The chairman of the executive committee of the Algarve Tourism Region (RTA) regrets the announcement of the introduction of a tourist tax in the Algarve today made public by the Intermunicipal Community of the Algarve (AMAL), disagreeing "with its chosen application, timing and model".
This position taken by João Fernandes is signed by the presidents of the Association of Hotels and Touristic Enterprises of the Algarve (AHETA) and of the Association of Hotel and Similar Industries of the Algarve (AIHSA), the two most representative associations of accommodation in the region.
«This is a wrong decision, which comes in counter-cycle with tourist demand and which can generate a loss of competitiveness for the Algarve destination. The tourist tax does not meet the reality of competition, as only the Balearic Islands, Catalonia and Tunisia have applied this tax, and this announcement comes at a time when there is a strong recovery of competing destinations in the Algarve, such as Greece, Turkey, Tunisia and Egypt, the last three of which are not subject to the rules of European competition and have very aggressive prices», stresses João Fernandes.
«In addition to this, we are in the final stretch of Brexit, a process that has already brought down the purchasing power of the British due to the devaluation of the pound against the euro and that affects the main source market for tourists to the Algarve, which no one anticipates yet. outcome», underlines João Fernandes.
On the other hand, he adds, «at this moment the Algarve, as a tourist destination, is still adjusting to the reality created by the bankruptcy of airlines such as Monarch, Air Berlin and Niki Airlines, which ensured the connection of the region to their main external outbound markets, the United Kingdom and Germany».
The president of RTA also says that "a fundamental issue to be taken into account is that a tax is a tax that is the consideration of public services or benefits in favor of those who pay it."
Therefore, «it is strange not to define, at the outset, where the tourist tax will be applied in the Algarve, and that it has not been ensured by this means a contribution to the tourist promotion of the Algarve destination, thus trying to mitigate a possible loss of competitiveness".
“Equally strange is not having defined the beginning of the application of the tax simultaneously in all the municipalities, which could generate inequalities within the region and weaken the destiny as a whole”, also emphasizes João Fernandes.
Finally, stresses the head of Algarve tourism, «the tourist tax does not meet the difference between the reality of a city-destination, such as Lisbon and Porto, with short stays of one or two individuals, compared to the Algarve, a family destination and with long stays, for which the application of a fee with these characteristics is more penalizing”.
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