Those fearful that a tourist tax is about to be suddenly applied need not be too alarmed. This, at least, is the implication of what Balearic vice-president and tourism minister Biel Barceló is saying. He first wants to introduce proper regulation to the non-hotel accommodation sector before such a tax is introduced.
There is a great deal of sense in this. Firstly, such regulation would go some way to ameliorating hoteliers' concerns that it will be they who bear the brunt of a tax: under its previous incarnation, they bore all the brunt. Secondly, if more properties come to be registered, then the regional government will be able to raise greater revenue from the tax. This would mirror the situation in Catalonia, where a more permissive regime in terms of which types of property could be registered as private holiday accommodation was driven at least in part by a desire to maximise revenue.
Essentially, therefore, two of the great controversies of Balearic tourism will coalesce and form one massive controversy. The hoteliers, while they might be reassured of a determination on behalf of Barceló to be as inclusive as possible when it comes to the application of the tax, will not take kindly to a system which may establish a register of holiday accommodation that they have, for years, sought to prevent.
In practical terms, as far as tourist tax implementation is concerned, if it is to be dependent upon the registration factor, then this will now occur some way down the line. Legislation for accommodation regulation will take time, and even greater time will be needed for it to be into effect. Property owners, one would imagine, would be given a reasonable period of grace in order to comply with whatever this legislation might entail, and if it were to also include a quality system - akin to Catalonia's - which identifies the standard of accommodation and its services, then this would add further time.
The heat being generated by both issues has been increasing in line with the temperatures of high summer. Exceltur, a body which represents some pretty exclusive hotelier interests, has been going full frontal with its propaganda against private accommodation. While some of what it and its researchers - Ernst & Young among them - have to say is perfectly legitimate, but the animosity towards alternative accommodation and especially P2P services such as Airbnb doesn't do it total credit, and there is research which takes issue with its apocalyptic (for hoteliers) vision. Still, Exceltur does accept the need for proper regulation and a further need to eliminate the confusion that surrounds private accommodation rental, something that is heightened by the lack of standardised regulation across Spain as a whole.
Exceltur's latest broadside is to report that Palma has the highest level of illegal rental in the country, something exacerbated by the sheer lack of inspectors. In this regard its report is not wrong and it exposes one of the great fault lines in governmental desires (those of the previous government) to get tough. The new government faces exactly the same issue, and whether it is regulation on private accommodation, tougher standards for all-inclusives or whatever, the sheer impossibility - on cost grounds - for there to be an army of inspectors will always render much legislation all but redundant.
Given this, it is more urgent than ever to introduce some pragmatism to legislation. By reducing through more sensible regulation the amount of accommodation deemed to be illegal, then the accommodation which remains genuinely illegal would be easier to monitor: all things being relative.
Barceló will have doubtless taken note of opinions expressed by mayors of some of Mallorca's principal tourism municipalities - Alcúdia, Andratx, Santanyi among them - who advocate new forms of regulation for apartments. He would do well to sit down with these mayors and counsel their views. It is no longer the case that certain towns, e.g. Pollensa, have a disproportionately high amount of private accommodation: P2P and economic crisis have widened the supply across all towns.
Arriving at something like satisfactory regulation will not be straightforward, making a delay to the introduction of a tourist tax potentially even longer. And one hopes that as and when regulation is drawn up it isn't as woolly as the thinking currently being applied to the tourist tax and how it would be collected. Basically, the government doesn't know what sort of mechanism would be best and whether it might have to rely on the agreements of authorities like AENA in order for the tax to be levied on arrival, a mechanism which, for a variety of reasons, would in any event be undesirable.
Showing posts with label Private holiday accommodation. Show all posts
Showing posts with label Private holiday accommodation. Show all posts
Saturday, July 11, 2015
Wednesday, February 25, 2015
It's Back: The eco-tax
So, it's pretty much official. It has yet to be ratified, but a Balearics eco-tax, or a tax on tourists under some other name, will in all likelihood feature in the manifestos of Podemos, Més and PSOE. If, as seems possible, these three parties form a coalition government, an eco-tax it almost certainly will be.
It comes as no surprise that Podemos and Més should favour such a tax. PSOE is more of a surprise. I had previously doubted that PSOE would wish to revisit the crash scene of a tax it was responsible for introducing during its first administration (the pact of 1999-2003). The PSOE hierarchy might, when push comes to manifesto shove, take the view that it is too emotive an issue and too much of a risk, but Cosme Bonet, one of the party's electoral programme co-ordinators, appears to believe it is a risk worth taking in order that "tourism contributes to the conservation of the environment". He prefers to not refer to the tax as an eco one, but eco-tax is precisely what it would be.
Bonet has also said that it would be a tax with the consensus of the tourism sector. If he believes there will be consensus, he is probably deluding himself. The hoteliers, for one, will take a great deal of persuading. It was, after all, they who got the Matas Partido Popular administration from 2003 to abandon PSOE's unpopular tax. There again, the hoteliers had every reason to have been indignant with the old tax. It was they who shouldered the burden for its collection. One of the flaws of the eco-tax was that it was discriminatory; it was not applied to non-hotel accommodation.
This time, as far as the Més spokesperson David Abril is concerned, the hoteliers will not be singled out. The tax would be universal, and by that he means the inclusion of private holiday accommodation, currently not regulated, that Més would regulate. As PSOE has previously suggested that it would also seek regulation and as Podemos has intimated as much, a tax would apply more widely, just as it does in Catalonia, where private accommodation is properly registered and regulated. But this will hardly be a move to mollify the hoteliers or guarantee a consensus.
