Tuesday, September 22, 2015

Backlash And Uncertainty: Tourist tax

And so it has begun. With inevitable predictability the British press are on the case - that of the tourist tax. Red top and broadsheet alike, The Mirror, The Mail, The Guardian, they are all flagging up a similar message, and it's one that comes with a price tag. 100 euros, 110 euros. Do I hear more? God help us when Bild and the German press work up a full head of media steam.

It isn't only the press. The poll being run on the Bulletin's website currently has an 86% rejection of the tax. Take a look at forums, such as Trip Advisor's Majorca forum, and you will find similar messages. Principally, they reject the tax, but there is also enormous uncertainty. Is it coming in next year? How much will it be? Neither you nor I can say with certainty. Nor, one fancies, can the government, despite Biel Barceló insisting that it will be "applied" in 2016.

Barceló is fast running out of any goodwill that might have surrounded the introduction of the tax, with the main pocket of this goodwill being home-grown. Opinion surveys have shown that a majority of Mallorcans - those who aren't, for instance, hoteliers - support the tax, and the majority hasn't been fractional: it has been in the order of 70%. For Barceló this could be taken as confirmation of what he referred to, in so many words, as the will of the people. As ever when politicians invoke elections and manifesto pledges, they can distort the will. Were people voting for a tourist tax?

At least Barceló can have a clear conscience. Més, his party, and Podemos both had the tax in their manifestos. PSOE weren't as clear. The tourist tax may become this government's TIL trilingual teaching, but it was a potential that was clearly known about before the elections. TIL was a post-election invention of the Partido Popular. Those who claimed it was a manifesto pledge were either ignorant, lying or both: it was not.

So, perhaps Barceló is right, up to a point, in suggesting that the tax was an election "winner", if only with some elements of the electorate. Now, however, he faces a backlash. To avoid potential European challenges and sanctions, the tax cannot discriminate. If you are a resident of Mallorca and you want to spend a weekend in a hotel, you will also pay the tax. The Spanish have a word. "Tontería." Foolishness. An utter nonsense. There has been another survey. Should residents have to pay? No, they should not. The majority is overwhelming.

It is a nonsense, and it is one to which the leader of Podemos, Alberto Jarabo, has made reference, albeit in the context of the frankly insane notion of attempting to collect the tax at airports and ports. Jarabo has said that the tax should be on those who are subsidised in their use of services, resources and infrastructure by local taxpayers. His choice of words was somewhat strident, but the sentiment, the principle is not, in my opinion, totally wrong. If there is any justification for a tourist tax, it is on the moral base of everyone, tourists included, contributing directly to resources that they consume, such as water, and to services from which they benefit, e.g. health provision.

But then Jarabo is alluding to yet another purpose for the tax, one that differs from Barceló and his undefined uses for innovation, resort improvements and the environment. It differs also from President Armengol who appears to believe that the tax will right the wrongs of Madrid's funding.

These differing interpretations are further adding to what is now becoming just as important an issue as the tax itself: the sheer uncertainty. And this uncertainty is arising at a time when bookings for 2016 will be being considered and made. For a tourism minister to allow such uncertainty borders on the irresponsible. Hence, the British press can make an estimation, just as I have, as to how much it will cost. 100 euros, 110 euros would be about right. Fourteen nights for a family of four at two euros a head would in fact be 112 euros. It may not be anything like as much if the levy is not two euros but one and if children are excluded, as is the case in Catalonia, if there is a maximum number of nights (seven), as is also the situation in Catalonia.

The backlash in the foreign press has started, as we all knew that it would start (except, it would seem, the government), and now there is also a backlash from the very people who supposedly, according to Barceló, voted for the tax. It should be ditched, and ditched quickly. It won't be because he's in too deep, but might, if it were to seek one, the local backlash actually give the government a get-out clause?

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