Spain's chamber of commerce have advised the Balearic government to scrap the tourist tax. Representatives from chambers of commerce across the country met in Madrid for talks yesterday and all agreed that the crisis gripping tour operators and the economic problems in Germany are both having a negative effect on Balearic tourism and the tourist tax has not helped. Leading businessmen and women said yesterday that other Mediterranean destinations are proving tough competition for the Balearics and that some of the region's industrial sectors are already starting to suffer, which in turn is slowing down the economy. Delegates at yesterday's meeting agreed that the Balearics has some serious environmental problems but the government is going about resolving the issues the wrong way. The chambers of commerce also oppose the discriminating way in which only hotel guests and clients staying in registered self catering accommodation have to pay the tax. The Constitutional Tribunal in Madrid has still yet to rule on central government's appeal against the tax which was introduced on May 1.

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