Tourist tax explanation, as sent to ABTA and to DRV.

24-01-2018

The gloves are off. The Balearics has issued a letter to Europe’s main travel industry organisations, such as the Association of British Travel Agents in the United Kingdom, to clearly outline and explain the increase in the tourist tax this year, or rather during high season, in response to Greece having also introduced a high season tourist tax, or bed tax, as the Greek tourism authorities have called it, in similar notifications.

The Greek rates are slightly cheaper than here in the Balearics. They do not apply to cruise ships and 10 per cent VAT is not added on top, such as it is here with that 10 per cent going into the coffers in Madrid. In Greece, the tax is nationwide and the reasons for it being introduced by the Greek Ministry of Tourism "is to aim to enhance the State’s revenue in the context of the current fiscal adjustment programme".

There is no mention of the extra funds raised being reinvested in improving and enhancing tourism in the country. In the letter issued by the Balearic Ministry for Tourism the aims and objectives are clearly stated.

First of all, it is underlined that the number of visitors coming to the Balearics every year is increasing and that is putting a greater strain on the environment and, in order to be able to balance this rising impact, the Balearic Government has decided to increase the amount of funds available for sustainable tourism and the bulk of that comes from the tourist tax. The Director General for Balearic Tourism, Antoni Sansó Servera, goes on to explain: "The revenues of the tax are primarily invested in environmental protection projects in order to substantially reduce these impacts and preserve our territory."

In the brief the government points out that of the 30 million euros collected from the tax between July and December of last year, that money allowed the funding of 46 projects, 80 per cent of them being environmental protection and water projects. The remaining 20 per cent was invested in promoting sustainable tourism."

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Catherine stewart / Hace 8 months

I booked my forthcoming holiday in may to majorca unaware of the tourist tax the holiday itself was dear enough so having to pay another 80-100 euros when we arrive has blown me away the only thing this is going to do is scare people away from holidaying there. Have been to majorca a few times but this will be my last there is a big world out there with long haul prices not looking too bad now. As for my holiday this year I will not be spending in local shops,bars and markets like we usually do and be staying strictly to our all inclusive hotel as we are now 100 euros down on our spending money. So I think this will affect your local shops bars etc. Good luck majorca

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Daryn / Hace 10 months

Looking at this year's holiday prices well let's just saying won't be coming this summer and by adding this tourist tax you will have less visitors. I gaurantee those tourists that are unaware of this tax won't be back next year, I gaurantee with the price increase of holidays you will struggle to get the numbers next year. Good luck Majorca.

+10-

Richard Pearson / Hace 10 months

Thanks.

The ones here do as well, but many of them are still of mainland stock and prefer to keep their heads down and mouths shut. The other problem is the language barrier and being a small island the power held generally by the those who are locals, although some of the leaders of newish parties aren’t and are worse than the home bred ones.

+1-

John P / Hace 10 months

Can only speak for Crete but forget the tax,food,drink at least one third cheaper and the Cretan equivalent of tapas (which is fast disappearing in Mallorca) is so generous that we have to say no more as we are having a meal .The restaurants even drive you back to your accommodation.The bar owners,restaurant owners it’s fair to say despise the politicians and maybe those in Mallorca will find their voice eventually.

+18-

Richard Pearson / Hace 10 months

Sorry, that should read “those who” and not “those that” ( collect the tax )

+2-

Richard Pearson / Hace 10 months

John, question. How much cheaper will your holiday be in Greece compared to Mallorca, not including of course, the tourist tax ?

The 10% VAT tax will have the added benefit of making sure that all those that collect the tourist tax will make sure that it is handed over to the proper authorities and not forgotten in some bottom draw, as if it were, the central tax office (Madrid) would come down on them like a ton of bricks or anything else that may cause stress and confusion.

+2-

John P / Hace 10 months

Can understand Greece due to the state of their economy,(who has the most incompetent politicians Mallorca v Greece) but with Mallorca it is pure greed. Will be going Greece this year and happy to pay,not happy to pay this summer Mallorca.

+13-

Daily Bulletin / Hace 10 months

The ten per cent is added to the charge per tourist and is payable by the tourist. So, if the bill for a stay is, for example, 40 euros (tourist tax), the amount payable is in fact 44 euros. As with all IVA revenue, this is in principle state revenue, but an element of it finds its way back through the regional financing system.

The ten per cent on the tourist tax was decreed by Madrid when Catalonia was in the process of introducing its tourist tax. The Balearic government was obliged to follow suit. The Greeks have presumably interpreted their tourist tax differently for the purposes of VAT.

+12-

George / Hace 10 months

As mentioned by others. The tax is counter to the ethic of being hospitable to guests. Greece are having to do it because their economy is still in a precarious state. Not so here. Could someone please clarify the extra 10%. Is that added to the charge to tourists or is it creamed off the top of the revenue by Madrid?

+16-

Ron / Hace 10 months

No matter how the tax is dressed up to appear to be beneficial, it will be the ruination of many businesses. And there is not a 'slight' difference in the rates - rather a vast difference! So 73% of visitors stay in 3 & 4 star hotels? And what about 2 & 5 star? How sad and ill informed is tourism minister Nadal when he says that holiday rentals (occupying a mere 27% - if we are to believe anything in this stupid letter) are to blame for 'saturation'. Tying to get rid of healthy competition be it from Greece or holiday rentals is only to be expected from this ridiculous government. They know it won't be long and they will be gone.

+26-