tourist fee

The Catalan Government earned €41 million last year thanks to the tourist tax, which represents a 6.56% increase over the figures from 2013. Since this tax was created in November 2012 with the aim of increasing revenue for reducing public deficit and having greater resources for tourism promotion, €82.3 million has been collected. Catalonia has been increasing its number of foreign visitors over the last two years, posting record figures of 15.6 million in 2013 and 16.7 million in 2014. Tourists pay the tax, which ranges from €0.50 to €2.50 per night per person, in relation to the type of accommodation, and the location. The tax includes several exceptions, such as for children, and it is not paid on stays of over 7 nights.

Despite a decrease in Russian visitors, Catalonia increased the number of international tourists it hosted during 2014. Some 16.7 million foreigners travelled to Catalonia last year, which sets a new historic record. In addition, it represents a 7.2% increase on 2013 figures. International visitors spent more than €15 billion during their stay, 6.1% more than in 2013. Therefore, foreign tourism accounted for some 7.5% of Catalonia’s entire GDP during 2014. Each tourist spent an average of €900 during their stay. The Catalan Minister for Business and Employment, Felip Puig, presented the figures on Wednesday and emphasised that the objective for future years is not so much to increase the number of tourists but rather to increase the revenue which they bring in. 

The number of tourists in Barcelona hotels grew by 0.7% in 2012 compared to the previous year. In total, Barcelona hosted 7.44 million tourists in the city’s hotels. A study by the Barcelona Tourism board revealed that the significant increase in foreign tourists compensated for the 6.8% drop in Spanish visitors. The number of tourists from Russia and Eastern Europe increased by 32%, those from the United Kingdom grew by 12%, those from the United States grew by 4.7% and those from Germany increased by 4.3%. Spanish visitors continue to be the largest group of guests to Barcelona hotels, with 1.62 million people.

During the first few hours of the implementation of the tourist tax, no problems were detected. The fee ranges from 50 cents to 2.5 euros per hotel per night depending on the accommodation category and zone, with a maximum of seven nights per person. Children under 17 and tourists from social programmes are exempt from paying the fee. Clients have not complained and most of them say that they understand the need. Hotel owners have adapted their software to include the tax payment, although they complain that they have to pay for this change. This type of fee is common in countries such as the United States, France, Italy, Germany, Austria, Belgium, the Netherlands, Morocco, Egypt and Japan. The Catalan Government expects the tax to raise €50 million, to be used for the promotion of tourism.

The Dutch newspaper NRC Handelsblad has published an interview with the President of the Catalan Government, Artur Mas. Mas states that “Catalonia’s intervention by Spain would be unthinkable” and “unfair, as no government has done as much as Catalonia's to adjust the economic situation”. Furthermore, he adds that “people’s reaction [against such an intervention] would be very strong”. NRC explains the austerity measures implemented by the Catalan Government to reduce its deficit, such as the drug prescription fee or public employee salary reduction. Furthermore, Mas complained that Spain’s Autonomies model has “decentralised spending but not revenue”; “we want to collect our taxes”, he affirmed, being another “state within a federal Europe”, contributing to regional solidarity.

The Catalan Ministry of Finance has confirmed the figures released on Thursday by the party running Catalonia’s Government. The drug prescription fee would add €180 million to the budget, and will also save money due to its dissuasive impact. The symbolic tourist tax, which will be implemented from November, would also bring in €60 million. The remaining €60 million will come from other taxes and public fees.

The Centre-Right Catalan Nationalist Coalition (CiU), which controls the Catalan Government, and the People’s Party (PP), the third political party in Catalonia’s Parliament, have agreed to reduce some of the fees from the original proposal, reduce the number of public companies, build new schools and community health centres, and allocate more money to municipalities and victims of terrorism. Furthermore, the agreement goes beyond the budget and foresees the development of laws and plans to foster employment, entrepreneurship and a spending limitation. CiU has denied that it has a “stable agreement” with the PP for the entire term. The PP has demonstrated its new central role in Catalan politics. Every opposition party has criticised the agreement.

The Centre-Right Catalan Nationalist Coalition ‘CiU’, which runs the Catalan Government, is close to reaching an agreement with the Conservative People’s Party (PP) on this year’s budget. They have been negotiating over the past number of weeks, but the PP has insisted on modifying two of CiU’s new measures: the tourist tax and the drug prescription fee. They have subsequently agreed to postpone the tourist tax until November 2012 and Barcelona will have a different fee. In addition, they have decided to exclude people with low incomes from paying the drug prescription fee.

The Catalan Government will reduce department expenditure by 3.8%, public sector prices will increase and real estate assets will be sold. In addition, a symbolic tourist tax and a universal fee for each drug prescription will be introduced. The Catalan Finance Minister, Andreu Mas-Colell, insisted that next year’s budget continues with the two-year adjustment plan, which has been designed to reach a 1.3% deficit objective in 2012. Basic welfare services and security and judicial policies are the areas least affected by the reductions. In the next few weeks, parliamentary negotiations will take place to approve the final budget.