The Balearic hotel sector yesterday gave its clearest hint yet, since the tourist tax was preliminary approved two weeks ago by the Balearic parliament, that it intends to push ahead with legal action against the local authority. A spokesperson for the Majorcan Hotel Federation said yesterday that it still has “in its power” the results of the legal inquiry carried out in to the tax, which confirms what the Minister for Tax in Madrid, Cristóbal Montoro, has said, that the tax is unconstitutional. Hoteliers claims that the tax damages and conflicts with the concept of VAT paid by the hotel sector and that the introduction of the tourist tax will act as a double tax for the hotel industry. Ignaci Esteve, vice president of the Hotel Federation, said yesterday that while it appears they have central government on their side “we don't want to politicise the issue”. “The hotel sector has said all it has to say, that the tax is very damaging, not only for the accommodation sector but also the Balearic tourist industry.” A study carried out in Andalucia for the local ministry for tourism into the viability of a tourist tax being introduced, has concluded that it will not be a good idea for the Andalucian tourist sector.

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