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The Ayuntamiento of Mogán, in Gran Canaria, is proving that a well-designed tourist tax can generate big benefits. Since introducing a charge of just 15 cents per person per day for guests staying in local accommodation, the town has raised €662,425 in barely six months and twelve days.

 

Though initially met with resistance and legal challenges from some business sectors, the tax has surpassed expectations. If this pace continues, annual revenue could reach €1.4 million, based on an 80% average occupancy rate. This figure could be even higher when including taxes still to be collected from some establishments.

 

Mayor Onalia Bueno highlighted that the success of this initiative has inspired the Ayuntamiento to propose similar taxes across the Canary Islands, which welcome 18 million tourists yearly. The goal is clear: use these funds to improve services and infrastructure in tourist areas, addressing the needs residents voice amid high visitor numbers. Bueno said, “Tourists are happy to pay because they want to contribute to protecting the environment,” and confirmed the tax has not deterred tourists from visiting.

 

Mogán’s move follows similar strategies adopted in Catalunya and the Balearic Islands, where tourism levies support ecological and heritage conservation programmes. Barcelona has collected over €100 million, while the Balearics gather more than €80 million annually for sustainability efforts.

 

While there is potential to raise the tax further, any decision will await the outcome of current court cases. Bueno emphasised that "any adjustment must be fair and proportionate, avoiding putting too much burden on visitors. It’s not about increasing taxes, but balancing the costs tourism generates for local services."

 

Thanks to Mogán's example, the Canary Islands could soon harness tourism tax revenue to fund essential projects without relying solely on state aid, boosting environmental and infrastructure improvements that benefit both locals and visitors alike.

 

 

Image: Olaf Mühlenbrock/Pixabay