The Balearic government has revealed that it only wants tourists to pay the controversial tourist tax which is paid by all – including Spanish citizens – who stay in hotels and apartment complexes across the archipelago, which includes the islands of Majorca and Menorca.
The move, which is currently being actively investigated by the local government, will be welcomed locally but could cause an outcry internationally.
The archipelago attracted 21 percent of the over 17.2 million tourists from the UK in 2023, making it the second favourite Spanish destination, behind only the Canary Islands with 31 percent. The islands also received the highest tourist spending by the British, 21 percent of the 19.9 million euros of total expenditure, according to a fact sheet by Turespana.
When it was introduced, everyone was required to pay the charge otherwise it would break European Union law. The EU said at the time that it would be a discriminatory charge if it was only levied on tourists.
However, officials from the Balearic government are looking at ways to change the ruling.
When it was announced, initially it was said that the money from the controversial levy would be used to improve holiday resorts and ease the environmental footprint left by decades of overtourism.
However, the money has also been used for projects to help, for example, the agricultural sector.
Since its introduction in 2016, it is believed that a total of 120 million euros (just under £100million) is raised each year as a result of the tax. According to the government website, the latest rates include four euros (£3.33) per day for the most luxury hotels and tourist apartments and two euros (£1.66) for holiday rentals, rural hotels and agrotourism accommodation.
Hostels, guest houses and campsites levy a one euro (83p) charge.
Tourist cruise ships are also required to pay two euros, with those ships that have their base port in the Balearics exempt. Children under the age of 16 are also exempt from the tax.
Long-term holidaymakers also have a 50 percent discount on the tax starting from the ninth day of their stay at the same accommodation.
Certain sections of the Balearic parliament also want the cost of the levy to be increased, but so far this move has been rejected.
Residents have raised concerns that they are still required to pay the tourist tax despite also paying their taxes locally. A large number of local residents take advantage of low-season hotel breaks on the island.