Benidorm returned to the forefront this Wednesday as a rallying point for opponents of the tourist tax. The Valencian Community considered a levy on overnight stays in its hospitality sector, and the Valencian Institute of Tourism Technologies (Invattur), based in the city, hosted a briefing of a study commissioned by the University of Alicante’s Turisme Comunitat Valenciana. The aim was to evaluate the potential effects of implementing this tax.
Once again, a broad coalition of industry leaders and local government figures gathered in opposition. Prominent voices, including the widely respected Toni Pérez and the district Tourism secretary Francis Colomer, spoke out against their own party’s position on the rate. The event drew significant attendance from public officials and business leaders alike, highlighting a shared concern about the policy.
A UA report commissioned by Tourism lays out the arguments for enforcing the tourism tax
The UA study notes that the tax would be seen by proponents as a tool to fund tourism services, yet the stakeholders present argued that it would be inefficient, contradictory and unfair. They contended that the measure would hurt destinations, with Benidorm being singled out as particularly vulnerable. The room addressed the data they could rely on in making their case.
According to the UA analysis, if the tax is applied across participating municipalities, the Generalitat could raise as much as 53.6 million euros. Seventeen municipalities would be directly affected through Benidorm, accounting for roughly a third of the total. Given Benidorm’s reliance on overnight hotel stays and its role as a leading tourism employer within the region, critics warned that the city would bear a disproportionate share of the impact, while also contributing a substantial portion of regional revenue through tourism-related taxes.
main results
The event opened with remarks from Francesc Colomer, who framed the discussion around questions raised by Invattur’s presentation. Invattur positions itself as a source of high-quality information and as a bridge between academic research and industry needs during a period of parliamentary debate. The district secretary framed the study as a contribution that others might interpret in different ways as the conversation continues.
Armando Ortuño and Reyes González, researchers from the University Institute for Tourism Studies at the UA, provided the core findings of the report. They emphasized that, beyond the immediate economic effects, the proposal could undermine Benidorm’s relative advantages when compared to other Spanish and Valencian destinations. They warned that the policy would pressure wages in the tourism sector and could push prices downward, as seen in past economic downturns when room rates fell and took years to rebound.
The researchers also highlighted that revenue per available room, when measured against international and national benchmarks, is already lower in the Valencian Community. They pointed to Barcelona, Palma, and other destinations with higher RevPAR figures to illustrate how the tax might exacerbate profitability challenges for local hotels, potentially reducing investment in the sector and affecting overall tourism quality.
“Tourism tax, as recommended, is a tax applied to a specific tourist and business model co-opted with the most sustainable city in the Community”
The researchers also noted that, in practice, additional costs are often passed along to accommodation providers and tour operators. Even when prices are fixed in advance through long-term bookings, hotels, campsites and rental properties may bear a larger portion of the tax burden, which could ripple through the sector and affect pricing structures for upcoming seasons.
Attention was drawn to the weight of overnight stays in private accommodation. The study pointed out that holiday homes and private rentals would generally be excluded from the tax, creating a disparity that could undermine the perceived fairness of the measure. The analysis also documented how much of the tourist activity in high-demand municipalities is driven by private accommodations, underscoring potential inequities for regulated lodging and the undeclared rental market despite Turisme’s ongoing enforcement efforts.
As an example, the UA’s municipality-by-municipality comparison suggested that Benidorm and Torrevieja could collect tens of millions, while other areas with lighter reliance on hotels might see far smaller returns, highlighting the uneven distribution of benefits from the tax.
This tourism tax will be a parliamentary tour
Beyond concerns about branding and destination image, the UA professors noted questions about the administrative burden of implementing and managing the tax. They argued that the proposed levy targets a specific tourism and business model, as claimed by supporters, but warned about potential operational challenges for local administrations and service providers.
Contention
Following the study’s unveiling, a lively discussion unfolded. Mayor Pérez contributed to the debate with remarks aimed at the critics, while Dénia’s mayor Vicen Grimalt expressed clear opposition to the measure. In addition to local officials, senior figures from the Socialist Party participated, including tourism leaders and regional lawmakers who attended to voice their perspectives. The gathering also featured several mayors from nearby towns, underscoring the broad regional interest in the issue.
PSPV’s contradictions: vote in favor of the tourist tax, but recognize that it’s not a priority
Among the speakers, the only fully critical stance within Colomer’s presentation came from his assistant, Trini Castelló, a Socialist spokesperson at the regional parliament. She questioned the study’s conclusions and cited research from the University of Valencia suggesting that imposing the tax could reduce tourist numbers and that such levies often do not provide measurable demand-stimulating benefits. She argued that tourism revenue should support essential services and that the tax could threaten municipal fiscal autonomy, while noting that any schedule for rollout remained uncertain.
Instantly, Mayor Pérez challenged the notion of a voluntary tax, asking what would justify its implementation in the absence of a fixed timeline. He reminded attendees that tourists already contribute through value-added tax on services, accommodation, and other purchases, and he argued that Benidorm already makes substantial contributions to the public purse through its economic activity and employment generation.
“We have endured years of tight state funding. What the Generalitat should do is press Madrid for a fair share, not siphon funds from our visitors and our destinations,” declared Toni Mayor, president of Hosbec. Other participants, including regional opponents and supporters of tourism, warned that the tax could have far-reaching consequences for municipal budgets and for the hospitality sector as a whole. Critics from the lodging and camping sectors argued that rising costs would prompt shifts toward neighboring regions, and some noted that high taxation could deter new investments in the tourism economy.
Overall, the discussion reflected a broader concern about the balance between funding for public services and the competitive viability of popular destinations in the Valencian Community and beyond. The debate continues to unfold as policymakers weigh the potential fiscal benefits against the potential risks to tourism demand and local employment.