Fresh fears have been sparked in the Balearic Islands over a potential price hike to the tax currently levied on holidaymakers. Next week, the Sustainability Pact committee created to combat and deal with the various problems mass tourism poses to the Balearics is set to debate the proposal agreed between the regional government and the Socialist Party of the Balearic Islands (PSIB) to increase the cost of the sustainable tourism tax (ITS). 

“I can confirm that this measure will be debated next week and the PSIB has been invited to defend its proposal,” the Minister of Economy, Finance and Innovation, Antoni Costa, said during a parliamentary session on Tuesday (February 3). The proposal generally seeks to increase the ITS during the peak summer months – when visitor numbers regularly exceed two million per month – while reducing it during the low season and eliminating it for residents of the archipelago. 

Since 2016, visitors to Majorca, Ibiza, Menorca and Formentera have been charged to offset the environmental impact of tourism and fund conservation projects across the islands. However, the rate depends on both the type of accommodation and the time of year. It is charged per person, per night, and a 10% VAT is typically added. During the high season, from May 1 to October 31, luxury hotels charge €4 (£3.75) per night and four-star hotels charge €3 (£2.59), down to €1 (£0.86) for hostels and campsites. Cruise ship tourists, meanwhile, are charged €2 (£1.72). 

During the winter months, the tax is significantly reduced – usually by 75%. For example, a four-star hotel stay drops to roughly €0.75 (£0.65) per night. The government offers a few “breaks” to make longer stays or family trips more affordable, including the long-stay discount, in which if you stay in the same accommodation for more than eight nights, the tax is reduced by 50% starting from the ninth day. The tax is also not levied on children under 16. 

Last month, any chance of an increase in the tourist tax in 2026 appeared unlikely, as the Partido Popular (PP) government downplayed the possibility of a rise in a bid to keep the Vox party onside for the remaining tenure of the current administration, set to end in May 2027. However, on Tuesday, the PSIB MP, Llorenç Pou, criticised Mr Costa for not bringing the proposal to the Sustainability Pact committee before the end of last year, as the government had promised, the Majorca Daily Bulletin reported.

In 2024, Balearic President Marga Prohens presented a case for an increase in the tax, with summer increases designed to deter overcrowding and encourage off-season travel in winter.

Increasing this tax, the CCOO argued, would first and foremost be “a deterrent, so that the Balearic Islands send a clear message to the world that there is no room for more people here during the high season”. Even if the increased fee does not stop people from booking trips, the union said the extra money could go toward improving workplace conditions and housing on the islands.