Plans to hike an unpopular tourist tax on Spanish islands during the peak summer season may be abandoned in a win for holidaymakers. The minority centre-right Balearic Government is in talks with the far-right Vox party about potentially removing the increase in the Sustainable Tourism Tax (STT). Instead, they want to adopt more popular policies, such as banning tourist accommodation in multi-family buildings.

While no agreement has been reached yet, local reports indicate that the tax issue has faced Opposition within the regional Government, as per the Majorca Daily Bulletin. The STT is a tax imposed on holiday vehicles and overnight stays in tourist accommodations to finance environmental conservation and sustainable tourism projects.

The Balearic Islands government recently suggested raising the tax by 66% to 200% during the busy summer period.

The lower accommodation rate will jump from €1 to €2.50 per night. The higher rate will increase from €4 to €6 per night, and the tax for cruise ship passengers will rise from €2 to €6 per night.

Penalties for illegal tourist accommodation could also significantly increase, potentially reaching up to €500,000.

Proposals were also made to raise the tax on holiday vehicles based on emissions and duration of stay on the islands. The tax could hit €85, but reports suggest that the change will not impact rental companies based in the Balearic Islands.

The tax generates funds that support off-season research, training, and job creation initiatives. Additionally, a portion of the proceeds is earmarked for social housing projects.

However, there’s a growing push within local government circles to scrap the hikes introduced by the decree aimed at regulating tourism.

Despite this, Jaume Bauza, the Regional Minister of Tourism, Culture and Sport, stood firm on raising the Sustainable Tourism Tax (STT) just yesterday.

He maintained this stance even though he acknowledged that the tax "does not regulate tourist flows except in the case of cruise ships".