Housing, a "major concern" in the Balearics. | Pere Bota

The Balearic parliament has approved a proposal for 25% of annual tourist tax revenue to be dedicated to housing policies.

This measure was presented by Més in Minorca and was passed on Tuesday among various other proposals that had arisen from the general policy debate that was held last week. Spokesperson Josep Castells was pleased with the "success" of the proposal, as "access to housing is the citizens' main concern".

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Castells said: "It is evident that one of the causes of the lack of housing and the increase in prices is tourist overcrowding. This has both direct and indirect effects. It results in more demand and, because of a limited supply, prices go up." For this reason, he believed that it was "logical" that part of the tax paid by tourists should be dedicated to mitigating this negative impact.

Another proposal by Més in Minorca was not approved. This was for a doubling of the tourist tax in high season. "This would have been another element to reduce tourist overcrowding during the summer months." The party will nevertheless be presenting an amendment to the 2023 budgets to modify the current law for the sustainable tourism tax.

* One of the six purposes for use of tourist tax revenue does relate to housing.