The Valencian socialists thus park the introduction of the tax in the document that they will take to a congress that, precisely, is held in the tourist capital of the Costa Blanca, in Benidorm. There, the Hotel and Tourism Business Association of the Valencian Community (Hosbec) has categorically refused to impose a tax on tourists. For the hotel management, the creation of this fiscal figure is “inconceivable”, focusing on the 10,000 million euros that the tourism sector has lost with the “most brutal” crisis it has ever experienced.
However, they are not closed to a debate on a future implantation where, yes, they put rules: that each city council decides if it wants to tax tourist stays in its locality, “based on the characteristics and circumstances of its tourism”, and that the tax has “a clear municipal vocation.” Something that, at first, Compromís might be willing to accept, which postpones its implementation to the end of 2022 or early 2023. However, Unides Podem, which has been pressing to impose this tax since 2017, requires that it have an autonomous section and another municipal, which the PSPV rules out outright. The Minister of Finance, the socialist Vicent Soler, is the one who champions the refusal to implement the application of the regional tax, which he describes as “imprudent” for a sector, tourism, which accounts for 15.5% of regional GDP. with 3,600 million euros of income, and about 16% of employment.
In the document, 240 pages long and coordinated by the Minister Arcadi Spain, the PSPV endorses the report of the committee of experts for the tax reform of the Valencian Community. This document emphasizes that the negative externalities caused by activities related to tourism in terms of pressure on the environment, among which they cite the occupation of natural spaces, water consumption or spending on sanitation, could be offset by this tax. However, both that report and the PSPV make it clear that it is not the time to establish it until the post-covid recovery materializes and that now the priority is to preserve jobs and minimize the costs of the sector, at the regional level, to increase its economic attractiveness due to the strong competition it has with other markets.
Tourism Cooperation Fund and part of VAT as compensation
The PSPV brings in its political presentation to its congress in Benidorm a series of alternatives to the tourist tax to compensate for the “damages” suffered by municipalities that take on a large amount of floating population and tourists, due to their higher cost of services. Thus, the Socialists are betting on a specific line of the Local Cooperation Fund for Tourist Municipalities and that, since the approval of the budget, it has an adequate appropriation that increases progressively year by year.
In addition, regarding the Local Finance Law, they demand that the central government modify it so that not only the number of second residences in a municipality prevails, but also overnight stays in tourist accommodation, something that was left out when it was approved by the Government of the popular José María Aznar. In addition to including these overnight stays, the PSPV intends that in this law the percentage of state taxes that are paid to the destination be changed, since they are tobacco and hydrocarbons, consumptions that, it says, “are being reduced.” Instead, the document indicates that it would be more convenient to allocate part of the VAT collected in the corresponding municipality.
Socialists, on the other hand, call for a new tourism model that enhances inland destinations, beyond sun and beach destinations, to promote seasonal adjustment, and they are committed to diversifying demand and supply to avoid dependence on certain markets. , like the British, which, they indicate, is concentrated in very specific areas and only benefits them.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.