President Prohens announced this increase during parliament's general policy debate two weeks ago. It was one of three issues that caused anger among hoteliers, who implied betrayal by a political party - the Partido Popular - they consider to be "friends".
No commitment to eliminating apartment holiday rentals and an increase in the tourist tax were the other two issues. While the first had nothing to do with revenue generation, the second - as with the water rate - clearly did.
In their differing ways, all three are linked to the debate regarding the islands' tourism model and therefore to the social and political pact for sustainability working parties which are considering measures to address overtourism and its impact.
As these working parties have yet to conclude their deliberations, the hoteliers accused the government of having pre-empted the conclusions. Moreover, they said that they had not been consulted.
The government appeared to then backtrack somewhat on the tourist tax, saying that the working parties will decide. The impression is, however, that the decision has been made.
The increased revenue from the tax, estimated to be around 12 million euros from 136 million to 148 million, has not been specified in the 2025 budget draft. The increase from the water charge has been specified - 22 million euros more, up from 90 million to 112 million.
Prohens said in parliament: "Water is a resource. The objective is that those who consume more, pay more, and to encourage savings." She suggested that this measure would be included in the decree of urgent measures against tourist saturation that is expected to come from the working parties' deliberations and be presented in February next year. But unlike the tourist tax rise, it is itemised in the budget.
The hoteliers responded by saying that the increase for large consumers was "ill-advised". They argued that they are much more efficient in their consumption and management of water than small consumers. "The co-responsibility of all consumers should be encouraged so that they are respectful of a scarce resource. An objective of more rational use is not achieved through discriminatory treatment and with a reduction (for small consumers) that can discourage rational use."
The government's estimate of 148 million euros in tourist tax revenue is based on an outlook for tourist activity in 2025 "similar to this year's". While revenue from the tourist tax and the water rate will go up, the government recognises that there will be a decrease because of reform of inheritance tax and wealth tax.
1 comment
To be able to write a comment, you have to be registered and logged in
Golf courses as well?