Is it back to the drawing board for the new Balearic government´s tourist tax, even before it has been introduced? The coalition government has decided to put the controversial levy on hold until they have sorted out the issue of illegal rentals. Quite sensibly the new Balearic government doesn´t want anyone to escape the tourist tax loop but I wish them luck in their new crackdown on the so-called illegal holiday rentals. The previous coalition Balearic government introduced a tourist tax which proved to be a disaster because it was ill-conceived and was only levied on tourists staying in hotels. This new government appears to have learnt from their past mistakes and are prepared to do their homework first. But I still maintain that a tourist tax is a very bad idea especially in these competitive times when tourists want value for more money not taxes. But as I said earlier I am glad that the government is taking a sensible approach to this controversial issue. It would have been easy just to introduce the tax and then wait for the consequences which would have been enormous. The back-lash would have been enormous. I would urge the Balearic government to open talks with the tour firms as well to get their views on this issue and also tips on how it should be introduced. Support is needed from the tourist industry, as well. I still maintain that the local authorities would raise more money from a voluntary contribution from tourists, but that is another story.
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