There has been extensive discussion last month about the tourism tax Botànic wants to impose in the Community of Valencia. Much of the dialogue came from political forums, with fewer direct analyses from universities or legal and economic experts. The central question for many readers is how this tax would be applied in practice, especially given the potential increase in bureaucratic tasks for travel businesses. The initial pact suggested a moratorium on collecting responsibilities during a parliamentary pause, with possible resumption in 2024, causing questions about timing and implementation.
Those who doubt the administrative burden on hotels, campgrounds, and other tourism operators point to potential costs. Antonio Pérez, who oversees the financial committee of the Alicante Association of Economists, notes a trend of placing citizen-level workloads on businesses, which could raise management costs for tourism firms, particularly those handling VAT. On the other hand, if the rate targets higher quality tourism, accommodations might collect more revenue to reinvest in improvements.
Compromís steps up pressure with tourist tax: now focuses on industry instability
From a purely economic perspective, Pérez argues the burden needs careful consideration. The proposed fee would range from 0.5 to 2 euros, varying by accommodation type, and could reduce visitor numbers. He adds that the cost per person does not alone determine value, and revenues could fund tourism infrastructure. The strongest effect might be on family travel, where a week-long trip for four could incur a noticeable extra cost.
Former minister Manuel Alcaraz, a constitutional law professor at the University of Alicante, does not see legal problems with the framework since it falls under regional jurisdiction. He questions the moratorium, noting that laws typically take effect within weeks, and wonders how deferred start will work. He suggests the exchange with lawmakers should remain respectful and constructive even when emotions run high.
Álvaro Antón, a law professor at CEU Cardenal Herrera University, emphasizes that the policy is a tax rather than a simple rate. This distinction is a common point of contention, especially among opposition groups. He questions how funds will be redistributed and used once collected.
The Elche-based scholar also believes the parliamentary process could have benefited from a deep impact study on how tax enforcement would affect competitiveness, suitability, and alternative approaches. He advocates for technical analysis and public consultation, akin to EU practice.
Experts consulted also note that supporters of overnight tax charges have not produced a thorough, region-specific analysis. A study tailored to the Valencian Community could clarify whether copying Catalonia or the Balearic Islands fits local needs, given distinct regional characteristics.
Emilio Cencerrado, an economist who has studied tax policy in the region, views the proposal as legally straightforward and consistent with powers granted to the community. He notes the mechanism resembles existing models in the Balearic Islands or Catalonia and does not foresee major legal obstacles, as the state does not tax any kind of tourism accommodation at the same level.
A recurring question in UA and Valencia studies is whether the political debate around the tax has overshadowed practical considerations. Analysts highlighted that the new levy was projected to collect around 53 million, a relatively small figure next to the tourism sector’s broader economic footprint.
University studies in Alicante and Valencia
Researchers at both the University of Alicante and the University of Valencia have examined the proposed tourist tax. The Alicante study challenges the assumptions behind the new levy, while Valencia shows more cautious support for regulation within an EU framework and suggests a postponement. The pandemic’s lasting impact continues to shape these evaluations.
The Alicante report, funded by the Autonomous Tourism Secretary through the Valencia Institute of Tourist Technologies, finds that the tax does not pass a cost-benefit test and questions some arguments offered by proponents. The Valencia report notes that tourism taxes are spreading across Europe, with Portugal, Italy, and Croatia adopting similar measures, and it recommends an EU-aligned approach.
Will the measure pass before the assembly adjourns?
The tourism tax began its parliamentary journey on the 14th. Debate is expected to be lengthy, with some forecasts suggesting the legislature may not reach final approval in this session. The timing of the agreement will depend on the momentum set by the six parliamentary groups represented in the regional assembly.
The process after approval would involve sending the bill to a committee, which would draft a working proposal for discussion. The proposal would then go before the full assembly for a final vote. A new committee is expected to convene around October, with discussions continuing through winter and implementation beginning after the assembly vote.
No one in the Cortes can confirm exact dates, given the complexity of the process. The Legal Advisory Council’s input will be optional unless requested by the sponsors.