Talking the Tax Taboo

‍To Tax or Not to Tax is a self-initiated policy paper by Group NAO that reimagines the role of tourism taxation in Denmark. Frustrated by a narrow and often polarised national debate, the report sets out to explore how tourism taxes – when well-designed – can be strategic tools for regeneration, not just regulation. Drawing on global best practice from cities like Austin, Amsterdam, Milan, and Edinburgh, the paper demonstrates how over 30 European countries already reinvest tourism levies into local development, culture, nature conservation, and infrastructure. With fresh economic modelling, it shows that Denmark could generate up to 1.45 billion DKK annually through visitor taxes – 58 times more than what is currently earmarked in the national tourism strategy.

As both author and publisher, Group NAO used this paper to shift the narrative: from fear of lost competitiveness to possibilities for public value creation. The report challenges conventional assumptions and outlines six golden design principles for fair, transparent, and locally meaningful taxation. It positions tourism taxes as a powerful mechanism to support greener mobility, mega events, heritage preservation, and rural revitalisation, ultimately enabling a more resilient and inclusive visitor economy. To Tax or Not to Tax builds on NAO’s ongoing thought leadership in sustainable tourism funding and has sparked conversation and debate across the Nordic region about the future role of taxation in destination development.

Download the paper below - note that it is available only in Danish.

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