Sustainable Tourist Tax
Source: Illes Sostenibles
Mallorca shows how tourism can be made sustainable through taxation
The Balearic government has implemented a sustainable tax on almost all visits to Mallorca. Mallorca’s ever-increasing population during high seasons has caused a degree of urban and environmental degradation. Hence, the primary purpose of the tax is to provide funding for natural conservation. The tax applies to all sorts of accommodation including hotels and house rental as well as cruise arrivals.
The tax rate depends on the type and cost of accommodation. Guests at luxury hotels are subject to a €4/night tax rate. For mid-range accomodation, the rate is €3/night while cruise passengers pay a rate of €2/night. In total, the tax brings in €120 million a year. During offseason, rates are reduced to attract arrivals all year round.
Initially, the tax was met with some skepticism as it was speculated to deter tourists from visiting. However, Mallorca’s number of arrivals has continued to increase even after the implementation of the tax.
The Balearic Islands use tourism to fund the protection of the protection of its cultural and natural heritage (11.4)
The tourism tax is policy that promotes sustainable tourism and preservation of the destination (8.9)
The tourist tax raises €120 million a year for natural and environmental conservation and restoration (15.1, 15.2, 15.4, 15.A)
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