Calvia is one of eight members of the Alliance of Sun and Beach Tourist Municipalities (AMT) that was founded in 2017 and which has better financing as one of its objectives. These eight municipalities account for almost ten per cent of Spain's foreign tourism and around 19% of overnight stays. They receive virtually no governmental support, yet their populations hugely increase in the tourism season or, in the case of municipalities in the Canaries, all year round.
Calvia estimates that special recognition by the Spanish Government would lead to annual savings of some ten 10 million euros, which equates to seven per cent of the town hall's annual budget. In theory, this aid is available, but only one of the eight - Salou - meets the criteria that are based on 2004 local finance legislation. The criteria are out of date.
The 2004 law defined a tourist municipality as one that is neither a provincial nor regional capital, has between 20,000 and 75,000 inhabitants, and whose number of second homes exceeds the number of primary residences. According to a report from the Exceltur alliance of leading tourism and travel companies, fourteen municipalities in Spain currently meet these criteria.
Exceltur has focused on the twenty most visited destinations in the country. Playa de Palma is therefore covered as well as Calvia. These account for 41.5% of all tourists and 35% of total accommodation capacity. Yet these municipalities have budgets that are, on average, 20% lower than that of all Spanish municipalities. In places like Calvia, which has 25 centres and 15 beaches, and where the population can treble during peak season, balancing revenue with mandatory services is a constant challenge.
The AMT is calling for a legal redefinition of what constitutes a tourist municipality, with the aim of opening the door to a new funding framework.
The alliance suggests that municipalities that are neither provincial nor regional capitals and have a population between 10,000 and 100,000 inhabitants be eligible. Furthermore, they should meet at least one of the following criteria: that second homes outnumber primary residences, that they register more than four million overnight stays annually, or that tourist accommodation exceeds 50% of the registered population.
With this broadening of criteria, the number of tourist municipalities in Spain would increase from 14 to 53. In Mallorca, it would bring in Alcudia, Capdepera, Santa Margalida, Santanyi and Son Servera. Specific measures being proposed include a reduced rate of three per cent IVA (VAT) on municipal purchases.