Before the tax came in - Inma Benito with Biel Barceló. Meetings now might be less friendly.

13-07-2015Joan Torres

With the tourist tax set to increase next year, the Majorca Hoteliers Federation has described the rise as "disastrous". The federation president, Inma Benito, believes that it would also be a "precipitate decision" as the effects of introducing the tax (which was in July last year) are still unknown.

She adds that no positive consequences of the tax have yet to be seen in terms of increasing social value or improving the tourism offer. "As we have said on previous occasions, this is just about tax collection." Benito says that the proposed increase demonstrates a lack of responsibility by the government. The federation, she notes, has not had any communication from the government about the rise.

The tax, she argues, has a distorting effect. This will be more pronounced in the future if the increase goes ahead. The impact will be on the competitiveness of Majorca as a tourist destination. "There may be a significant number of people who stop coming to Majorca at any time of the year and not just in the high season. There will be a direct effect on the spending power of those who visit the islands, which will mean less revenue for businesses. Has the government quantified the impact on companies?"

Benito believes that a tax increase will mean that business profit is affected and that a logical direct effect of this will be on investment: "An impoverishment of the economy which will occur due to cuts in investment for other sectors, such as construction."

On Monday this week a Podemos press conference made clear that the party is seeking a "significant" increase in the tourist tax. The Podemos general secretary, Alberto Jarabo, said that the government parties (PSOE and Més) had already shown that they intended to increase the tax, though this had yet to be quantified. Podemos have been pressing for a higher tax and have made it a condition of giving approval to the 2018 budget.

Last week we reported that the tax may not rise across the board, though it is now being suggested that it will and that, moreover, it will be doubled in all instances. Therefore the lowest current summer rate - 50 cents per day for hostels and some other categories - would be one euro in 2018. One to the three star accommodation would be two euros. Three-star superior and four star would become three euros, and four-star superior and five star would rise to four euros. Holiday rental accommodation would be two euros, as would be cruise ships. To all of these rates one has to apply 10% IVA (VAT).

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Jan Amtrup / Hace over 2 years

2-4 euros a day is fair. I dont see the problem, and Mallorca will still have +10 million tourists a year. Maybe we can loose the crap tourism.

+-2-

S. / Hace over 2 years

The Hoteliers had a good little number, with their All Inclusive tariffs. Now they will have to account for increased tourist tax and its complaints.

+7-

Richard Pearson / Hace over 2 years

The hoteliers were and are always opposed to the introduction of the tourist tax, and maybe the fact that the president of their association has just resigned could have something to do with it.

The IVA tax was demanded by central government and has nothing to do with Barcelo and his cronies.

+4-

Geoff / Hace over 2 years

Are these the same hoteliers who pay the chambermaids 2 euros a room to clean up somebody else's mess? And they think they have it tough?????????

+9-

Graham / Hace over 2 years

The reason why beaches were busy in July is because their are far more of us living on the island than their was 10 years ago !!! Actually I do not believe it is tourists that mAke the island busy, it is all of us who own holiday homes. Think we will see the hotels struggling next year.

+8-

Tim / Hace over 2 years

Has Majorcans lost the plot,with the potential increased tourist tax ( which is a joke) and the youth of the island protesting against tourists. Keep this up and with some negative press then us tourists will tell you to stick your lovely island. Believe you me #croatia will be rubbing its hands.

+29-

BMCG / Hace over 2 years

I thought that was the whole idea to reduce the number of tourists. Now the hotels are starting to complain realising what could happen. The hotels themselves are all refurbishing the buildings and in turn asking higher prices. They could see this investment going to waste. They could potentially keep ramping up the tax until they see a reduction in numbers , then they would have to reverse it. It will take a long time to get the people back that they have lost as visitors. They will find other places to visit that are a lot more welcoming than Majorca.

+23-

Henry James / Hace over 2 years

I hope that you enjoy your tourist-free Island in the future but when the reality of just exactly what services all that tourist money has provided for your Island hits home and what life is like without all those services,then just remember that you only have yourselves to blame.

+27-

Stuart Mead / Hace over 2 years

The tourist tax is another nail in the coffin for Majorca. Combined with the ever increasing prices lower quality and indifference from some Majorcans towards the tourists I think that a lot of people will now be going to Croatia instead. We will spend our money where we are liked.

+26-

Paul / Hace over 2 years

Welcome to the asylum. A pity that the hoteliers were happy to see private rentals decimated through the bull in a china shop approach towards licencing as they thought that they'd gain from that and put their prices up. Now with the increased tax that doesn't look as lucrative. I can see Majorca becoming deserted by tourists as they become ever more put off by hostility from the left wing idiots, taxed to death by the government and fleeced by hoteliers. I really feel sorry for the small business owners who will see all their hard work go to the wall as a result of this lunacy

+30-