Sustainable Tourism Law

THE TAXATION OF SUSTAINABLE TOURISM IN SPAIN 349 the reduced rate of 10% (Article 91, One 2. 6th LIVA). Royal Decree-Law 20/2012 subjected them to the general type, so they are once again in the reduced category, which has been praised by the affected sector, although other similar groups, such as cinema, have criticized not being included within the scope of the reform 30 . In spite of this, the Law of General State Budgets for 2018 already contemplates that the activities of the cinema are taxed at the rate of 10%. Amateur sporting events, exhibitions and trade fairs are taxed at a reduced rate of 10% (Article 91. One 2. 6.º LIVA). III. TAXES ON TOURIST STAYS, ALLEGED PERSUERS OF ECOTOURISTIC PURPOSES Tourism is one of the main sources of wealth of the countries in southern Europe, the product of a political concern that encouraged decades ago the corporate investment in hotel establishments. Today, the question focuses as much on maintaining or surpassing the number of visitors as on preventing that tourism, especially in the main destinations, does not cause irreversible damage to the natural and patrimonial environment, that is, it now seeks to guarantee its sustainability. With this assertion, can the economic activity linked to tourism accept a different taxation than the general one, mainly aimed at residents in the VAT? In other words, can tourism, essentially regarding stays in hotels, hostels, hostels or similar, be subject to special taxation? From an economic point of view, there are staunch defenders of tourist taxation, considering that tourist destinations do not have clear substitutes, pointing to low demand elasticity and changes in tourism uses that are scarcely relevant 31 . Others, state that tourism taxation has a prominent role influencing prices, and, therefore, by influencing demand, especially of holiday destinations, it can therefore be considered that a legal and economic study of tax figures should be conducted, noting how tax tourism, and situations of tax competition that in many cases generate a tax phenomenon linked to the taxation of the 30 Cinema is out of the VAT rebate, El País, April 1, 2017, https://elpais.com/cultura/2017/03/30/ actualidad/1490873233_393483.html. 31 GAGO, A.-LABANDEIRA, X.-RODRÍGUEZ, M.: “La imposición del turismo”, Las nuevas formas del turismo , Mediterráneo Económico, http://www.publicacionescajamar.es/pdf/publicaciones-periodicas/ mediterraneo- economico/5/5-57.pdf, p. 106. They point out that there are geographical or climatic characteristics, distances or quality, which make tourist demand not as elastic as it may seem, so they remove the relativity that a tourist tax distorts that demand.