The town of Mogán in Gran Canaria has reinstated its controversial tourist tax, despite protests from hospitality providers who claimed it could damage the local tourism industry.

The Superior Court of Justice of the Canary Islands (TSJC) has lifted the suspension, meaning the tax is once again in effect for tourists visiting the island as of Thursday, March 27.

Mogán's tourist tax is €0.15 (approximately £0.13) per person, per day, intended to raise revenue for local services, infrastructure, and activities, and applies to anyone over 16 staying in hotels, holiday homes, or other tourist accommodations.

However, just a day after its introduction on March 11, the tax was suspended following a legal challenge from the Federation of Hospitality and Tourism Entrepreneurs (FEHT), which deemed the tax rules "confusing" and "poorly written", according to Canarian Weekly.

The FEHT presented arguments to Mogán Town Council, warning the tax could harm the tourist sector economically and create administrative difficulties. They also expressed concerns about potential refunds if the tax were reversed in the future, which would lead to further bureaucracy.

But the court dismissed the arguments from hospitality industry leaders, stating that systems are in place to manage taxation and refunds, and ruled that the tax is to remain in place for now. A final verdict on the matter is expected soon.

The mayor of Mogán, Onalia Bueno, praised the verdict, telling Canarian Weekly: "Despite opposition from the hotelier's association, the PSOE, and Nueva Canarias, Mogan continues to move forward."

Mayor Onalia also vouched for the simplicity of the tourist tax calculation and downplayed concerns regarding potential administrative challenges it could pose to businesses.

While tourist taxes have long been debated, more taxes are being introduced in light of growing over-tourism fears, meaning those visiting holiday hotspots in 2025 may need to pay more.

This year, Thailand is set to introduce a tourist tax, with air travellers facing a 300 baht (approximately £6.90) charge; yet, those arriving by sea would only pay half that amount.

Many Portuguese regions already implement visitor taxes, and some new ones are coming in for 2025. For example, the archipelago of the Azores introduced a €2 (circa £1.67) nightly charge per guest as of January.

The UK appears to be following in the same footsteps, with London Mayor Sadiq Khan considering plans for a tourist tax. Edinburgh's tourist tax will be implemented for any trips taking place from 24 July 2026, and those booked after 1 October 2025. The city will impose a 5% levy on accommodation costs, meaning those staying in pricier lodgings will pay more.

Meanwhile, in Manchester, tourists are charged a £1 levy per night in hotels, a measure that was introduced in 2023. Advocates of the scheme argue it helped the city generate £2.8m in its first year.