Spending

One of the principal reasons for the controversial tourist tax is because the local authorities are short of funds allegedly because of a lack of cash from Madrid. It is quite remarkable that the local authorities say that they are short of money when you take into account the massive amount of revenue the tourist industry generates. The Balearics are one of the richest areas in Spain and it shows. If you go to any big city on the mainland you will not see the large numbers of top range cars you see on the roads in Palma. I was in Valencia recently and while it is a beautiful city it does not hold a candle to Palma.  Our capital city is far more affluent with its top designer shops and restaurants and cafes. Looking around Palma you do not get the impression that the local authorities are short of cash and with a multi-billion euro tourist industry it is quite incredible that our principal local authorities are pleading poverty and planning an introduction of a tourist tax. There must be an easier way to raise funds than placing a levy on tourists. Perhaps the local authorities could even look at cutting back on the army of civil servants. Merging some of the smaller councils into one and having a single regional authority for all the Balearics would save millions. The local authorities could easily save money but they lack the necessary political courage to undertake the cuts. They prefer to introduce more taxes which will just make the problem more pronounced.