The meeting on the ecotax of the Pact for Sustainability ends in nothing

PalmThe meeting of the Pact for Sustainability, which was supposed to decide on the increase in the Sustainable Tourism Tax (ITS, known as the ecotax), ended in nothing. The government did not defend the tax increase it was advocating for just a few months ago. How advance the ARA BalearesThe government has backtracked and will not implement any of its flagship measures to combat overcrowding. Faced with this reality, the meeting between government representatives and representatives from the island councils, business organizations, and labor unions has become an exchange of opinions about the allocation of the Tourism Tax (ITS) funds. However, the debate on the advisability of charging tourists more for each night they stay in establishments on the islands has taken a back seat.

In statements to the media, the Minister of Labor, Catalina Cabrer, explained that the Government "presented the measure that had been initially proposed in Parliament," since the increase in the ITS (Tax on Supermarket Services) that reached the Chamber this Wednesday stems from an agreement reached by the PP (People's Party) and the PS (Socialist Party). However, she clarified that "no vote" was taken on the matter, nor was any decision made. "We all agreed that the debate should go further," she argued: "The question of what the objective of the funds raised should be has been raised." "Perhaps it is time to consult an expert, so that they can focus on how this tax is aligned within the framework of the Transition Agenda," she said. The UGT (General Union of Workers) representative, Pedro Homar, lamented in ARA Baleares that the debate had not had "the significance" he had hoped for. "UGT is in favor of raising the ITS (Tax on Land Use), we can afford it," they argued. "We have advocated for the revenue to be allocated to social issues, such as promoting the integration of people with disabilities, combating seasonal work, and reducing workplace accidents." In this regard, the union presented proposals to allocate the funds to housing access policies.

The PSIB spokesperson in the Balearic Parliament, Iago Negueruela, criticized the outcome of the meeting. "President Marga Prohens said she would raise the ITS, and today they meet behind closed doors to say she won't. It's another betrayal and a lie," he said. "Of the three anti-saturation measures announced by Prohens during the general policy debate, none will be approved: neither the ITS, nor the increase in the water tariff, nor the tax on... It's expensive."In turn, Podemos has presented its own proposal to increase the ITS. In a statement, the purple party accused the Government of "stageing an empty debate" at the Pact table.

"If we want to influence demand, we must act on supply."

The Confederation of Business Associations of the Balearic Islands (CAEB) reiterated its opposition to "any increase in the ITS" (Tax on Sustainable Tourism) in a statement. It also demanded a review of the current allocation criteria for the funds collected, as well as the acceleration of project implementation. Similarly, the hotel association also reiterated its rejection of the tax. María José Aguiló, executive vice president of the Majorca Hotel Business Federation (FEHM), insisted that "the proposal to raise the ecotax will be completely ineffective" in improving "the management of tourist flows": "If we want to influence demand, we must address supply." "The ITS is not an instrument for degrowth."

Celestí Alomar, the tourism minister who created the ecotax in 2001 alongside Francesc Antich, told ARA Baleares that "the Tourism Tax (ITS) cannot be used as a tool for reducing tourism." "Linking this tax to tourism containment is false," he insists. "Studies show it doesn't affect the flow of arrivals." However, he supports increasing the tax: "The current amounts are outdated compared to 2016, when they were implemented, and also compared to other tourist destinations." He also maintains that ITS funds should be allocated to "heritage, landscapes, and cultural protection—issues that have a direct impact on the tourism offering."