Posted on November 8, 2025
UK travelers planning a trip to the Balearic Islands may soon find their holidays more expensive due to proposed changes to the local tourism tax. The tax, designed to help regulate overtourism and generate revenue for local initiatives, is likely to make popular destinations such as Mallorca, Ibiza, Minorca and Formentera more expensive, especially during the peak summer season.
How does the current tax for tourists work?
Currently, the Balearic Islands impose a tourist tax that varies depending on the type of accommodation and the season. Visitors staying in five-star hotels are charged €4 per person per night during high season, with budget accommodation options such as hostels at €1. This system encourages tourism throughout the year, with significant discounts of up to 75% during off-peak times. This pricing model makes the Balearic Islands an attractive option for both off-season tourists looking for affordable holidays and summer visitors willing to pay more for a premium experience.
Tax increase proposal: a big change
However, under the new proposals, the tourism tax could see a sharp increase, especially during the high summer months of July and August. The proposed hike would raise the tax to €15 per person per night during peak season. For example, a family of four staying in a luxury hotel for two weeks would face a huge rise in their holiday costs – an extra €616 on top of the current tax of €224, taking the total to €840.
This change may make the Balearic Islands less attractive to many British tourists, who make up a large proportion of visitors to the island. With such a large increase in taxes, tourists may choose other Mediterranean destinations that remain more affordable, especially during peak times.
How will tourists in the UK be affected?
The UK is the main source of international tourists to Spain, with millions of Britons visiting every year. In fact, around 27% of all British visitors to Spain – nearly 5 million people – head to the Balearic Islands. Therefore any increase in tourism tax could have far-reaching effects on the local economy, as British tourists are a vital part of the tourism sector.
While higher taxes may reduce the islands’ appeal for some travellers, it’s not just the increased financial burden that will impact visitor numbers. British holidaymakers are increasingly looking for destinations that offer value for money, and the proposed tax increase may prompt many to consider alternatives, such as Greece, Turkey or even lesser-known destinations within Spain that offer similar experiences at a lower cost.
Addressing excessive tourism and its effects on local life
The Balearic Islands have long struggled with the issue of overtourism, which has led to many challenges for local communities. The rapid influx of visitors has placed enormous pressure on infrastructure, public services and the availability of housing. Property prices have soared as more and more homes are converted into short-term rental properties, leaving local residents struggling to find affordable long-term housing.
By raising the tourism tax, the local government aims to reduce the sheer volume of visitors, especially during the summer months. The move also aims to fund sustainability efforts that can help mitigate the negative impacts of tourism on the islands’ environment and communities. In theory, higher taxes would encourage a more sustainable form of tourism, shifting the focus from quantity to quality.
Additional revenues will be reinvested in local infrastructure, environmental protection, and preservation of the islands’ cultural heritage. It is hoped that these measures will not only reduce overtourism, but also ensure that future generations can continue to enjoy the beauty of the islands and their resources.
Tourism industry concerns
While environmentalists and local authorities support the proposal as a necessary step towards tackling overtourism, there are concerns within the tourism sector about the potential impact on the local economy. Tourism is a major economic driver for the Balearic Islands, and any decline in visitors could have serious financial consequences for local businesses, especially those operating in the hospitality and services sectors.
A decrease in the number of tourists could lead to fewer bookings for hotels, restaurants and tourist attractions, directly affecting jobs and income levels in these sectors. Small businesses that rely on large numbers of visitors, such as retail stores, cafes and local tours, could be particularly hard hit. Furthermore, with many European and Mediterranean destinations offering more affordable options, the Balearic Islands may lose out if higher taxes make the islands too expensive for regular visitors.
Find the right balance
The debate over raising the tourism tax in the Balearic Islands highlights the ongoing struggle to balance the needs of the tourism industry with the well-being of local residents. Although overtourism has undoubtedly created challenges, including high housing costs and environmental degradation, it has also been a major economic contributor to the region.
The proposed increase in the tourism tax is an attempt to address these issues while ensuring that the islands remain an attractive destination for future generations of tourists. However, it remains to be seen whether this measure will have the desired effect without significantly harming the tourism industry.
Ultimately, finding a balance between managing tourism numbers and maintaining the island’s economic vitality will require careful consideration from both government and industry stakeholders. Sustainable tourism practices, such as promoting off-peak travel and encouraging eco-friendly tourism, may hold the key to the long-term success of the Balearic Islands as a top destination while preserving its unique environment and culture.
