The possibility of Madrid adopting a contentious tourist tax is currently under discussion, with Reyes Maroto, former tourism minister, running for mayor of the city.
Introducing a tourist tax would make Madrid the latest addition to a growing roster of European cities, countries, and regions that are seeking to augment tourism revenue by imposing an additional fee on visitor stays. This list already includes Manchester, Edinburgh, Frankfurt, Greece, Amsterdam, and Catalonia.
Madrid is a popular destination for millions of visitors annually. However, Maroto’s proposal has sparked debate and opposition from hoteliers, who are already displeased with the idea of such a tax.
Tourist taxes have already been implemented in various parts of Spain, such as Barcelona and the highly sought-after Balearic Islands, requiring holidaymakers to pay up to €4 per night. The rationale behind this added charge is to generate more funds for the regions, with the intention of reinvesting in tourism. However, hoteliers are against the tax, asserting that it may dissuade tourists who are mindful of their expenses.
In 2015 and 2018, Madrid contemplated introducing a similar tax, but it was never enacted.
During a recent tourism conference in Madrid, Reyes Maroto, former Minister of Industry, Commerce and Tourism, remarked “The tourist tax does not have to be merely a tax, it has to be a tax that reverts to the tourism industry.” Hosteltur.com, a major tourism news outlet, reported on her statement.
The Madrid Hotel Business Association quickly voiced its disapproval of the proposal, arguing that it would negatively impact both the hotel sector and tourists. “Madrid is booming and becoming one of the most desired destinations for national and international tourists with a large hotel investment, without the need for a tourist tax,” said its president, Gabriel Garcia Alonso.
