ASCAV supports a Tourist Tax to alleviate the ‘Tourism Problem’

The Canary Islands Vacation Rental Association (ASCAV) has come out in favour of implementing an Ecotax in the Canary Islands. This fee would apply to "all tourist accommodation establishments located in the Canary Islands," and the revenue would be "entirely allocated to the promotion of public housing for Canary Island families," as explained yesterday by the president of the organisation, Doris Borrego.

This stance comes amidst ongoing debate and controversy over the regional decree to regulate holiday rental properties (VV) and ahead of the April 20th protest against the current mass tourism model.

According to Borrego, ASCAV's decision stems from a survey conducted among its members, aiming to "provide answers to Canary Island families who are suffering from rising housing prices in the Islands." Facilitating their access is essential in such a small territory that has long been experiencing the consequences of tourism.

Borrego said that "81% of surveyed members expressed support for an Ecotax for all tourist establishments (including hotels) in the Islands, not just those associated with holiday homes." The ecotax proposal "ensures assistance for those who need it most," albeit "as long as the revenue is earmarked for promoting public housing for Canary Island residents and facilitating access to housing."

"The owners of holiday homes in the Islands also live here, not on Mars. Everyone who disrupts the market and receives exorbitant amounts for their rentals should pay a fee," she agrees. Additionally, Borrego highlights that ASCAV "is committed to ensuring that tourism directly and tangibly benefits the entire Canary Island society."

HOW MUCH WOULD THE TAX GENERATE?

According to initial calculations by the Association, "the Canary Islands could collect up to 48 million euros annually through an Ecotax set at 50 cents per tourist per day staying in a tourist establishment in the Archipelago," Borrego said.

The survey also inquired about the methodology of the Ecotax project and the price establishments should pay. The entity highlights that "the Canary Islands are the only region in Spain where holiday housing is subject to the payment of IGIC (Canary Islands equivalent to VAT)," something negotiated with the Government of the Canary Islands, that contributes around 140 million euros annually to public coffers.