Més have expressed their opposition to tourist tax paid by Thomas Cook clients being kept by hoteliers. While approving other measures announced by the Balearic government, such as the financial aid for Thomas Cook employees, the party stated today that the tax has a purpose, which is that visitors contribute to counteracting "the negative effects" of tourism. The tax is "not to help businesses in cases of financial problems".
Politics
Més opposed to Thomas Cook tourist tax measure
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Where are the shareholders? A bad debt is a business risk. In case the hotels are in a dire need of liquidity then possibly a loan can be given, at normal rates and conditiions. But the shareholders should not expect a tax contribution or subvention. Since when a recurrent business risk like bad debts is a matter of tax comoensation? The tax paid by the tourists had an aim to cover the negative effects of tourism. Not to become a reserve for bad days.
"The tax has a purpose, which is that visitors contribute to counteracting "the negative effects" of tourism." Anyone who ever believed this must be living in cloud cuckoo land. It's been up for grabs by all and sundry ever since its introduction.
What about the thousands these hoteliers made BEFORE Thomas Cook went bust. Yet again taxes being used to prop up businesses that don’t deserve it.