The Federation of Hotel Businesses of Ibiza and Formentera has voiced alarm over a European Commission recommendation to raise VAT for the hospitality sector. They argue such a move could undermine the destination's tourism appeal, already grappling with rising energy and operating costs amidst fierce Mediterranean competition. The organisation warns that businesses may not fully pass on the higher taxes to visitors, potentially shrinking profit margins and stifling investments in quality and sustainability improvements. This development comes as the region strives to enhance its offerings, aiming for a more sustainable and high-value tourist experience.
