Hotel prices set to rise thanks to tourist tax

The price of a hotel room is expected to rise quite dramatically if the Balearic Government is allowed to impose their highly controversial tourist tax on hotels. Under legislation which is under discussion at the moment the tax will be imposed on all tourists staying in hotels or holiday apartments. The tax will be graded on the star rating of the hotel, with those staying at the five star establishments paying more. But hoteliers are expected to oppose the move, claiming that the tax will make them uncompetitive and they will lose out to competing destinations in the rest of the Mediterranean. Already, the Costa del Sol, is boldly saying that they have “poached” tourists from the Balearics. Now, all that Balearic leader Francesc Antich must do is to convince hoteliers that the tax is fair and viable. Taxing hotels was not the desired choice of the Balearic Government, they wanted tourists to pay the surcharge of about 1'500 pesetas at the airport, but this move was blocked by the Airport Authorities who are directly opposed to the levy. But by taxing hotels and holiday apartments there will be tourists who escape the tax. All those who arrive on the island and stay at a friend's apartment or rent an “illegal” apartment or house will escape the surcharge.