The ‘will it, won’t it?’ pendulum of the controversial tourist tax brought in by one of the Canary Islands’ most important holiday destinations has swung back in favour of the local council following the latest court decision.
As widely reported here in recent weeks, Mogán council in Gran Canaria passed a bylaw to collect a tax of 0.15 euros per night for every person staying in hotels and apartments in its jurisdiction, which includes resorts such as Puerto Rico.
The move was initially blocked hours after it came into force when influential hospitality association FEHT appealed against the council’s decision and took out an injunction on the grounds that the tax – the first of its kind in the Canaries – would damage the local holiday industry and imposed disproportionate administrative obligations on accommodation providers, including the gathering of very detailed information on guests.
In the latest development, the Canarian High Court for administrative disputes has reversed its injunction decision after receiving a lengthy list of arguments from Mogán justifying the legality of the tax. The court also ruled that – contrary to FEHT claims – the harm the tax would cause was “purely financial and not irreparable” even if the measure were to be scrapped in a definitive judgement, which could take some time to be issued.
As a result of the lifting of the injunction, Mogán’s 35 hotels, 67 apartment complexes and almost 3000 holiday homes (a total of just under 30,000 beds) must now levy the 0.15 euros charge on guests for every night of their stay and lodge the money with the council every six months.
Mogán mayor Onalia Bueno was delighted at the 27-page interim ruling which, she says, vindicates the corporation’s decision to introduce the tourist tax to raise revenue to pay for the extra services and amenities required by the municipality’s high numbers of tourists. Bueno also urged the FEHT and other opponents of the tax to “bury the hatchet” and work together for a more sustainable form of tourism in Mogán.
The precedent set by Mogán may well spur other parts of the Canaries with major tourist resorts to consider introducing similar initiatives, although none so far has openly come out in favour of a tourist tax until the waters are fully tested elsewhere.
Photo: Gran Canaria.com
