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Home Europa Press

PSOE Submits PNL to Request Canary Islands Government for Decree Law on Tourism Tax

April 12, 2024
in Europa Press
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PSOE Submits PNL to Request Canary Islands Government for Decree Law on Tourism Tax
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The proposition aims to utilise the collection for achieving a more equitable distribution of wealth and meeting the 2030 Agenda

SANTA CRUZ DE TENERIFE, 12th April. (EUROPA PRESS) –

The Socialist Parliamentary Group has officially submitted the Non-Law Proposition today in the Canary Islands Parliament, requesting the Canary Islands Government to pass a decree law integrating the introduction of a tax on tourist stays with final collection.

The proposal, as reported by Europa Press and scheduled for discussions in the upcoming Plenary Session of the Assembly before the end of this month, aims to achieve a more balanced distribution of the wealth generated by tourism, contribute towards fulfilling the objectives of the Canarian Agenda for Sustainable Development 2030, and enhance the sustainability of the region, whilst allowing for its further development as a bill.

Justification for the tourist tax is based on the fact that tourism serves as the primary driving force of the economy in the Canary Islands. Despite the absence of tourism during the pandemic, economic indicators in the subsector showed recovery and improvement last year.

According to the Tourist Spending Survey by Promotur Turismo de Canarias, the archipelago welcomed 14.1 million foreign tourists in 2023, reflecting a 6.3% increase from 2019, when 13.27 million tourists visited the Canary Islands.

This surge in visitor numbers led to tourist turnover rising from 14,903 million euros in 2019 to 19,565 million euros in 2023, marking a 31.3% increase. Moreover, spending per tourist per trip witnessed a 23.5% rise over four years (from 1,123 euros in 2019 to 1,387 in 2023), and daily spending per tourist rose from 137.4 euros in 2019 to 167.8 euros in 2023 (a 22.1% increase).

In addition to these figures, domestic tourism also contributed, with over two million tourists in 2023, pushing the total number of visitors to the archipelago to over 16 million.

Data from the Canary Islands Institute of Statistics (Istac) revealed that in 2023, hotel and non-hotel establishments (including apartments, campsites, rural tourism, and hostels) on the islands recorded 95.7 million overnight stays, representing a 10.4% increase compared to the previous year.

Overall, there were 13,564,375 accommodated travellers, which is an 8.95% growth from 2022, while the total income received by all hotel and non-hotel establishments amounted to 4,918 million euros in 2023, indicating an 18.39% increase from 2022.

Despite the “very good performance” of the tourism subsector in recent years, the socialists pointed out the existence of another reality characterised by “low wages, precarious employment conditions, rising cost of living, and the challenge of accessing decent housing at affordable prices”.

SOCIAL AND ENVIRONMENTAL CHALLENGE

Furthermore, according to the Sustainability of Tourism in the Canary Islands report for 2023 prepared by a research team from the University of La Laguna (ULL) and the University of Las Palmas de Gran Canaria (ULPGC) under the Canary Islands Tourism Observatory, the islands face “social and environmental challenges” in managing tourism due to the high volume of overnight stays concentrated in specific areas of the territory, with nearly half (46.74%) occurring in protected natural spaces.

The socialists stated that tourism, as an activity, should continue to enhance social well-being and economic development in the archipelago. However, it must also ensure its sustainability over the medium and long term across social, economic, and environmental aspects, in line with the provisions of the Autonomy Statute.

They cautioned that “inaction” could jeopardise tourist activity, especially when, despite increased revenue from IGIC, the Canary Islands have the second-highest rate of population at risk of poverty in the country, highlighting tensions in basic infrastructure such as zero-energy solutions, water scarcity, wastewater discharges, and traffic congestions, among other adverse impacts.

Citing articles 4 and 6 of Organic Law 8/1980, dated 22nd September, on Financing of the Autonomous Communities and the principle of financial autonomy enshrined in article 171 of the Autonomy Statute, the Socialist Group supported its proposal.

They elaborated that various tourist destinations worldwide have successfully implemented taxes on tourist stays. In the case of the Canary Islands, they stressed that the revenue generated should primarily aim not only at enhancing living conditions across the entire archipelago but also at introducing specific policies to ensure a more equitable distribution of wealth and mitigate the negative impacts generated by a vital sector for the islands.

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