The sustainable tourism tax was introduced in the summer of 2016, and so the allocation of revenue to projects to be funded by the tax started in 2017. The government at the time of the tax's introduction was the PSOE-led coalition with Més, the party who had insisted on the tax. Podemos entered this coalition in 2019.
It remained in power until 2023, by which time the tax had raised a total of 698 million euros. Of this total, 218 million euros relating to the years 2020 to 2022 were used to cover needs arising from the pandemic. Of the remaining 480 million euros, only 59 million euros had been spent on fully implemented projects - a touch over 12%.
Some of the projects from that period are still under way but are progressing slowly. Many are not moving forward at all, as is made clear in a devastating report issued by the Public Audit Office. It has attacked the "chaos and lack of control" in the management of the tax up to 2023, which is why there has been such a low level of project execution.
Difficulties the Audit Office has encountered in preparing this report have led it to not even issue an audit report. It cannot endorse tax data and cannot guarantee that the law has been complied with or will be complied with throughout the entire processes pertaining to the various projects.
Findings were submitted to the Balearic Parliament on Thursday. The Audit Office points to a lack of management and states that many projects that were given approval were worthless because they had not been fully developed. An example is given of the building of a sports centre. The budget was allocated but without there having been land for the construction or a technical project to support the construction. It has remained shelved for years.
The Audit Office notes problems in virtually all the files it has examined. Some of the projects do not comply with the tax requirements, while others do not take account of costs that will be incurred once projects are completed - if they are completed. Many of these files lack supporting documentation either for work carried out or payments made.
The AETIB tourism strategy agency was handed the responsibility for managing the tourist tax. The Audit Office argues that the government should take direct control of this management or provide the agency with adequate human and technical resources so it can carry out this work properly. It also wants audit reports on the implementation of the tax to be prepared, as is required under the sustainable tourism tax law.