Panic in Mallorca over calls for a new £13 tourist tax – 'now is not the time'

Plans to skyrocket the Balearic tourist tax to as much as €15 (£13) per night have hit a wall. One of the two biggest unions, the CCOO (Workers’ Commissions), was the original architect of the hike. The proposal was spearheaded by José Luis García of the CCOO and aimed to transform the current Sustainable Tourism Tax (ITS) from a simple fee into a ‘containment measure.’ By raising the rate to €15, the union hoped to actively discourage mass arrivals during the overcrowded peak summer months.

The UGT (General Workers’ Union) also initially backed the aggressive redefinition of the tax. General Secretary Pedro Homar previously argued that increasing the ITS was a vital investment in sustainability and a necessary engine for social rights, specifically to fund social housing and public services. However, a sudden shift in the global climate has dramatically altered the picture.

Days before the war started in the Middle East, the Balearic government postponed a key vote on raising the ITS during a meeting of its sustainability pact. Rather than approving or rejecting the increase, officials argued the discussion needed to go further focusing not just on how much to charge tourists, but on how the tax should work and where the money should be spent.

No clear timetable was set, though ministers said they wanted to avoid unnecessary delays and keep the process moving.

The debate quickly exposed divisions. Some called for revenues to be channelled into housing and social support, while others favoured reinvesting in tourism infrastructure. With no agreement on priorities, the vote was shelved in favour of further analysis, including potential input from external experts.

Despite the delay, both major unions, UGT and CCOO, have consistently supported raising the tax in principle.

They argue the ITS should serve a dual purpose: generating revenue and acting as a deterrent to mass tourism during the busiest summer months. Proposals discussed within the sustainability pact included increasing the rate to €15 and tightening enforcement against illegal holiday rentals.

UGT, led by Pedro Homar in the Balearics, has also pushed for a larger share of the funds to be directed toward housing, describing the tax as a tool for strengthening social policy as well as environmental protection.

When asked about the sustainability pact, Pedro Homa told Última Hora: “The war has completely disrupted this pact, which was designed for a context of stability. At the moment, even an increase in tourists can be seen as economic relief. Unfortunately, this is not the time to consider such measures.”

He added: “The impact of the tourist season is expected to be greater than last year’s, but again this is still not the time – at least not this year – to criticise this phenomenon.”

Homar pointed to divisions within the regional government, led by Marga Prohens, suggesting that proposed measures including tax increases and tighter regulation of rental vehicles were quietly dropped after opposition from Vox.

This has led to accusations of inconsistent governance, with Homar questioning whether the administration is balancing competing pressures by presenting different positions publicly and privately.

Despite this, he maintains that there is broad recognition across political actors that tourism must deliver tangible benefits for residents, particularly in terms of wages and living standards.