Algarve councils to launch regional Tourist Tax

Paul Rees 10 March 2018

AMAL, the Algarve’s mayors’ group, unanimously* has approved the introduction of a tourist tax for those staying in the region’s hotels and guest houses.

All council areas are to be involved charge in the new scheme and each will retain the money raised in their council areas, which will be used, “in favour of the development of the Algarve municipalities.”

The decision was made at the last AMAL meeting with the nightly charge and launch date soon to be defined, but the necessary regulations are planned to be agreed, as soon as possible.”

The same fee will be implemented across the region and will have to be validated at the region’s municipal assemblies and will go to local public consultation.

Jorge Botelho, president of AMAL, understands that "it is premature to move forward with an exact launch date but it is a reality and a novelty, the Algarve will have a tourist tax."

The revenue will be managed by each of the 16 municipalities, "it will certainly be to the benefit of the region and the development of the Algarve council areas,” claimed Botelho who wittered on about “culture, combating seasonality and promoting the quality of the Algarve," while failing to mention the cost implications and the impact on bookings.

Lisbon already has a tourist tax, Oporto too, as from March 1st.

The Algarve’s cost-sensitive hoteliers have yet to make a statement through their trade body but, as they will be collecting the tax, the response will not be positive.

* A claim later denied by Silves council

Comments

+1 #10 TomT 2018-03-13 08:55

Quoting Luis Loureiro:

This tax is about 1-3€ a day, hardly worth mentioning. But for the municipalities it can make a big difference because they have to invest in infrastructure for tourists.

If this tax is €2 a day, a party of 4 adults on a two week break will be sending the council €80 for it to spend on things that the tourist board does anyway. This equates to 2 days work for someone on the UK minimum wage.

+1 #9 Plain Speaking 2018-03-13 07:45

Quoting Richard 2:

Tourist taxes are common across Europe and many locations globally. If potential visitors to the Algarve have to think twice because of a small tourist tax, perhaps those are precisely the tourists that we should discourage.
The potential misuse of collected funds is a different issue that must be solved by diligent voters and a more effective judiciary.

All taxes start off small but have an unfortunate tendency to rapidly rise from then on. Does the Algarve really want to further tax the only industry it has? And will the additional revenue be spent to improve the lives of the Algarveans or spent on more megalomaniac projects thought up by the elites for the sole benefit of the elites? A tourist tax for the already overpopulated large urban cities is sensible but for a region like the Algarve, totally dependent on tourism, it is potential suicide.

-1 #8 Luis Loureiro 2018-03-13 07:34

This tax is about 1-3€ a day, hardly worth mentioning. But for the municipalities it can make a big difference because they have to invest in infrastructure for tourists.

+2 #7 AL 2018-03-11 12:45

[quote name="mj1"]is that in addition to the 23 IVA on food...

Only if you eat crappy food, all essential food products are at a reduced IVA of 6%.

-2 #6 RG 2018-03-11 09:20

Am not opposed to a small tourist tax ‘per visit’ but per day? When we come over and stay for a month in a hotel I think I am putting enough into the economy with hotel charges and restuarant bills etc etc.

+1 #5 Plain Speaking 2018-03-11 08:38

Once again the State mantra comes to the fore. 'If something is successful and profitable then tax it into oblivion'. Complete and utter morons.

+5 #4 Richard 2 2018-03-11 08:03

Tourist taxes are common across Europe and many locations globally. If potential visitors to the Algarve have to think twice because of a small tourist tax, perhaps those are precisely the tourists that we should discourage.
The potential misuse of collected funds is a different issue that must be solved by diligent voters and a more effective judiciary.

+4 #3 robert1 2018-03-10 18:05

For those homeowners involved in short term holiday letting on a legal basis (Alojamento Local) this is another cost burden they just do not need versus the 70% illegal dwellings they compete with. The Algarve will lose tourist over this, if not in the short run when demand is high, then in the medium to long run as there are viable alternatives at a lower cost. The extra work this requires to pay the taxes will also likely be passed on to homeowners by their property management companies. I can understand the reasons why local councils are eager to increase income, as in the new budget they have again received little from the government for long overdue improvements to infrastructure. But this is not the way forward. The Algarve has been used as a cash cow for a long time, with little in return. Portugal is already in the top 4 of countries in Europe with the highest taxes on property. Just another policy mistake to be added to the long list…. :sad:

+5 #2 mj1 2018-03-10 15:03

is that in addition to the 23 IVA on food petrol car hire, airport tax, tolls and so on and so on

and I wonder what nice little waste of money projects will they think of to spend it on

+4 #1 Margaridaana 2018-03-10 14:20

I doubt that the revenue from the tourist tax will benefit the region or development of the Algarve (if that is really needed) it will more likely end up in the pockets of some council members or their ilk. Killing the golden goose again.

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