The Balearic Government plans to allocate 15 million euros of tourist tax revenue to the demolition of obsolete or abandoned tourist accommodation.
The tourism ministry's proposal will be presented for approval at the meeting of the Sustainable Tourism Tax Commission at the end of October. It is very likely to be approved.
The principal aim, it seems, is for demolished sites to be converted into public space - gardens, parks or social facilities. There is the possibility of building social housing. However, this is said to run up against the suitability of having residential accommodation in tourist centres. Conditions to ensure coexistence between residents and tourists may not apply.
Four properties have been earmarked. These are the Hotel Teix in Magalluf, the Hostal Colon in Peguera, the Topaz Apartments in Calas de Mallorca and a project in Sant Antoni in Ibiza.
Calvia Town Hall has approved the plans for Teix and the Colon, and the Teix was in fact identified by the previous government under its scheme (not carried out) for eliminating obsolete hotels. The key principle both then and now is transformation towards a higher quality tourism model.
Notwithstanding the suitability on coexistence grounds, it can be argued that housing is the more pressing priority. Unrelated to the tourist tax proposal, there is, for example, the case of the Posada de Verano in Alcudia, which the town hall wants to acquire for demolition with the intention of creating a public space. Its location is such that there would be no coexistence issue.
It might also be noted that there have been legislative attempts for the conversion of obsolete hotel stock into residential accommodation. Despite a lack of success with these initiatives, they have established a different principle, which is one focused on homes.