Ecuador Slashes Tourism Tax to 8% for Four-Day Holiday Weekend to Boost Visitor Spending

Ecuador's President Daniel Noboa signed Executive Decree 526 on 29 October 2026, reducing the country's value-added tax on tourism services from 15% to 8% for a four-day window spanning the long holiday weekend of 31 October to 3 November. The reduction applies to a wide range of eligible businesses including hotels, restaurants, travel agencies, tourist transport operators, certified guides, theme parks, thermal baths, and convention centres — provided they hold valid tourism registration. For a visitor spending $100 before tax, the total bill falls from $115 to $108, saving roughly $7 or about 6% of the total cost. This marks the fifth time in 2026 that President Noboa has deployed this temporary-tax tool, having previously enacted similar cuts during the April, May, August, and an earlier October holiday period. Ecuador uses the US dollar as its official currency, making savings immediately transparent and accessible to American travellers in particular. The measure is designed to stimulate domestic and international visitor activity during national holidays, boosting turnover for the tourism sector during peak-footfall periods.