Golf tax to affect tourism in Spain

LAST UPDATED: 25 Aug, 2012 @ 08:08
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Golf tax to affect tourism in Spain

SPAIN’S imminent IVA (VAT) hike will be ‘catastrophic’ for Andalucia’s golf courses, the Junta has warned.

New rates, set to come in on September 1, will equate to an eye-watering rise from 8% to 21% for the golf industry.

This is because golf courses, which previously benefitted from a reduced tax rate thanks to their connection to tourism, have now been reclassified as ‘sports’ venues.

Now Andalucia tourism boss Rafael Rodriguez has written an urgent letter of complaint to the Spanish government asking them to think again.

He argues that while golf is obviously a sport, it is also closely linked to tourism.

He claims that the new tax rise will affect golfers coming to the region on holiday.

Andalucia receives tens of thousands of golfers from the UK and other northern European countries each year, boosting the tourist industry and bringing jobs and investment.

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  1. Unless tourists are paying the tax directly the only way this is going to impact tourism is if the golf venues raise prices or lower the quality of service to make up for the difference.

    Any increase in tax will of course cut into their profits, but golf courses have minimal overhead while simultaneously being luxury services. If the golf venues pass the cost on to the tourist rather than eating the tax loss themselves they are the ones responsible for driving tourists away.

    Smells like golf venue owners using using their connections to play the “it will hurt tourism!” card.

  2. It’s an easy tax rise to avoid, I for one will take my money to Portugal from now on. How much longer can the Spanish Tourist industry survive when the Government keep bringing in policies that encourage tourists to go elsewhere? What a shame.

  3. Typical lazy Spanish government. Don’t create jobs (which requires political savvy and above all work) but just tax the people. Easy way out for now. But disastrous results over time. But then it is somebody else’s problem.

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