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The purpose of the essay is to identify the potential impacts of the Balearic Island's in 'abolishing' the eco-tax and recommend alternative strategies to compensate for its effects.

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Introduction

The purpose of the essay is to identify the potential impacts of the Balearic Island's in 'abolishing' the eco-tax and recommend alternative strategies to compensate for its effects. In order to achieve this, it is necessary to shed some light on both positive and negative impacts concerning the tourists, host community, hoteliers and the environment. Reasons for eliminating the eco-tax will be highlighted, whilst also concerning its consequent effects on the Balearic Islands. It is fundamental to understand the term 'eco' which is basically, concerns of the environment. One way it can be described is through eco-tourism, which according to Honey & Stewart (2002) is: "...responsible travel to natural areas, which conserves the environment and improves the welfare of local people" This suggests that tourists should be aware of the environment and its residents in order to minimise the negative effects their tourism can have on a community. Honey (2002) believes that tourism can create negative ecological externalities in the form of environmental damage. The tourism industry is suggested to damage the natural resources that form the basis for eco-tourism. Eco-tourism can therefore enhance the opportunities for better management of natural resources whilst providing a satisfying experience for the visitor. ...read more.

Middle

If such a high percentage of tourists were willing to pay why would the government still decide to abolish the tax? The Express on Sunday (2003) suggested that although the revenue obtained from the eco-tax could help protect the environment, it showed that visitor figures in 2002 were down by 900,000, creating a deficit of more than 800 million. Only 28 hotels out of the 100 were now staying open during the winter season. Spain's Balearic Islands have been internationally famous for having experienced rapid tourism development but were now suffering following the introduction of the eco-tax. "The islands depend on tourism for 84% of the Gross Domestic Product" (http://www.tourismconcern.org.uk. This indicates that the Balearic Islands have been heavily reliant upon tourism. Jaimw Puig suggested having an eco-tax gave an impression that the islands are in undesirable conditions. (http://www.ft.com) "The regional government gave the impression that the Islands were in a bad state of repair, that it is a terrible image to send abroad" This suggested that by having the eco-tax The Balearic Islands were portraying a bad image for the resorts by suggesting they needed money to improve their environment. ...read more.

Conclusion

In conclusion, in order for the Balearic Islands to remain in the competitive market of tourism certain changes need to be addressed. Abolishing the eco-tax means that the alternative strategies put in place need to be carefully planned to ensure they are customer friendly, cost effective and not economically damaging. Clearly the eco-tax was introduced to provide financial support for the damage caused through tourism. Yet it failed to predict the decline of visitors, which in the long term would have a more adverse effect on its economy, yet a promising effect on its environment. Due to the fact the Balearic Islands relied heavily on its tourism income it would be seen as a positive measure to abolish the eco-tax. However this meant other solutions would be required to conserve the environment. As suggested airline taxes, user charge and carrying capacity are just some of the strategies suggested to alleviate the problems. As these have just been newly developed it will still require time and research to see their success in relation to the Balearic Islands. Therefore whilst these measures have been recommended as solutions to the abolishment of the eco-tax one will have to wait and see its success. Eco-taxes and Tourism 1 Managing Tourism Activity ...read more.

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