The Best Tax In Catalonia

Could Palma and Mallorca be beneficiaries of the Catalonian tourist tax? The tax, described by the director-general for tourism in Catalonia as being the "best tourist tax in Europe", has been modified since its first announcement. It won't be as high as was envisaged, under-16s will be exempt, and it won't now come into effect until November.

Marián Muro, the director-general, believes the Catalonian tax will be the best because regular tourist families won't be penalised, i.e. the kids won't have to pay. It will also differentiate between Barcelona, where there is a proliferation of four and five-star hotels, and other parts of Catalonia where there aren't such hotels; the tax is at its highest (2.50 euros per overnight stay) for five-stars.

Such a geographical distinction may contribute, in Muro's mind, to the tax being the best, but it is not a virtue that cruise operators agree with. Cruise ships are being bundled in with five-star hotels; hence, a 2.50 euro charge. Leading cruise operators - Carnival, Costa and Royal Caribbean - have all expressed their annoyance, and so they might decide to give Barcelona a wide berth and head instead to Valencia or Palma.

The operators say that they cannot claw the tax back from passengers (presumably because bookings have already been finalised), and so they will be out of pocket. They are also unhappy as they feel the tax is something of a kick in the teeth for having made Barcelona the leading port for cruises in the Mediterranean.

What is confusing is whether the tax will be applied regardless of whether a ship stays in port overnight. Marián Muro has been at pains to point out, in spinning her best tax line, that the tax isn't one for a service but on overnight stays in regulated establishments, including cruise ships.

It is a bizarre way of trying to justify this "best" tax. A tax is a tax is a tax, whatever its basis. But if it really is a tax on overnight stays, then why don't the ships just leave well before midnight? At random, I looked up some cruise schedules and one, for the Costa Atlantica, starting from France and going to Palma and then Corsica via Barcelona, is in port in Barcelona for a mere six hours, departing at eight in the evening. So how could this qualify for a tax?

The cruise operators make the point that ships do only stop off for a short period of time. In this respect, ships aren't like hotels and nor are ships' passengers like hotel guests. Of course they're not. But the Catalonia tax is not one on usage or for the environment. It is unashamedly one that will be used to fund Catalonian tourism promotion, and this includes ensuring the Barcelona Formula One grand prix and "maintaining Ryanair" (whatever this is supposed to mean, though one can hazard a reasonable guess).

However the tax is ultimately applied, it could be good news for Mallorca. But for how long? The Balearic Government has thus far eschewed the revival of some form of tourist tax, but, and to the dismay of the European Tour Operators Association, such a tax is becoming increasingly common in the Mediterranean. Rome and Venice, for instance, both introduced one last year. A tourist tax is being seen as an easy way of raising revenue.

For the cruise operators, there is a particular issue. If taxes were imposed elsewhere, then the cost of cruises would be affected. Well yes, but guests staying seven nights in Barcelona are going to be affected just as much. And here is the nub. Might all types of tourist decide to give Catalonia a miss because of the tax? This remains to be seen, but if there were negative publicity, the tax might have some impact.

Great for Mallorca you might think, but this negative publicity could rebound on the island. Not because it has a tax, but because of misreporting. As an example, Royal Caribbean, on its blog and under the headline "Royal Caribbean protests new tourism tax in Spain", implies that the tax is being applied throughout Spain and therefore Mallorca.

The chances are that the Balearic Government will revisit the idea of a tourist tax, but, if it has any sense, it won't do until it sees how things pan out in Catalonia. If the cruise operators don't go through with a threat to bypass Barcelona and if other tourists keep packing themselves onto the Costa Brava, then don't dismiss the possibility that a new tax will be coming to Mallorca some time soon. You never know, though, it might be the "best" tourist tax.


Any comments to andrew@thealcudiaguide.com please.