Tourists will pay more. Photo: Bulletin files.

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The Balearic government announced this morning that the rate of the tourist tax would increase next summer in one of their key policies to limit tourist overcrowding. Balearic President Marga Prohens did not say how much it would rise by but there has been speculation that it could double. Five star hotel guests already pay four euros per day per person.

The Balearic government said that the tax would rise in the summer and fall in the winter but gave no ffurther details.

The move is set to cause some controversy because Mallorca is already considered an expensive holiday destination. The Balearic government had been seeking ways so that local residents didn´t pay the tax (only tourists). However, this would break European Union law so they will be offered tax relief.

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Five-star and four-star superior hotel guests at the moment pay four euros per day per person while four-star and three-star superior hotel guests are charged three euros during the summer months. There is otherwise a two euro charge.

A tourism official said: "Since July 1st 2016, the Tax for Sustainable Tourism is levied on all overnight stays in tourist accommodations on the Balearic Islands. Thanks to the contribution, we are able to make major investments to compensate the territorial and environmental impact of tourism on Mallorca, Menorca, Ibiza and Formentera..."

However, there has been some controversy how the money is spent. Initially it was said that it would be used to improve holiday resorts and ease the environmental footprint of mass tourism but it has been used to pay for projects in the agriculture sector.