To come into effect in October

Future abolition of the ecotax provokes variety of reactions

Content. TUI President (right) approves the decision

Welcomed by the tour operators as a means of improving the Islands´ image, GOB fears that future funding for environmental projects will fall to the public

Christine Watterson.Maó

As expected, the Balearic Government approved a bill last Friday to abolish the ecotax, stating that the tax was inadequate given the increased number of tourists opting for self-catering holidays compared to those choosing to stay in hotels. The bill now has to pass through all the relevant proceedings before it becomes law in October; until that time hotels will still be obliged to collect the tax from their guests.

The Government has stated that it will honour the contributions provided for in the Environmental Investment Fund, in the case of those projects already under way which are to be financed by the ecotax, but those for which no budget has yet been allocated will be rejected if they do not meet the new guidelines on tourism.

Once the tax on tourists has been abolished the Government envisages that the Environmental Investment Fund will be financed by contributions from both the public and private sectors to pay for improvements to tourist resorts and for the conservation of the environment. Details of this will be worked out over the next few months.

Reactions

Michael Frenzel, the President of the major European tour operator, TUI, which brings more than three million tourists to the Balearics each year, expressed his pleasure at the news of the ecotax´s abolition, whilst hoping that the Government would not neglect to invest in measures which would guarantee the protection of the environment.

VITURME, the association for managers of tourist holiday homes has also welcomed the news that the tax is to be rescinded, having expressed its opposition to the ecotax from the outset and believing that the announcement will improve the image of the Balearics as a tourist destination.

However, the ecological group GOB believes that the action will result in the Balearic citizens and businesses ultimately paying for the projects which were to have been financed by the ecotax. The ecologists believe that, with the withdrawal of the tax, the means and opportunity of ensuring that tourists pay for environmental projects will have been lost.