Tourist Tax: What’s It All About?

The main opposition parties in the Canaries have called for a tourist tax to be introduced… but what does that mean?

Tourist taxes are nothing new. They already apply in dozens of European destinations, from the Netherlands to Greece, while the most famous example in Spain was introduced in the Balearic Islands in 2017.

Funds raised by such taxes are intended to be used to protect the environment, improve infrastructure and generally address the impact that tourism has on society and the environment.

In the Canaries, the issue has returned to the news following last month’s proposal of the Socialist Party to apply a tourist tax which they claim would raise between €200- 250 million a year. Although the Socialists promised to implement such a tax when they took charge of the Canarian Government in 2019, spokesman Sebastián Franquis blamed their failure to do so on disruption caused by the pandemic.

“Now that tourism is back to normal, it’s the time for valiant measures,” Franquis said. The statement means the Socialists have joined the other main opposition party, Nueva Canarias, and the left-wing Sumar party in favour of a tourist tax.

However, the current Canarian Government, governed by a pact between the Coalición Canaria (CC) and the Partido Popular (PP) has not been so enthusiastic. The PP have flatly opposed any such tax, while Canarian President Fernando Clavijo has indicated that, while nothing is closed for discussion, a tourist tax is not in their plans.

Influential hoteliers’ associations have also opposed the measure, believing that extra charges will affect the competitiveness of the islands. And while some tourists have declared themselves willing to pay a small tax, the idea has generally received criticism in the UK travel sector and press.

On the other hand, the Canarian Holiday Rental Association has overwhelmingly voted in favour of such a tax, on the condition that funds raised are used to address the Canarian housing crisis, and such a tax is widely supported by several smaller political parties and local environmental groups.

A tourist tax was also one of the main demands of the recent protests against overdevelopment and mass tourism on the islands.

How much would it be?

Proposals for a Canarian tourist tax range from a flat fee of 50 cents a night per adult to a more staggered rate based on the standard of accommodation. The sustainable tourism tax in the Balearics, for example, ranges from €1 to €4 a night based on the type of accommodation, with discounts applying for longer stays after the ninth day

Children under 16 are exempt from existing and proposed Spanish tourist taxes.