Hoteliers highlight concerns about 5% tourist tax hitting Malaga residents when holidaying in the region

In the midst of the controversy between detractors and defenders of the tourist tax in Andalucía, a recurring debate that has never been settled, Aehcos - the professional body representing hoteliers on the Costa del Sol - has pointed out that this measure will have a major impact on the cost of holidays for Malaga residents and those resident in Andalucía's seven other provinces.

In fact, 56% of the Spanish tourists that stay in hotels in the province and on the Costa del Sol come from Andalucía itself. Indeed, Aehcos has put a number on it: the cost of holidays for Malaga residents travelling in the region will rise by 4.8% if the tax is implemented. What is more, they give the example of an average Andalusian family, consisting of two adults and two children, who wish to spend the Puente del Pilar public holiday this very weekend in Malaga, staying say three nights in two hotel rooms at around 125 euros per booking. By staying in the province they would have to pay 4.8% more for this accommodation. "By applying a tax of three euros per person per night, following the example of the Balearic law in a three star hotel, the bill would be increased by a total of 36 euros. In other words, the trip to Malaga would be 36 euros more expensive", explained a spokesperson for Aehcos.

Aehcos also mentioned that in 2023, according to data from Turismo y Planificación Costa del Sol (the tourism planning and marketing company overseen by Malaga's provincial authority), Malaga welcomed 1.7 million visitors from Andalucía who stayed in tourist lodgings such as hotels and guesthouses, which represents 56.2% of the total number of recorded domestic tourism. As Aehcos pointed out, "these tourists from Andalucía generated 5.7 million overnight stays in the province, which means that Andalusian tourists would pay more than 17.1 million euros for this new tax rate or, in other words, 22 out of every 100 euros collected would come out of the pockets of Andalusian tourists."

The association of hoteliers has reiterated its categorical opposition to the approval of the so-called tourist tax "due to the negative consequences that this would have on the tourist industry, while denouncing that this tax is in reality a tax, with no immediate return for the tourist industry." The president of Aehcos, José Luque, pointed out that "we are aware of the deficit of the local administration in providing services to its citizens, but the approval of the tourist tax would have a very negative effect on the competitiveness of the sector and, by extension, on the local and regional economy as a whole." He further stated that "its implementation would not have a guaranteed return to the tourism industry because taxes lack a final purpose, that is, its collection goes to the overall revenue of the governing bodies without a specific objective", to emphasise that the "economy of the whole of society would be affected because the increase in costs would be transferred to the increase in the CPI [consumer price index] and, therefore, to general inflation."

To hammer home his point he referred to similar experiences that have already been implemented in other regions of Spain such as the Balearic Islands and Catalonia, "where it has already been confirmed that the supposed purpose of this tax has not been fulfilled, as the money collected is being used to correct funding deficits in other public services."

Aehcos' final point of argument is that the tourist tax will also lead to a loss of competitiveness because "this price increase would have a negative impact on the pockets of families and, consequently, on tourist satisfaction, which would damage the loyalty and preferences of our visitors."

As an alternative to the tourist tax Luque proposes exploring other means of financing the additional costs faced by the councils in popular tourist locations, such as state subsidies from central government or subsidies from European funds. "Instead of introducing a general tax, we advocate the study and promotion of specific programmes and initiatives focused on promoting sustainability and efficiency in tourism management, wherever necessary," said Luque.