Zeal for increasing tourist taxes sends “wrong signal”, warns association leader
President of the Hotel Association of Portugal (AHP) has expressed concern today over the “trivialisation of tourist taxes“, saying they have not been sufficiently debated, neither their effects nor the destination given by local councils to their revenues.
This trivialisation (in which councils are constantly hiking amounts to be charged to visitors, even Portuguese citizens) “is the wrong signal,” said Bernardo Trindade, speaking at the end of the AHP lunch in Lisbon, which was attended by the Minister of the Economy, Pedro Reis.
According to Trindade (himself a former secretary of state for tourism), the increase in tourist taxes gives the wrong signal not simply to tourism, but the Portuguese economy as a whole.
“We are at a time when the wrong signals could be counterproductive for this economic activity,” he said, considering that tourism has been fundamental to the good performance of Portugal’s economy.
Speaking to Lusa on the sidelines of the event, Bernardo Trindade said that tourist activity has been stabilising but the zeal with which councils are seizing on tourist taxes to ostensibly pay for services to tourism – specifically the doubling of Lisbon’s tax (from €2 to €4 a night) – could be seen as “an attack on the development of tourism”.
As he explains, tourism is responsible for 20% of the wealth generated in the city of Lisbon and 25% of the employment. While the AHP has “a good relationship with Lisbon city council” there has been no opportunity for debate on this subject.
Since implementing a tourist tax (in 2016) “more than €200 million has been collected by the Lisbon city council”, he said.
When Lisbon’s tourist tax was increased to €2, the argument was to make transfers to parishes to mitigate the effects of tourism (in the case of urban hygiene) and to expand the congress centre. This did not happen, says Trindade – thus the justification to double the tax to keep up with demands of visitors to the city “is unsubstantiated”.
Regarding the impacts of tourism, Bernardo Trindade said AHP has never shied away from impacts, especially in Lisbon, but it is still impossible to understand an “increase of this magnitude” by the city council – without it being properly explained and without fully explaining where the money will be spent.
In August, according to a count carried out by Lusa agency (taking into account the charges in force this month), of the 278 local authorities on mainland Portugal, 24 already apply the tourist tax, several will start applying it this year – such as Loulé (November), Setúbal and Caminha (September) – and others plan to start next year.
Lisbon started charging the tourist tax in 2016, at €1 per night, and increased the amount to €2 in January 2019.
Since the beginning of September, the rate has been set at €4. Lisbon is the municipality with the highest contribution per overnight stay.
When Lisbon city council approved the proposal to increase the tourist tax on overnight stays to €4 per guest per night (including updating the tourist tax on arrivals by sea from €1 to €2 per passenger), a source from mayor Carlos Moedas’ office said that the money raised will contribute to improving the quality of life of Lisbon’s residents “as it is recognised that (tourist) activity, in addition to the undeniable positive effects it has on the city’s economy and employment, naturally has an impact on core activities such as urban hygiene, maintenance of public spaces, transport, among others”.
This Thursday, it was reported that the majority in Porto city council led by Rui Moreira will propose increasing the tourist tax from €2 to €3 per overnight stay in all the city’s parishes.
As Trindade has diplomatically pointed out, it is beginning to look like councils are taking the mickey… but even more importantly, tourists may start thinking so too. ND
Source material: LUSA
