Business community warns new tourist tax would be bad news

The Confederation of Balearic Business Associations (CAEB) yesterday spoke out strongly against another tourist tax being introduced.
Lately the opposition left wing parties have been talking about various different models, but CAEB warned yesterday that the reintroduction of the tax, which caused serious damage to the region’s tourist industry and image last time around, will only restrict the Balearics’ ability to compete on a level playing field with  other regions of Spain and emerging destinations elsewhere in the Mediterranean.
CAEB Director, Sergio Beltran, was giving the confederation’s forecast for the region’s economic growth this year when he made the comments and a tourist tax, which he fears will hold that growth back.
However, as the situation currently stands, CAEBforecasts economic growth of at least two percent although it could rise to 2.5 or even as much as 2.8 percent   over the course of the year.
Bertran said that last year, the regional economy grew by 1.1 percent but highlighted that there has been a great deal of growth and investment in the construction and tourist sectors over the winter and that has served to create a substantial amount of new jobs and also given the local economy a lift with much of the investment coming from the private sector.
Bertran also revealed that exports of Balearic goods is continuing to rise and that last year exports grew by 45.1 percent, although most of them were car parts, but the export of wine and spirits rose by 7.5 percent and footwear, 17.5 percent.