Top European holiday hotspot loved by Brits set to introduce a new tourist tax

, a city in the Algarve region of Portugal will start charging overnight visitors €2 (£1.73) per night per person as part of the scheme.

Following in the footsteps of Faro and Vila Real de Santo Antonio, the city of Olhão will become the third destination in the Algarve to introduce a tourist tax for its visitors.

António Miguel Pina, the region's mayor, confirmed that half of the tax would go towards keeping the city clean and increasing security.

The €2 charge will be applied during the high season but the amount will drop to €1 (£0.87) between November and March and is expected to generate €300,000 (£260,175) each year.

Children aged under 16 will be exempt from the tax and the charges will only be applied for a maximum of five nights.

This means holidaymakers won't pay any more than €10 (£8.70) in tourist tax.

Several other holiday hotspots are also considering a new tourist tax too.

Madrid may become the latest holiday destination in Spain to introduce the controversial charge.

Reyes Maroto is standing to become mayor of the Spanish capital and has said she would consider implementing a fee if she was elected.

While tourist taxes are commonplace in Europe, cities across the UK have also started introducing the charges too.

Earlier this year, Manchester became the first city in the UK to tax overnight visitors.

From April 1, anyone who has stayed in a hotel in the city centre has had to pay £1 per night per room.

And other parts of the UK have also suggested they could follow suit including Bath, Oxford, and Wales.

Meanwhile, Edinburgh could soon be charging tourists £2 a night to stay.

And here are some other holiday hotspots where Brits have to pay a tourist tax.