The Municipality’s hoteliers have continuously raised concerns about the lack of transparency regarding the distribution of these funds.
On April 30, the Municipality of Albufeira released a regulation for implementing a Tourist Tax. Guests over 13 years old, whether nationals or foreigners, will now be subject to the €2 tax when staying overnight in a hotel, amusement park, camping site, or local accommodation within the Municipality for up to 7 days between April and October. Commencing on May 21, the establishments will have to transfer the funds acquired from this tax to the Municipality.
At the public hearing, the Associação da Hotelaria de Portugal (AHP) clarified that they are against the proposal to levy another tax. The reason for this was a lack of clarity on how the funds would be spent and the hotel industry’s lack of involvement in monitoring the distribution of these funds. It also sparked practical inquiries into the process of charging guests during check-in and the lack of consideration for deals finalized with operators prior to including this extra cost for guests.
Disappointingly, Albufeira’s City Council disregarded all the observations. The regulation was put into effect but failed to resolve these matters.
In the meantime, the City Council held information sessions for hotels and other affected businesses to go over the procedures for collecting and distributing fees. Both the scheme’s design and its handling of hoteliers’ questions were deemed thoroughly unprepared.
During a meeting held at the City Council on May 14, the AHP underscored the necessity for more transparency in the rate allocation process and for hoteliers to be actively involved in the management model, specifically within an investment committee. It also highlighted the importance of streamlining the billing process and honouring existing accommodation agreements.
In this context, the AHP was informed by the Câmara that the payment system, designed for guests to pay upon check-in at a TPA located at the hotel reception, will align with the procedures followed in all other municipalities: payment upon invoicing by the hotels and then submitted to the Municipality. It also guaranteed that any bookings made before the implementation of this regulation on May 21 will not be charged the fee.
There is still uncertainty surrounding how hotels are reimbursed for the expenses involved in collecting and transmitting taxes to the Municipality. Moreover, the question remains as to which governance framework will encourage hotels to actively participate and incorporate their tax contributions into initiatives that genuinely benefit the city and tourism sector.
Once more, the AHP provided constructive feedback on the system and suggested concrete ways to enhance the destination to benefit tourists and businesses.
