The Hotel Association says the increase in the tourist tax could jeopardize Mobile.

BarcelonaA new warning from the Barcelona Hotel Association regarding the possible increase in the city's tourist tax, which could reach 15 euros per day by 2029. "Tourism cannot be fiscally stifled," lamented the president of the Barcelona hotel association, Jordi Clos, at a press conference this Wednesday.

International instability resulting from the trade war and the war in Ukraine, along with the economic problems of some major powers and source markets, such as Germany, have slowed the sector this year. From January to August, Barcelona hotels recorded occupancy rates 1.5% lower than the previous year, but with an increase in the average price per room from 190 to 194 euros.

And compared to July and August, the trend has been the opposite: occupancy has rebounded by one percentage point (above 86.5%), but prices have fallen, especially in luxury hotels. "For five-star hotels, the average price per room has dropped by €20, and for four-star hotels, the loss is €7 in July," Clos explained.

Is the Mobile in danger?

"Recently, the tax burden on tourism has been a negative factor because it makes the use of the city increasingly more expensive," said Clos, who warned that the planned increase in tourist taxes will not be "such a crushing" burden on tourists who come for two days.

"At the Mobile World Congress (MWC), 110,000 people sell tickets. If you apply such significant increases, this could mean that this congress will have an increase in cost of 400,000 to 600,000 euros," he warned. Clos also said that if the cost increases this much, the congress organizers may reconsider whether it is better to hold it in Barcelona or not.

The president of the Hotel Association refers to the planned increases in tourist taxes in Catalonia and Barcelona. On the one hand, Barcelona City Council approved an increase in the municipal tax in July—which would increase by one euro per year until reaching 8 euros in 2029—and, on the other, the tax on stays in tourist establishments (IEET), which applies to the Generalitat (Catalan government), is set at around 2 euros for Barcelona (for hostels and hotels under 4 stars). Thus, in just over three years, a tourist could end up paying 15 euros per night, adding the two taxes together.

Social impact

In response to the discontent of a portion of the population with the tourism sector and the impact it has on their daily lives, Clos argued that tourism is leaving behind the type of visitor who creates problems for coexistence, but that it is a slow process. "We are now on this path, supported by the efforts of seeking business tourism. The price situation in the city of Barcelona also plays a role. There has been a considerable increase; the bachelor parties that were held there will possibly move to another city that maintains the same prices," Clos added.

Asked about the demands of workers in the sector, who this August They demonstrated in Plaza Catalunya To demand an agreement with employers to address the loss of purchasing power and precarious working conditions, the general director of the Hotel Association, Manel Casals, said he was surprised by the demonstration. "We saw it as a promotional event for someone in particular. We are very concerned about absenteeism in our sector, which in some places has doubled or tripled," he added.