“We shall do it now because we have a range of bit investments in hotels," Basílio Horta said. "For 30 years there had been no [new] hotel in Sintra and now we have an investment of more than eight million [euros]. It's a perfectly balanced tax ... and paying this money is essential for the upgrade."

The tax is to be levied at the rate of two euros per room in the town's hotels, per night for up to three nights, the mayor told journalists after a debate on plans to upgrade Sintra town centre.

Horta estimated the total spending on upgrading the town centre at €50 million, with the work to include improvements to the sewage system and buildings, both municipal and private.

He also stressed the importance of having already restricted traffic in the town, ruling out any parking in the centre.

Both Lisbon and Porto already have instituted a tourist tax along similar lines.

Sintra is visited by some 5 million tourists a year but, with local accommodation limited and Lisbon relatively nearby, the vast majority visit the town on a day trip.