A study commissioned by the Balearic government to assess any negative impact of the new tourist tax, which comes into effect on 1 July, has concluded that the levy will lead to a 0.8 per cent fall in spending by holiday makers.
The findings of the survey were presented yesterday by the Balearic vice-president and minister for tourism, Biel Barcelo, who also clarified that the analysis highlights that demand could increase by four per cent.
The minister, who was accompanied by the president of The City Transformation Agency, Antoni Vives, who carried out the study, explained that the tax will have a "minimal" impact on the price of a package holiday because it will amount to around one perc ent of the total cost of a holiday in the Balearics.
According to the study, despite the unlikely reduction in demand, if it should occur on the basis of observed patterns and current levels of spending and tourism flows, the impact on tourism expenditure would be a maximum of 0.8 per cent. The worst-case scenario could be a reduction of overnight stays and tourist spending, and the terms of the negative economic impact would be around 36 million euros of GDP and the loss of some 741 jobs.
However, as the projected revenue raised by the tax is some 75.8 million, this would compensate for any downturn. The study does, though, raise a hypothetical scenario of a four per cent increase in the number of overnight stays due to the current international situation. This net increase of four per cent would result in an increase in tax revenue to 78.9 million euros.
If that does turn out to be the case, then this will lead to an increase of 18.18 million euros in GDP and the creation of 732 new jobs.
15 comments
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I booked my holiday last year and did not know about this TT till last week, with Britain leaving the EU and the pound falling against the euro we certainly wont be spending much money outside our hotel as we are all inclusive and will be going elsewhere next year
The tax is no problem as it will be generated into the beauty and needs of the Island- The problem is that the lowest of the low- the scumbags and drink and drug holiday makers are there- I firmly believe that alcohol breath tests should be permitted AT the holding areas of flights to places like Mallorca -I have been here when loads of people are yelling and screaming leaving hard working flying crew with this drunken scum- Ihave been on flights to the Island where the CSD in control of the passengers has just CLOSED the bar and then all passengers suffer- IF these yobs do pass the initial holding area and arrive at passport conctrol they should be not even let past the officers and sent back with no entry- they are not welcome= they should be going to hell holes like Kavos and places in Greece where the roads have just pop holes and lie on the streets and beaches all night
This country is going to the dogs. Do you know how difficult it is to get approval for a massive satellite dish on top of an apartment complex?? Near impossible!
Another study has also shown 'The Pope IS a Catholic', and 'Bears DO poo in the woods'.How much did the study cost, and will the cost be taken from the tourist tax ??
Mike Lammers, My 8 year old and 10 year old boys will be distraught that they have to have one less beer per day on their annual trip to Mallorca. Its a disgrace.
Maybe Jason should apply the same rules to people who write to the DB : )
Instead of a tourist tax, every tourist should have to take an IQ test at Palma airport. Those who get less than 120 would have to go home. This way we would get intelligent well behaved tourists with money and get rid of the Magaluf/Arenal riff raff. No need to spend money on the environment as the thugs wouldn't be destroying it. Simple!
Mike, according to an opinion poll taken at the beginning of this year, nearly 80% of the locals thought it was a good idea, and that was before someone suggested that the money could be used to build old peoples homes !.. Like Steve quite rightly says, they do not seem to understand that tourists money is finite and that anything that goes towards paying the tax will not or cannot be spent elsewhere. I even suggested to to someone I correspond with that some enterprising chappie should sell plastic euros, say 100 for 5 GBP which could be used as tips in restaurants, so that people could show their displeasure whilst at the same time leaving their appreciation of services received. Another enterprsing chappie could then buy them back for a 50% discount and then flog them again.
Barcelo needs lessons in economics. A tourist tax is is not spent locally at bars, restaurants and tourist attractions, whereas money spent in those places circulates locally many times, thus enriching local businesses which in turn spend it at other local businesses, and each time the government makes money from income tax. The man is well-meaning but lacks brain.
It's to late now just let the tax run and watch them suffer the consequences maybe the majorcans will rise up like the Brits and stuff the government right up the a@@@ it's what they need