Tax Break for Hotels?

Monday, November 5, 2018
By Martin Myall

BZDIR Hotel VictoriaThe All Saints, bank-holiday weekend saw the hotels on Costa Tropical crammed with guests but that won’t stop many closing during the winter.

Hotels such as the Playacalida in Almuñécar and Tryp in La Herradura normally close down for the winter, as may others, leaving the 7,000 beds available on the Costa Tropical some 2,000 fewer.

Most of the coastal hotels in the province are in Almuñécar so  the Chairman of the Asociación de Hoteleros, Jesús Megías, is looking for financial help from the Town Hall to change that situation there.

The association wants a 50% reduction in local taxes (IBI) in exchange for hotels staying open all year round.

A 4-star establishment pays on average 100,000 euros in IBI each year, so if the Town Hall were to agree, then such a hotel would save 50,000 euros. This money, says the chairman, would not be used so much on running costs, but used instead on promotional campaigns instead, in order to attract off-season guests.

The hotels that do stay open all year round mainly depend upon foreign tourists (Scandinavians mainly) via tour operators and the government-subsidised holidays for Spanish pensioners (Imserso).

Señor Megías considers that if the hotels go well, then this is also good for the rest of the service sector.

As it is, when a new hotel opens they receive financial incentives from town halls in the form of tax breaks, in some cases 100% of their IBI contribution during the first years, but the hotelier association considers that this kind of incentive should be extended to all hotels, even if they have been open for years

Previously the Chairman of the Asociación de Chiringuitos, Francisco Trujillo, had requested that the ‘beach seasons’ be extended; i.e., the beach facilities that are only available during the high season be made available all year round.

Editorial comment: Señor Megías also called for the Town Hall to crack down on the flat-rental black market, so that this sub-sector were also controlled and paid its taxes, which is ironic considering that he is asking for hotels to be let off paying most of theirs.

(News: Costa Tropical, Granada, Andalucia)

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