Simple! The Balearics has devised a fantastic way to explain a drop in tourism as good news and at the same time proclaim the tourist tax as the saviour of the islands. The German tourism industry is already warning that the increase in the tourist tax (the rate will be doubled this year) will hit bookings to the islands this year. But the Balearic government says that the islands had reached saturation point during the peak months so the tourist tax is in fact reducing tourism which will mean that the islands will not be so saturated. So let's give a round of applause for the tourist tax or not?

There is a problem of course. Less tourism means less revunue and of course less tourist tax cash. And a fall in tourism is bad news. Yes, there is some concern locally that the island is far too saturated with tourists during the summer months. For me its a small price to pay for having a vibrant tourist industry, but there are some who claim that there are simply too many tourists and something needs to be done. The islands have to be careful though. The tourist tax, and doubling the rate, sends out all the wrong messages. In fact it could be argued that the islands were seeking ways to limit tourism, which is not the way forward. As we all know the islands are facing stiff competition from other holiday destinations in the eastern Mediterranean and north Africa. It is also reported that the Germans are going further afield. These could be dangerous times for the industry.