Un esempio di applicazione teorica e pratica della politica

economica: il caso di “ecotassa” nelle Isole Baleari

Carles ManeraUniversitat de les Illes Balears

Session for the Master in Sociology and Social Research, Università di Firenze,

27th October 2015

THE ENVIRONMENTAL TAXATION SYSTEM

• 1. Concept of externalities (Marshall).• 2. Differentiation between Economics and

Chrematistics.• 3. Progress of environmental taxation since 1970:

Scandinavia and Holland. • 4. Basic idea: internalization of social and

environmental costs of economic growth. Responsibility ethics.

• 5. Taxes and duties: indispensable tools for the ecological reconstruction of the industrial society.

THE LOAD CAPACITY OF THE ECONOMY AND THE BALEARIC GROWTH MODEL

• 1. Thermodynamic vision of economic facts. • 2. The population as a contaminator: increase in seasonal population due

to tourist activity.• 3. GROWTH MODEL, 1960…: Increase in number of visitors, expansion of

tourist consumption, growth of the construction sector. • 4. Critical phases: new expansions of an extensive nature: more visitors,

more territorial consumption, lower economic profitability. Decreasing profitability of the model since 1985.

STYLIZED LINES OF THE BALEARIC GROWTH MODEL, 1960-2010

SECTORIAL EVOLUTION OF THE BALEARIC ECONOMY(Source: drawn up by myself using the data of the Fundación BBVA and the Institut Balear

d’Estadística)

THE LIFE CYCLE OF TOURISM IN THE BALEARIC ISLANDS

KEY INDICATORSSOURCE: Drawn up by myself using the data of the Direcció Provincial del Ministeri d’Indústria i Energia (Department of the

Ministry of Industry and Energy); GESA reports; the energy statistics gathered by the Conselleria de Comerç i Indústria (Regional Ministry for Commerce and Industry) and the work published by the Conselleria de Turisme (Regional Ministry for Tourism), El

turismo en las Baleares (1993).

NEED TO CORRECT THE MODEL: THE GDP OF THE BALEARIC ISLANDS IS

PLUNGING…

…AND OTHER CRUCIAL ECONOMIC INDICATORS ARE ACCOMPANYING IT…

Source: “Políticas de innovación y sus efectos en el cambio de modelo productivo: el caso de las Islas Baleares”. (‘Innovation policies and their effects on the change in the production model: the case of the Balearic Islands’.)

Carles Manera, CU. (Universitat de les Illes Balears) Ferran Navinés, Consell Econòmic i Social de les Illes Balears.

Pere Oliver, Instituto Español de Oceanografía. MICINN.Enric Tortosa, IMEDEA-CSIC-UIB

Javier Franconetti y Marta Bonnail. (Universitat de les Illes Balears)

…BUT THE ACCOMMODATION CAPACITY IS INCREASING…

…AND THE NUMBER OF OVERNIGHT STAYS IS ON THE RISE…

…AND THE AMOUNT EACH TOURIST SPENDS IS STAGNATING…

…WHILST THE CONSTRUCTION SECTOR IS SPEEDING UP

THE ENVIRONMENTAL IMPACT OF TOURISM…

…IS NO DIFFERENT FROM OTHER ECONOMIES

DO SOLUTIONS EXIST?

• 1. Change in model: greater diversification of the tertiary sector of the economy: towards quaternary and quinary activities.

• 2. Environmental taxation policies, for intervention purposes.

CONFLICT OF INTEREST BETWEEN CHANGE AND CONTINUANCE. A CERTAIN HYPOCRISY OF DISCOURSE: A DESIRE TO CHANGE, BUT IN ORDER THAT EVERYTHING STAYS THE WAY IT IS

GOVERNMENT 1999-2003: ENVIRONMENTAL TAXATION PROPOSAL

• 1. Idea of a tourist tax similar to that which exists elsewhere (reference: taxe de séjour, in France).

• 2. Head-on opposition by hoteliers and management associations, with campaigns in the press and the media.

• 3. Viewed favourably by tourists and the population of the Balearics.

Examples of press campaigns by management associationsSource: El Mundo El Dia de Baleares,19,21,23,25,27,29,31 July and 2 August 2002

But… what is, and what was, the so-called Ecotasa?

