The hoteliers argue that flats were designed for residential use, not for tourism. | MDB

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The Mallorca Hoteliers Federation has responded angrily to announcements on Wednesday regarding the tourist tax, holiday lets and water charges.

Criticising President Prohens for a lack of courage and a lack of ambition, the federation believes that the government has missed "a golden opportunity" to return a huge pool of housing to residential use.

Prohens announced in parliament on Wednesday that when the current moratorium on new tourist accommodation places (beds) is lifted, there will be a ban on new holiday rental licences for apartments. The hoteliers have advocated eliminating all the existing supply of holiday apartments.

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"Despite unsustainable precariousness in access to housing, we have a scenario by which the Balearic Government guarantees a continuation of regulated apartments for holiday rental." Flats not being returned to the housing market "were designed for residential use".

"This will worsen the shortage experienced by citizens, public and private sector workers and young people who aspire to emancipate themselves." Moreover, the federation argues, "the ground is being paved for the perpetuation of the proliferation of illegal supply".

The hoteliers are critical of the plan to increase the tourist tax between June and August. This comes on top of the "impunity of the illegal supply, which will continue to run wild". "We do not see how tourists will understand that we welcome them to the islands by charging them even more and without any improvement or transparency in how the tax is used."

Finally, the federation believes that an increase in the water rate for large consumers (e.g. hotels) and a reduction for domestic consumers is "discriminatory". "What should be done is to encourage co-responsibility for all consumers to be respectful of a scarce resource and to promote more rational use."