The meeting on the ecotax of the Sustainability Pact 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 The ARA Baleares is making progressThe 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 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 spend 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 Sustainable Land) that reached the Chamber this Wednesday stems from an agreement reached between the PP (People's Party) and the PSIB (Socialist Party of the Balearic Islands). 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 objective of the funds raised has been put on the table." "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. According to sources present at the meeting, the Government did not take a position on the initiative, although the Minister of Tourism, Jaume Bauzá, admitted that just a few months ago they were advocating for the increase in the ITS and he agreed with it. However, he did not emphasize this position; instead, the meeting focused on discussing the allocation of currently received funds.

UGT representative Pedro Homar lamented on ARA Baleares that the debate did not have the "importance" he had hoped for. "UGT is in favor of raising the ITS (Tax on Social Security Contributions), we can afford it," he argued. "We have advocated for its 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.

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 levy, nor raising the ITS, nor the tax on the 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 "staged 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. The executive vice president of the Majorca Hotel Business Federation (FEHM), María José Aguiló, 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."