing Sweden's climate commitments. In a context where travellers are increasingly aware of their carbon footprint, the country will need to redouble its sustainability efforts if it is to continue to attract more responsible and environmentally conscious tourism.