Why Do Many Countries Charge a Departure Tax?

You might not realize it if it’s included in the price of your airfare, but many countries raise funds for infrastructural improvements and airport facilities through a charge broadly known as a departure tax. Let’s take a look at why it’s needed and how to recognize if you’ll have to pay a departure tax in the fine print of your ticket’s terms and conditions. 

What Is a Departure Tax?

A departure tax is a fee levied by many countries on international travelers leaving their borders. This is to cover certain costs relating to airport infrastructure and services, such as noise reduction initiatives, security, customs, air traffic control, and immigration facilities. Some countries may also direct departure tax revenue to fund tourism-related endeavors, and some types of departure taxes may apply to all passengers, even domestic travelers. 

Where such a tax exists, the amount charged can vary considerably, and it can be raised frequently as a result of changing policy. For instance, a higher price might be set if a government wanted to boost its green credentials. However, some countries — including Ireland, the Cayman Islands, and the UAE — don’t impose a departure tax at all, especially if policymakers fear that levying such a fee would be detrimental to tourist numbers.

Changes to Departure Tax Payment Procedures

Japan was the first country to introduce a departure tax, when Tokyo Narita International Airport opened in 1978. Back then, the payment of such taxes often needed to be made at a separate desk within the airport before you could check in or drop off bags. This often caused frustration for passengers due to the increased queuing time, which added to time it could take to reach the gate. 

Today, for the most part, the process is quicker, thanks to departure taxes becoming part of airline ticket prices, meaning there’s usually no need to pay it at the airport. However, there are a few rare exceptions, such as flights leaving from Costa Rica or Jamaica on certain airlines or to specific destinations. 

How To Find Out if a Departure Tax Is Included in Your Ticket

When you book a flight online, you’ll see a section on the booking page or a link that takes you to a detailed list of fees and charges. However, even if your ticket includes a departure tax, it may not be listed as such. Instead, it may be described as an Airport Improvement Fee (charged to both domestic and international travelers leaving Canada), an Air Passenger Duty (for all travelers from U.K. airports, though domestic passengers pay less), or a Passenger Movement Fee (Australia), to name a few examples. Additionally, other charges listed — such as a boarding tax, security charge, and baggage handling fees — may form part of a departure tax.

When Departure Taxes May Influence Your Routing

If you’re not flying nonstop, you may want to pay close attention to the airport you choose for your international layover. Where the departure tax is set at a relatively high rate, this might make your airfare more expensive, so it’s worth playing around with various options at the time of booking. To get the best deal as you compare flights, it’s a good idea to stay flexible about the route and airline you fly with.

Departure Tax Examples Around the World

Scotland

The U.K.’s Air Passenger Duty (APD) is among the steepest in the world, particularly if you’re traveling in premium economy, business class, or first class. However, there’s a workaround, nicknamed the “Inverness Immunity,” which might be convenient if you hope to include Scotland in your plans. The Scottish government’s protective measures for the Highlands and Islands mean that travelers leaving these northerly and outlying parts of the country are exempt from paying the APD. So, if you begin your journey home from Inverness on British Airways via London Heathrow, you could pay no APD at all.

Japan

Japan’s “Sayonara Tax” is currently 1,000 yen, which is less than $7 USD. The charge was introduced in 2019 in the hope of raising as much as 50 billion yen ($339 million) to improve tourist facilities. However, with record inbound tourism numbers, talks are underway to raise the country’s departure tax to 5,000 yen. Authorities believe this could help combat overtourism issues in the nation’s most popular spots and bring the cost of Japan’s departure tax closer in line with that of other countries such as Australia, whose flat rate Passenger Movement Charge amounts to $70 AUD (about $46 USD).

Costa Rica

Passengers departing from Costa Rican airports have to pay a tax of $29 USD. The country started the process of transitioning to automatic departure tax payments in 2014, so these days it’s usually included in the price of your ticket if your flight is with carriers such as Delta, JetBlue, Southwest, and United. You’ll see it listed as a boarding tax and separate baggage inspection fee. 

Brunei Darussalam

In some parts of the world, departure taxes vary according to your destination. For example, if you’re flying from the Southeast Asian country of Brunei Darussalam to a fellow member of the Association of Southeast Asian Nations (ASEAN), you’ll fork out $12 BND ($9 USD) per person. Traveling outside of that region, you’ll pay a fee of $20 BND ($15 USD), which is set by the Department of Civil Aviation of Brunei Darussalam. Until relatively recently, travelers had to pay in cash, but the tax has now been absorbed into the ticket price. 

St. Vincent and the Grenadines

Visitors to this pretty Caribbean nation may choose to travel to the island of Bequia, the largest of the Grenadines. On departure, travelers often hop on the ferry back to St. Vincent, but some catch charter flights with Grenadine Alliance or Mustique Airways bound for destinations such as Barbados. Those leaving by air who stay for more than a night will need to pay a departure tax. Travelers over the age of 12 currently have to make a payment of $150 ECD (about $56 USD) per person at the airport after they check in.