No tourist tax money for tourism projects. | Majorca Daily Bulletin reporter


None of the money raised by the controversial tourist tax or eco tax will be invested in tourism projects next year, 2023.

Of the 139 million euros to be spent next year from the tax, none of the projects approved by the committee in charge of managing the funds will be used to improve tourist areas, let alone to promote the islands as a tourist destination. This is the first time that revenue from the tax has not been earmarked for tourism policies.

The distribution of the money was agreed a few weeks ago and the government was united.
Unlike in previous years almost 50% of the total money has been earmarked for projects linked to the environment. For example, there are 20 million euros for the improvement of water networks, funding that a few years ago was provided by the Council of Mallorca through the Works and Services Plan to local municpalities.

Six million euros has been set aside for investments in the modernisation and adaptation to climate change of farms and aid to several municipalities to improve the water system.

1.1 million is being spent on the purchase of Alaró castle and another 3.1 million for the increase of public land in areas of environmental importance.

Related news

A further 1.3 million is set aside for what is defined as “experimental adaptation to climate change for the inhabitants of the Balearics”.

This is all part of the plan to use the tax to make environmental improvements, but nothing appears in next year’s investments about the tax’s second main objective: tourism.

One of the objectives of the tax was to improve tourist resorts, but in 2023 this part of the tax has been left out by those in charge of approving the projects in the commission.

28 million euros will be spent on the construction of housing and 15 million will be used to purchase flats of less than 270,000 euros and the remaining 13 million for the promotion of 53 subsidised housing to be rented.

The construction of housing was not initially included in the projects that could be financed with the eco-tax, but the government approved a modification of the law in the last legislature to be able to build flats with the eco-tax as it is considered that the shortage of housing is one of the negative results caused by tourism.

The distribution of the money from the eco-tax and the fact that 30 million euros have been earmarked for the expansion of the train to the east of Mallorca and another 13.3 million for the setting up of the Faculty of Sciences has provoked criticism from hoteliers, who consider that the government has completely distorted the tax and is using it as another source of financing its policies.