.... and Spain is in debt ?

[Oldtimer1]

Spanish return is for every 60 cent it spends and given Spanish VAT is 8% then even if tourist only spends €10 on a meal the state is ahead.

Spanish VAT is 18% so that tourist would only have to spend €3.35 to recover the amount paid to the airline.

Thats what a drink in a bar (Not even mentioning the alcohol duty). Spain would even earn money on someone buying a McDs. Money well spent I think.

[racedo]

Old Timer

Correct but there are different VAT rates and 8% is the food one, 18% is prob alcohol one but not an expert in Spanish VAT.

[djfwells]

I'm by no means knowledgeable on these matters, but it makes mem wonder why the region of Catalonia has spent 80 million euros over the last 5 years on budget airline subsidies (and have committed to paying Ryanair alone 40 mln over the next 5 years). All an effort to get Tourists to come to the region. AND THEN they introduce a "Tourist Tax" to save money ? - Why subsidise one party, but penalise the other ? why not just reduce or abolish the subsidy to save money that way ?
Catalan tourist tax delayed

[Sunnyjohn]

It may be to do with where the money comes from. Despite its desperation to become a country (it is an autonomous community), Cataluna receives specific grants from central government as well as from the EU. The issue of where the money has come from is therefore likely to be fairly complex.