The Las Palmas Federation of Hospitality and Tourism Businesses Defends Legal Certainty and Tax Fairness Following the Annulment of the Tourist Tax.
The Las Palmas Federation of Hospitality and Tourism Businesses (FEHT) has expressed its satisfaction with the ruling that annuls the overnight tourist tax approved by the Mogán City Council. This decision supports the legal and substantive arguments maintained by the business association since the beginning of the proceedings.
This court decision is also good news for the sector and for the Canary Islands population in general, who were also negatively impacted by the increased costs resulting from this tax when enjoying hotels and other accommodation establishments in the archipelago.
The FEHT emphasizes that its appeal was never intended as an institutional confrontation, but rather as a response to the need to defend legal certainty and fairness in the tax burden borne by the sector.
The Federation understood from the outset that the measure created by the council could not be considered a fee in the legal sense, but rather acted materially as a tax, since it levied a charge on the mere overnight stay in tourist establishments without any specific public service being provided to justify the charge.
However, the creation of new taxes falls under the purview of the legislature (national or regional) and cannot be assumed by local administrations. The FEHT also points out that the tourism sector is already the main contributor to the maintenance of public services in the Canary Islands.
Through the economic activity it generates and, in particular, through the collection of the IGIC (Canary Islands General Indirect Tax), tourism contributes a very significant portion (around 40%) of the public revenue that subsequently funds the Autonomous Community, the island councils, and the municipalities each year.
Specifically, accommodation in tourist establishments is already subject to a 7% IGIC, a tax paid by tourists visiting the Islands as well as by Canary Island residents themselves.
Therefore, the Federation maintains that it is inappropriate to establish mechanisms that impose double taxation on an economic activity that already bears a tax burden and that, moreover, generates tens of thousands of direct and indirect jobs and constitutes the main support of the Canary Islands’ economy.
The specific overnight stay tax was a clear example of double taxation on the same item, to the detriment of the sector’s competitiveness and also of Canary Islanders themselves who wish to stay in the Islands’ establishments, insofar as they also had to pay the tax now annulled by the High Court of Justice.
The tourism employers’ association reiterates its full willingness to collaborate with all public administrations to continue improving the quality of tourist destinations, strengthen their sustainability, and guarantee public services commensurate with the importance of tourism for the Canary Islands.
For example, the FEHT (Federation of Hospitality and Tourism Businesses) has already expressed its support for implementing fees for visiting the islands’ natural areas, a measure justified by the provision of specific services during these visits and aimed at raising the necessary funds for their proper conservation and management.
For tourism businesses, these shared objectives must be achieved while respecting the current legal framework and through ongoing dialogue between institutions and the business sector.













