Two positions on the tourist tax: balancing growth with local concerns

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In recent discussions, Alicante and Valencia have seen a lively debate about a new tourist tax proposed by the Botànic government. The proposal aims to fund local tourism initiatives, yet many municipalities worry it will burden small businesses and visitors alike. Local leaders argue for a policy that supports the industry without overburdening employers or guests, with some suggesting a phased approach or tiered rates to ease the transition for cities that rely heavily on tourism from both Spain and North America.

Mas met with Fede Fuster, president of the Valencia Community Hospitality Business Association, and other board members, along with representatives from Adestic, at the Valencia Institute of Tourism Technologies Invattur. The gathering focused on how innovative firms contribute to sustainable community tourism and how Compromís and the coalition intend to shape tourism policy in the next government term. The conversation also touched on how a renewal of the Generalitat’s policy could move forward should the coalition retain leadership.

Two positions on the tax: from support to reconsideration

At the meeting, Mas, who serves as Consell’s vice-president, discussed criticisms raised by nationalist groups over several years. They highlighted not only the tourist tax but also concerns about job security within the sector, calls to regulate vacation rentals, and worries about a shrinking local economy. The discussion emphasized the need to ensure that policy rewards well-run businesses and improves working conditions for staff across the hospitality sector.

“Tourism remains a highly professionalized engine for Valencia and Spain, yet it must address the job-insecurity issues it sometimes creates. Therefore, the policy should reward responsible companies and, importantly, bolster the working conditions of employees,” Mas noted after the talks. The aim is a balanced approach that safeguards both competitiveness and protections for workers.

University, mayors and tourism professionals unite against the tax, warning it targets Benidorm

Participants pledged to work with humility and determination to ensure that the region’s tourism strategy improves quality of life, remains balanced, and accounts for climate-change impacts. The group underscored the need for a long-term vision of tourism that aligns sector goals with community needs, and for a model that prioritizes knowledge and stability over insecurity. One regional candidate welcomed the Tourism Act influenced by neighboring regions and called for prioritizing aid to the sector while developing a methodology to help firms provide better working conditions, prevent workplace accidents, and establish sensible limits on daily tasks and hours for staff such as floor attendants.

Mas also met with representatives from the Adestic technology cluster, underscoring the importance of embracing technology as a driver of growth. The exchange highlighted the role of digital resources and data-driven strategies in supporting a modern tourism economy that benefits both visitors and residents.

Other aspects of tourism

Compromís representatives argue that tourism should deliver more than economic gains. They advocate for a Tourism Indicators System to assess environmental, cultural, and social impacts while incorporating residents’ voices in decision-making. They emphasize listening mechanisms and citizen participation to gauge perceptions and steer management decisions toward inclusive growth.

Mas defended the intention to continue promoting a Valencia Tourist Accommodation Tax, drawing comparisons with similar schemes abroad and stressing that tourism costs should be shared fairly, not borne solely by locals. The policy design aims to support the sector while ensuring that visitors contribute to the upkeep of shared amenities and infrastructure.

The tourism tax, which will come into effect in December 2023, includes cruise passengers

Despite differences over the rate, Mas and hotel operators agreed on the need for stronger enforcement against unregistered employers and unregulated rental properties that rely on informal arrangements. Both sides also called for improved infrastructure, particularly rail and airport projects, to support better connectivity and visitor experiences. The discussion underscored a broader commitment to a comprehensive plan that integrates policy, infrastructure, and market regulation for a robust tourism sector.

Diversify and innovate

During talks with technology companies, Mas highlighted the value of clusters like Adestic, which pool knowledge and tech resources to support the industry. Supporting such networks and aligning public education offerings with the evolving needs of technology-driven tourism was presented as essential. He also outlined Compromís’ plan to modernize the Tourism Centers Network and position it as a benchmark for technology-enabled education and industry collaboration.

The coalition stressed its commitment to empowering tourism-related education, attracting investment, and ensuring that Valencia remains a forward-looking destination that blends culture, technology, and environmental stewardship for both residents and visitors alike.

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