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Tourism Isn’t the Problem – Inequality Is

Tourism has long been Mallorca’s lifeblood

A portion of the tourist tax should be ring-fenced for a housing subsidy fund for low-income residents | Photo: M.A. CAÑELLAS

| Palma | |

As a long-time resident of Mallorca, I have to admit the recent anti-tourism protests haven’t affected my daily life, despite all the negative rhetoric in the press. Unless you're in the specific protest areas—usually Palma’s Old Town or sone of the main beaches—you’d barely notice. But to dismiss the protests entirely would be to miss the deeper message.

The core issue isn’t tourism itself. It’s the imbalance created by low wages, sky-high property prices and rents, and a lack of meaningful government intervention. When you live on one of Europe’s most visited islands—where hotel rates are among some of the highest in Europe—it’s frustrating to see locals working in this booming industry unable to afford a basic flat.

But the answer isn’t to reject visitors. Tourism has long been Mallorca’s lifeblood. What’s needed is fairer redistribution and smarter policy. A portion of the tourist tax should be ring-fenced for a housing subsidy fund for low-income residents. Hoteliers—many with record profits—could be required to contribute a small share of earnings annually to support affordable housing.

The government could also enforce quotas for subsidised housing, fast-track permits for co-living and long-term rentals, and rezone land for residential—not just commercial or tourism—use. Crucially, owners of multiple properties, especially non-residents, should face higher property taxes, once again with some of those funds directed to housing support for residents.

Tourism is not the enemy. Poor planning, lack of political will, and inequality are. If implemented properly, these reforms could turn resentment into cooperation - imagine a system where every hotel booking and tourist tax payment contributes directly to the welfare of the lower-income population. Where residents know that tourism is not something done to them, but something that helps support their livelihoods.

This kind of structural reform could ease tension, restore pride, and create a more symbiotic relationship between locals and the industry that sustains the island. With creative, collaborative policy-making, Mallorca can remain both a world-class destination and a place locals are proud—and able—to call home.

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