Tourist taxes are the flavour of the moment and not only among the Balearics left. In the Canaries, the Nueva Canarias party has presented a proposal for a tax to the regional parliament. Its purpose would be to raise additional funds for modernising outdated resorts and tourist services. The party reckons that 100 million euros could be raised. The hoteliers in the Canaries are dead against the idea. Among reasons for their objections is the Balearics eco-tax fiasco. Others include arguments that the sector is over-taxed as it is and that far too little of the revenue raised by the Canaries' tourism sector actually finds its way back into the system. This is a reasonable argument. The tourism sector generates tax revenues of over 1,500 million euros annually, yet, as an example, only 17 million are earmarked for tourism promotion (which is still a lot more than in the Balearics). It is an argument which, not for the first time, raises questions as to how tax revenues raised by the regions are then redistributed and used.
In Madrid, the PSM (Madrid socialist party) wants to introduce a tourist tax, one that has been spoken about for years but regularly rejected. The difference here though is that it would be a tax for a city, and there are plenty of examples of European cities which have such a tax. The Canaries' objections refer to the fact that tourist taxes are applied to cities and not tourist regions, but they then run up against one very important exception. Catalonia. Its tax is for the whole region and so includes tourist areas such as the Costa Brava as well as Barcelona.
Catalonia's experience of a tourist tax was always going to be one closely observed by other regions of Spain; it hasn't had any harmful impact. It is a tax that isn't too onerous (ninety cents a night is a typical rate) and that is limited in terms of the number of overnight stays: for a two-week holiday, for instance, it only applies to a maximum of seven nights. But Catalonia is not Mallorca and nor is it Tenerife. It clearly has hugely popular mass-tourism areas, but these don't generate quite the same media interest that Mallorca does. The old eco-tax was as much a PR disaster because of negative international media coverage as it was a disaster of discriminatory implementation. Any new tax would come in for the same treatment; the same hue and cry. Would it, therefore, be too great a risk?
It comes as no surprise that Podemos and Més should favour such a tax. PSOE is more of a surprise. I had previously doubted that PSOE would wish to revisit the crash scene of a tax it was responsible for introducing during its first administration (the pact of 1999-2003). The PSOE hierarchy might, when push comes to manifesto shove, take the view that it is too emotive an issue and too much of a risk, but Cosme Bonet, one of the party's electoral programme co-ordinators, appears to believe it is a risk worth taking in order that "tourism contributes to the conservation of the environment". He prefers to not refer to the tax as an eco one, but eco-tax is precisely what it would be.
Bonet has also said that it would be a tax with the consensus of the tourism sector. If he believes there will be consensus, he is probably deluding himself. The hoteliers, for one, will take a great deal of persuading. It was, after all, they who got the Matas Partido Popular administration from 2003 to abandon PSOE's unpopular tax. There again, the hoteliers had every reason to have been indignant with the old tax. It was they who shouldered the burden for its collection. One of the flaws of the eco-tax was that it was discriminatory; it was not applied to non-hotel accommodation.
This time, as far as the Més spokesperson David Abril is concerned, the hoteliers will not be singled out. The tax would be universal, and by that he means the inclusion of private holiday accommodation, currently not regulated, that Més would regulate. As PSOE has previously suggested that it would also seek regulation and as Podemos has intimated as much, a tax would apply more widely, just as it does in Catalonia, where private accommodation is properly registered and regulated. But this will hardly be a move to mollify the hoteliers or guarantee a consensus.
Tourist taxes are the flavour of the moment and not only among the Balearics left. In the Canaries, the Nueva Canarias party has presented a proposal for a tax to the regional parliament. Its purpose would be to raise additional funds for modernising outdated resorts and tourist services. The party reckons that 100 million euros could be raised. The hoteliers in the Canaries are dead against the idea. Among reasons for their objections is the Balearics eco-tax fiasco. Others include arguments that the sector is over-taxed as it is and that far too little of the revenue raised by the Canaries' tourism sector actually finds its way back into the system. This is a reasonable argument. The tourism sector generates tax revenues of over 1,500 million euros annually, yet, as an example, only 17 million are earmarked for tourism promotion (which is still a lot more than in the Balearics). It is an argument which, not for the first time, raises questions as to how tax revenues raised by the regions are then redistributed and used.
In Madrid, the PSM (Madrid socialist party) wants to introduce a tourist tax, one that has been spoken about for years but regularly rejected. The difference here though is that it would be a tax for a city, and there are plenty of examples of European cities which have such a tax. The Canaries' objections refer to the fact that tourist taxes are applied to cities and not tourist regions, but they then run up against one very important exception. Catalonia. Its tax is for the whole region and so includes tourist areas such as the Costa Brava as well as Barcelona.
Catalonia's experience of a tourist tax was always going to be one closely observed by other regions of Spain; it hasn't had any harmful impact. It is a tax that isn't too onerous (ninety cents a night is a typical rate) and that is limited in terms of the number of overnight stays: for a two-week holiday, for instance, it only applies to a maximum of seven nights. But Catalonia is not Mallorca and nor is it Tenerife. It clearly has hugely popular mass-tourism areas, but these don't generate quite the same media interest that Mallorca does. The old eco-tax was as much a PR disaster because of negative international media coverage as it was a disaster of discriminatory implementation. Any new tax would come in for the same treatment; the same hue and cry. Would it, therefore, be too great a risk?
Subscribe to:
Posts (Atom)
