How to detonate a tourism row bomb

Did the government sense the need to drop a bomb or two rather than face an ongoing criticism of inaction?

People at Palma Son Sant Joan Airport, Mallorca

The tourist tax looks set to go up in summer 2025. | Archive

Andrew EdePalma13/10/2024 14:24

More than a year on from taking power, perhaps Marga Prohens and the Partido Popular realised they needed to unleash policies beyond attempting to persuade town halls into agreeing to the conversion of commercial premises into residential accommodation and also attempting to actually govern in face of the ludicrous infighting among their supposed supporters from Vox. The president thus unveiled the plan for the train to Llucmajor, which made modest ripples, but also defied party ideology by announcing a high-season increase in the tourist tax.

It was hardly a nuclear option, but it was a bomb that set off a chain reaction, the potency combined with a holiday rentals explosion that was first one thing and then apparently another. The impact caused craters outside, for example, the headquarters of the hoteliers federation and the holiday rentals association, and one was left to search beneath the rubble for what it all meant.

Where to start? One might suggest a council of war at the federation were it not for the fact that inevitable 'sources' were indicating that there is a skirmish within its own ranks and that the hitherto untouchable president, Maria Frontera, was being blamed for having had insufficient communication with Marga Prohens. Had there been someone else occupying the federation's presidential suite, it was suggested, none of what had come to pass would have happened. Frontera will soon vacate the suite, as her maximum two terms are coming to an end. So, had she been at fault for other sectors for which she has no responsibility, e.g. the restaurants, also piling in on the government and screaming lack of consultation?

Another source lamented the fact that the government (this government) is supposed to be the hoteliers' friend. Said source thus opined that the anger was colossal. A collection of sources then wondered what the hell was going on with the Prohens social and political pact for sustainability. Aren't its working parties, which include business representatives, meant to be coming up with solutions to the malaise of overtourism in Mallorca and the Balearics? Consultation? What consultation?

In answering this, one might consider the style of this government or the impression given at any rate. Up to the stump in responding to criticisms was Antoni Costa, vice-president and finance minister. The pact's working parties will "make concrete" the initiatives presented by the president, meaning that decisions have indeed been taken. Costa, it should be noted, is the other and smaller skull of the two-headed beast that is the government.

As the fallout from the bomb began to infiltrate the very fabric of the island's tourism industry, where was the tourism minister, Jaume Bauzá? Back in his home village of Montuiri hunting for evidence of specific cases of tourist saturation, he once having averred that they are only specific (and maybe not at all in Montuiri)?

Whatever one thought of Francina Armengol - and yes, she copped it for not always living up to her repeated consensus-and-dialogue mantra - there was at least the veneer of a collegiate government. Negueruela, Gómez, Yllanes, March, Pons and others led policies and fought their corners. With the PP, it's Prohens and Costa, my point being that such an apparent concentration can imply a cultural non-alignment with a consultative approach.

And as I suggest, Prohens seemed to sense the need to drop a bomb or two rather than face an ongoing criticism of inaction. Besides, and to be fair, had there been prior consultation, what would have been the chances of information leaking? High. When he was tourism minister, Iago Negueruela was hardly averse to producing policy out of the blue, such as with an immediate decree for the moratorium on granting new tourist accommodation places. Which brings one to the holiday rentals.

The hoteliers immediately attacked Prohens for not going any further than announcing there will be no more licences for apartment holiday lets once this moratorium is lifted. The government should ban this type of let full stop. Not having announced such a ban, it emerged that the government supposedly plans not to renew existing licences - a ban in all but name. A government plan, and it will be left to the working parties; to do what? Well, rubber stamp the plan, one guesses. It doesn't require too much imagination to figure out the reaction to this bomb falling out of the sky at the holiday rentals association and its allies like the Pimem small businesses federation.

While it will upset some, I applaud the government if it does follow through with non-renewal of licences. This is not in defence of hotelier interests, it is in defence of social interests; I am well aware of the harm. But what of the tourist tax rise and the irrelevant decrease from December to February? This will contribute to an adjustment of tourist flows, according to Prohens. Will it? There are plenty who argue that the tax isn't dissuasive, but having dropped this particular bomb, she is now going to have to defend it to a British press in London next month. Good luck with that.

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Morgan Williams | 2 months ago

Zoltan TeglasThis is why I don't subscribe to any "tribe". It's too easy to just just point fingers at the "other" tribe. The reality is that both sides have a natural tendency to act in the interest of the tribe over the interest of the jurisdiction they were elected to be responsible for. Having said that, I have to agree with Andrew on this one. This is a PR move more than anything else. It will have little or no impact, but it makes it appear as if they're "doing something". But again, the truth is that this "problem" isn't easy to fix nor is going away anytime soon, no matter what government presides over it. There is no magic wand. I would argue that this is hardly a "bomb" in any practical sense. Sure, it pisses of the hoteliers who though they had the presiding government in their pocket, but in reality, most of tourism will hardly notice a couple of Euros per night. They'll keep coming, just like they did last year, and this year and every year. And tourism isn't the root cause anyway. The root cause is that Mallorca has become increasingly desirable over the past decade - both for tourism and for would-be home buyers - especially pensioners who've accumulated some wealth in their lifetimes and are seeking a nice place to live the rest of their days. They're happy to pay for it, and the sellers are happy to take their money. The story is the same everywhere - bought that family home 30 years ago for a couple hundred grand, paid it off over time, and then retired and sold it for 1.5 million at current prices - and using that money to buy that house in Mallorca that they always wanted. It's happening all around us. And the locals are making a lot of money from it - not just the sale at top prices, but any construction (lots of that going on) taxes, fees, you name it. Everybody's getting a cut. And they vote. It's also worth pointing out that this is hardly a "tax increase" on the electorate. It's a tax increase on --> tourists <--. And it's a bit of a stretch to say it's breaking a promise. But don't get me wrong - I'm not supporting it or the PP. It's a useless act with no impact. It's all about protecting the image of the tribe to voters, and has little to do with the issue at hand. Tribalism is the bane of modern politics, and too oft leads to useless (often expensive) acts that "solve" imaginary "problems" caused by imaginary "enemies". Look at Brexit, for example. And Andrew - it doesn't matter what the British press thinks. They've already scared some number of Brits off. But that won't have much impact either. Tourists will still keep coming and people will still keep buying properties.

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Zoltan Teglas | 2 months ago

It's about time the PP realised that they are supposed to work for all the residents of Mallorca, not just rich people and big business.