Spanish Businesses Respond to Catalonia’s Tourist Tax Increase
MADRID – In a bold move, the authorities in Catalonia have announced plans to double the tourist taxes this year, positioning the region among the highest rates in Europe. This initiative is part of a broader strategy aimed at addressing the challenges posed by overtourism. Spain finds itself at a crossroads, grappling with the need to protect its flourishing tourist sector, which constitutes approximately 12 percent of the national GDP, while simultaneously confronting a mounting housing crisis. Critics argue that the proliferation of tourist accommodations in major urban centers like Barcelona, Madrid, and Malaga exacerbates the issue of affordable housing.
Last summer, Barcelona witnessed protests where demonstrators armed with water pistols confronted tourists, asserting that the rise of short-term rental flats was depriving locals of affordable housing options. In response to these concerns, Catalonia’s left-wing coalition government has committed to allocating 25 percent of the additional revenue generated from the increased tourist tax towards developing social housing.
Details of the Increased Tourist Tax
The new tax structure will significantly impact visitors, especially those staying in upscale hotels. For instance, the daily tourist fee at five-star hotels in Barcelona will surge from €3.50 (£2.90) to €7 (£5.80). Likewise, guests at four-star establishments will see their tax rise from €1.70 (£1.40) to €3.40 (£2.80). Tourists renting flats will now be charged €4.40 (£3.60) per day, a notable increase from the previous €2.25 (£1.90).
For cruise passengers spending less than 24 hours in the city, the tax will also see an increase, rising from €3 (£2.50) to €6 (£5). Outside the city limits, charges will escalate from €1.20 (£1) to €6 (£5) per day, varying according to the quality of accommodation. Additionally, a 10 percent VAT will be applied to the tax, further increasing the financial burden on tourists.
- Total revenue from the tourist tax in 2023 reached €90 million (£74 million).
- The new tax structure is expected to generate €200 million (£165 million) for the regional government in the upcoming year.
- Approximately 15.4 million tourists visited Barcelona last year, marking a slight decline of 0.2 percent compared to 2022.
David Cid, a spokesperson for the far-left Comuns party, which supports the Socialist regional government, expressed confidence that the increased tax would not deter visitors. He stated, “Many Catalans are facing significant hardships, and I believe that tourists who choose to visit us can contribute a little extra to help us gather more resources, particularly for housing, which is currently the most pressing issue in Catalonia.” Cid further emphasized that those paying between €300 (£250) and €400 (£330) for hotel accommodations could easily afford the additional €7 tax.
However, the response from business organizations and hotel operators has been critical. They argue that this tax hike will render Barcelona one of the most expensive destinations in Europe, placing undue strain on tourist-dependent businesses. The Barcelona Hotels Guild issued a statement highlighting that if this measure is implemented, Barcelona would surpass cities like Paris and Rome in terms of tourist tax across all hotel categories, despite having lower average hotel prices.
Comparative Tourist Tax Rates
The guild pointed out that the addition of VAT to the tourist tax would result in five-star hotel guests paying a staggering €12.10 (£10) per day, while four-star guests would face a charge of €8.14 (£6.70). For comparison, Paris currently imposes a tourist tax of €11.38 (£9.40) per day on five-star hotel visitors, while Rome’s highest daily tax stands at €7 (£5.80).
The Hotel and Restaurant Business Confederation of Catalonia (Confecat) has expressed its strong disapproval of the tax increase, condemning what they describe as the “fiscal asphyxiation” of the tourist accommodation sector. They assert that they are unwilling to continue serving as a perpetual financial resource for local administrations.
