Edinburgh has recently begun implementing a visitor levy, similar to the tourist tax introduced a decade ago in one of Europe’s infamous resorts, Mallorca. This measure has significantly transformed the Mallorcan tourism landscape.
On a sunny summer evening in Mallorca, Jaime Mora Bosch, the tourism director for Calvià, observes the scene from a waterfront restaurant. Behind him, Port Adriano is bustling with multimillion-euro yachts and upscale restaurants. Calvià district is a blend of mountain trails, luxurious resorts, exclusive harbours, and Magaluf, a resort notorious for attracting wild British tourists.
Mora Bosch emphasizes that the image of Magaluf, often associated with cheap lager, sunburn and public nudity, has evolved over the years. He attributes this shift to the implementation of a tourist tax, which has helped drive this change.
Mora Bosch acknowledges that there are still some instances of unruly behaviour in Magaluf, but insists that things have improved significantly from the past. The area now presents a stark contrast to Port Adriano, with music blaring from bars and cheap alcohol offerings attracting groups of men. Although the notorious strip still attracts young tourists, the vibe has significantly changed, with numerous groups of older adults also frequenting the area.
Many old premises are now closed, waiting for one last summer, while newer establishments like Joker’s, a karaoke bar, struggle to attract customers. Yet, despite the fading allure of nightclubs, there is a rise in well-presented hotels, stylish beach clubs, and fine-dining restaurants frequented by families, couples, and older visitors.
The decline in the popularity of the strip is not merely due to evolving tastes, but also a directed effort to diversify the tourism model. In the 1960s, Mallorca had opened up to mass travel and hotels sprung up at an extraordinary pace. By the 1990s, Magaluf became a resort where rules did not apply and almost anything was permissible.
The authorities were forced to reconsider their tourism strategy in 2014, following a scandalous viral video showing a young British woman participating in explicit acts as part of a bar promotion. Mora Bosch notes that this incident prompted the authorities to introduce regulations to control the situation.
Calvià imposed restrictions on pub crawls, street drinking, and alcohol promotions, and introduced stricter noise rules and increased police inspections. The Balearic Sustainable Tourism Tax, introduced in July 2016, provided funds for close to 300 projects, contributing immensely to the transformation of the region.
Miguel Rosselló Jiménez, tourism co-ordinator at the Balearic Islands’ ministry of tourism, culture and sport, describes this levy as a tool to compensate the impact generated by tourist activity. The tax has financed investment in public spaces, water infrastructure, and cultural projects, contributing to a larger endeavour to rebuild and rebrand the region.
Today, Magaluf’s beachfront features a vibrant promenade linking hotels, restaurants, and the waterfront. It is accessible for all visitors, including those with buggies and wheelchairs, with native plants and reclaimed water easing the pressure on local supplies. This redevelopment was largely funded through the tourism tax.
The transformation, also involving the diversification of hotels, has resulted in a shift in target market from young, rowdy tourists to families and higher-spending visitors. The former hotspot of the resort’s 18-to-30 economy, BH Mallorca, was bought by the Mallorca-based Fergus group and partners, who committed around €20m to transforming the complex into three family-friendly hotels.
While the authorities have succeeded in attracting a more diverse and more affluent crowd, they are not aiming to deter young people completely. The nightlife scene remains a significant part of the local tourism economy, and stag and hen parties are still welcomed. However, the heyday of Punta Ballena appears to be behind it, with the council acquiring obsolete commercial premises for demolition and redevelopment.
Additionally, Calvià is also developing attractions that do not rely on nightlife. Plans are underway to restore the 16th-century Torre de Torrenova and create an international artists’ residence in the region.
Like Calvià, the Scottish capital Edinburgh has introduced a visitor levy, charging visitors 5% of the pre-VAT accommodation cost for the first five nights. The levy, which is expected to raise up to £50m a year by 2028-29, will fund city operations, infrastructure, culture, heritage, and events.
Just as Calvià used the tourist tax to transform its tourism landscape, Edinburgh’s visitor levy may help the city manage the costs and impacts of mass tourism. The lessons from Magaluf could provide valuable insights for Edinburgh as it begins its own experiment with the visitor levy.
