Loulé Council, run by Vítor Aleixo of the Socialist Party, faces opposition to the his decision to go along with the 'Tourist Tax' proposal agreed by the region’s mayors at their last AMAL meeting.
The Social Democratic Party opposition in Loulé says that "the Council has more than €70 million in the bank, hence has funds to meet all the needs of the county," i.e. there is no need to rake in more money through a Tourist Tax.
“Tourism in the Loulé municipality has already slowed down this year, due in part to the recovery of competing destinations in the Mediterranean area that have lowered prices to gain market share," – a scenario that the application of the Tourist Tax would aggravate, according to the PSD.
The UK Ireland are two of the major markets in the region, and with the devaluation of the pound by more than 15% relative to the euro, holidays for those from these countries, "are already much more expensive," so it does not make sense to make the Algarve more expensive, says the PSD-Loulé, presumably referring to Northern Ireland.
The PSD Loulé said it wants to hold a public debate, "to inform local citizens and to present a proposal to reject this Tourist Tax."
The Tourist Tax proposal was voted in at the September AMAL meeting with only Silves Mayor, Rosa Palma, voting against the measure that she said "will create inequality and will be counterproductive."
Subsequent to the AMAL meeting, each Council Assembly must vote on the measure - with Lagoa Council already looking unlikely to push ahead with the tax and now, with Loulé’s political opposition mobilising, other Councils recognising the groundswell of opposition from hoteliers, Alojamento Local operators and restaurateurs who depend on free-spending tourists for their livelihoods.