• The Government of the Balearic Islands (1999-2003), formed by a Progress Pact, created an ecological tourist tax on 23rd December 1999: the Fund for the Rehabilitation of Tourism Spaces.

• It levied between 0.25 Euros per person and day for rural tourism establishments and 2 Euros per person and day for luxury hotels. Tourists under the age of 12 and social tourism were exempt from the tax.

What was the fund used for?• 1. Modification of accesses to clear and eliminate traffic on beachfronts.• 2. Removal of urban land from tourist resorts.• 3. Sports and cultural installations.• 4. Treated water grid.• 5. Setting up pedestrian areas in tourist resorts.• 6. Demolition of obsolete buildings.• 7. Signposting for tourists.• 8. Conservation of natural parks.• 9. Restoration of natural heritage.• 10. Maintenance of local crafts and agricultural activities.• 11. Rehabilitation of monuments.• 12. Congress equipment.• 13. Conservation of archaeological sites.• 14. Creation of ethnographic diffusion centres.• 15. Creation of sales outlets for local products.

IS THE PREJUDICE TOWARDS THE ECO-TAX JUSTIFIED?

• 1. Messages: loss of tourists, decrease in competitiveness, economic collapse.

• 2. Correct economic analysis, without ideologizing: context vision. Economic crisis in of Germany, the effect of the 9/11 attacks, fear of flying.

• 3. Economic calculation: study of elasticity of tourist demand.

ESTIMATE OF TOURIST DEMAND(Aguiló-Riera-Roselló: “Un modelo dinámico para la demanda turística en las Islas Baleares. Una

evaluación del efecto precio del Impuesto Turístico”, work document no. 29, ISSN 1138-3259. Universitat de les Illes Balears)*

• Most usual method: multiple regression.• Income and price elasticity obtained for the

bulk of the tourism markets. • Diffusion method: implies the existence of a

process via which individuals access information on a tourist destination. Only then do they consider the possibility of travelling to it.

ELEMENTS TO BE CONSIDERED(Aguiló-Riera-Roselló: “Un modelo dinámico para la demanda turística en las Islas Baleares. Una

evaluación del efecto precio del Impuesto Turístico”, work document no. 29, ISSN 1138-3259. Universitat de les Illes Balears)

• 1. Number of tourists: most used variable in the majority of tourist demand studies.

• 2. Usual manner of reaching the Balearics: airport and sea (the latter more limited).

• 3. Tourist coming to the Balearics: buys a tourist package and is very seasonal.

• 4. No. of arrivals: good indicator.

ELASTICITY(Aguiló-Riera-Roselló: “Un modelo dinámico para la demanda turística en las Islas Baleares. Una

evaluación del efecto precio del Impuesto Turístico”, work document no. 29, ISSN 1138-3259. Universitat de les Illes Balears)

• British income elasticity: 1.6%;• German income elasticity: 0.5%;• Period analysed: 1970-2000.

The data prove that tourism is a basic necessity for Germans

THE CONSEQUENCES OF THE TAX• 1. Based on data from 1998:

– Tourist expense per person and day: 69 Euros– Average stay: 11.36 days– Example fee: 1 Euro per day– Increase of 1.44% in daily expense.2. Result: decrease in the arrival of British and German

tourists of around 71,000 passengers: 1.026% elasticity (0.48% German, 1.64% British).

3. Capacity for revenue collection: around 82 million Euros a year.

(Aguiló-Riera-Roselló: “Un modelo dinámico para la demanda turística en las Islas Baleares. Una evaluación del efecto precio del Impuesto Turístico”, work document no. 29, ISSN 1138-3259. Universitat de les Illes Balears)

CONCLUSIONS• 1. The Balearic eco-tax generated a significant flow of income

towards the region’s tax offices.• 2. The basic objective was to collect revenue, not dissuade

tourists, or the amounts would have been higher.• 3. The new Balearic government led by Jaume Matas revoked

the eco-tax in September of 2003, three months after taking office.

• 4. The Balearic eco-tax is a new example of the possibilities of taxation for environmental or palliative purposes of growth models and their externalities.

• 5. This kind of tool will have to be employed more and more by public authorities.