COMMUNITY PROSPERITY
FUNDING A GREENER FUTURE ONE TRIP AT A TIME
BALEARIC ISLANDS, SPAIN
Tourists can strain a destination’s economy, environment and culture in ways that often outweigh what they spend. Popular Spanish islands have a plan to offset these costs and protect what makes them special for visitors.
What's
changing
Tourism metrics often emphasize the economic benefits of visitors, but more destinations are recognizing the hidden costs that can outweigh those gains and are taking steps to tackle them.
What's already
possible
The Balearic Islands of Spain have implemented a sustainable tourism tax to offset the negative impacts of the nearly 13 million visitors who flock to the region every year. This purpose-based tax is applied to stays across a range of accommodation types.
Seizing
the opportunity
Unlike general taxation, where revenue goes into a broader governmental budget, purpose-based taxes fund particular projects or objectives. In the Balearic Islands, the sustainable tourism tax rate changes depending on the accommodation type and season, ranging from €1 to €4 per day in the high season to €0.25 to €1 per day during the low season. The tax feeds the Promotion of Sustainable Tourism Fund that is allocated across seven strategic areas: environment, sustainable tourism, cultural heritage, training and employment, scientific research, social housing and sustainable mobility.
Standout
tactic
The tax program insists on robust selection criteria and transparency in the process for allocating funds to sustainability projects.
How
it helps
To date, the tourism tax has raised €262 million and funded 167 projects across the islands. €110 million has been spent on environmental projects, €44 million on sustainable tourism initiatives, €8 million on preservation and maintenance of cultural heritage, €28 million on scientific research, €21 million on optimizing training and employment in tourism and €52 million on improving social housing.
Diving
deeper
Could the sustainable tourism tax in the Balearic Islands allow tourists and the industry to feel they are contributing to sustainability without addressing the larger issue of mass tourism?
Increasing
impact
Tax rates could be structured to incentivize longer stays that reduce a visitor’s greenhouse gas footprint. Additional research could determine if the current tax rate adequately covers visitors’ full impact on the islands.
Traveling
better
Travel is inherently carbon intensive. Whether you are taking a mini-break or an annual vacation, consider ways to minimize your impact by staying longer in one place, reconsidering how you travel to the destination, and supporting businesses that are working to make their community and the world a better place.
