No rise in the tourist tax, but Mallorca's hoteliers incensed by government plan for holiday rentals

"Scandalous" say the hoteliers

A tourism decree covering various issues is to be approved by the cabinet. | Archive

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This Friday, the Balearic Government will approve a tourism decree that will in effect lift the current moratorium on tourist accommodation places (beds) by establishing a temporary pool of places until the island councils have reached agreement on the maximum number of accommodation places per island. The moratorium won't be lifted definitively until the councils have announced their decisions.

President Marga Prohens said on Wednesday that her role is to "defend the general interest". "We advocate containment, not decrease." She was referring to the 90,000 holiday rental accommodation places that will be placed in the exchange pool, a decision that has enraged Mallorca's hoteliers.

She explained that the temporary pool will allow for the exchange of accommodation places but without growth. "Starting Monday, new establishments will be able to open without creating new places."

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Since February 2022, which was when the previous government introduced the moratorium, it has not been possible to acquire holiday rental accommodation places from the pool and therefore establish a new holiday rental property. From Monday, this will be possible, but not for apartments. Prohens added that there will be a prohibition of apartment accommodation places, by which she meant new ones. The acquisition of places from the pool for holiday rentals will only be for standalone properties.

Ahead of Wednesday's announcement, the Mallorca Hoteliers Federation said that it would be "scandalous" and "incomprehensible" were the government to make available so many accommodation places, given the housing emergency. The hoteliers' view is that there will be a perpetuation of holiday rental apartments, when an improvement to access to housing would be achieved by eliminating them.

Regarding the criticism from the hoteliers, Prohens said it was "normal" for business representatives to defend their interests, "but we must all be able to coexist". The decree, she pointed out, will incorporate stronger measures to tackle illegal holiday rentals. The tourist tax will be used to combat this illegal activity.

And on the tourist tax, an increase that had been contemplated for high summer will now not be implemented. "I said from the outset that this would have to be negotiated because I don't have a parliamentary majority." She pointed out that Vox had been the only party willing to discuss the decree and, as a condition for supporting it, had requested that there be no fiscal measures, i.e. no tourist tax increase. On this, at least, the hoteliers will be content.