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Mallorca holiday cost alert: 'Put tourist tax up if you dare', say Balearic socialists, Costa del Sol rules out extra charges

The proposal would see a two-euro increase during June, July and August, with concessions for certain groups

A law has also been proposed to ban holiday flats and phase out all rentals as licences expire | Photo: ALEJANDRO MELLON

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The Socialist Party of the Balearic Islands (PSIB), the regional branch of Spain’s main Socialist party, has proposed working with Balearics President Marga Prohens to jointly approve around ten reforms and initiatives. Two of these were originally put forward by the PP-led regional government itself as measures to curb tourism: an increase in the tourist tax (ITS) and a levy on vehicles registered outside the Balearic Islands.

The PSIB has also tabled the government’s own proposed measures on holiday rentals. While the PP’s plan focused on tightening requirements for licence renewal, the Socialists suggest allowing licences to expire gradually. “This society is no longer in the mood for empty promises,” declared PSIB spokesperson Iago Negueruela during the General Policy Debate in Parliament.

The party has formally submitted all these initiatives, effectively starting the countdown to a parliamentary vote. By presenting measures “identical” to those previously defended by the PP, the Socialists aim to put the government on the defensive. “If you wish to approve them, simply vote in favour. If not, stop misleading the public,” Negueruela said.

He added: “The PP has once again mentioned raising the sustainable tourism tax. We have long supported the idea of increasing the tax we ourselves introduced. If they genuinely intend to raise it now, we have already registered their own proposal.” The proposal would see a two-euro increase during June, July and August, with concessions for certain groups, including athletes.

The same approach has been taken with the proposed tax on vehicles registered outside the Balearic Islands, with Negueruela noting that the PSIB has mirrored the government’s own presentation. “It seemed a good idea when you announced it; now the draft law has been written by us,” he said. While the Socialists consider these proposals “not ambitious enough,” they represent measures Prohens has indicated she is willing to approve.

Ironically, the Costa del Sol Hoteliers’ Association (Aehcos) has expressed its strong opposition to the approval of the so-called ‘tourist tax’ due to the negative consequences it would have on the tourism industry, while criticising that this tax ‘is in fact a tax, with no immediate return for the tourism industry and no guarantees of increasing the housing stock’.

‘We are aware of the local administration’s deficit in providing services to its citizens, but the approval of the tourist tax would have a very negative impact on the competitiveness of the sector and, by extension, on the local and regional economy as a whole,’ said the president of the Malaga hotel association, José Luque.

‘Its implementation would not have a guaranteed return for a specific purpose because taxes have no final objective, i.e. the revenue collected goes into the general income of the authorities without a specific objective. Ultimately, the economy of society as a whole would be affected because the increase in costs would be transferred to the CPI and, therefore, to general inflation,’ added the president of Aehcos.

In a press release, Luque also referred to similar experiences that have already been implemented in other regions such as the Balearic Islands and Catalonia, ‘where it has already been seen that the supposed purpose of this tax has not been fulfilled, as the money collected is being used to correct funding deficits in other public services.’

In addition, the PSIB submitted seven other legislative initiatives on Tuesday, including a law to phase out holiday flats, even those legally authorised, as licences expire. Other proposals — such as applying the national Housing Law to cap rental prices or guaranteeing free public transport — are ideologically unacceptable to the PP, which has consistently opposed such measures.

The agreements on offer also include less contentious proposals, such as a plan to improve air conditioning in classrooms, a Meteorology Law to establish a regional weather agency, a Balearic Sea Law requiring approval by the national Parliament, and a reform of the Statute of Autonomy to guarantee minimum funding for essential public services. The PSIB has also suggested a pact to promote an Equality Law aimed at abolishing prostitution — a proposal that drew laughter from PP benches, visibly irritating Negueruela.

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