A controversial new tourist tax introduced by one of Gran Canaria’s biggest tourist areas has been blocked by the Canarian High Court hours after it entered into force.
The municipality of Mogán in the south of the island includes several popular resorts and beaches such as Puerto Rico and hit the headlines when the local authorities approved a mandatory tax of 0.15 euros per person per night’s stay in hotels, apartments and Airbnbs in the area (a total of almost 30,000 rooms). The tax is to be collected by the accommodation owners or operators and lodged with the council every six months.
The levy is designed, among other things, to raise revenue to help the council pay for improvements to local infrastructure, the extra services generated by the massive presence of tourists, and – in general – enhance the sustainability of the tourism sector in Mogán.
The tax was approved despite opposition from a number of bodies, including the Las Palmas Hotel Federation (FEHT), whose objections were dismissed by the council. However, the Federation has taken its case to the High Court, which granted an injunction to halt the tax just one day after its introduction.
The FEHT alleges that the tax will have a very damaging effect on business given that competitor destinations, including neighbouring resorts in Gran Canaria, have not adopted the measure. It also stressed that the administrative burden and formal obligations placed on accommodation establishments was disproportionate.
On receipt of the news of the immediate suspension of the tax, a Mogán spokesperson said the council was expecting the ruling and would appear before the court, as ordered, to respond to all the arguments raised by the hotel federation and seek to have the injunction lifted.
Photo: www.grancanaria.com/turismo
