Help for spain

In the annual state of the nation debate held last week, Spain's President announced a package of economic measures designed to boost the Spanish economy...

These included a very welcome helping hand for Spanish tourism and by extension, property investment in Spain. Under the new Government initiative, airport taxes will be zero per cent as from the third quarter of this year.

Airlines whose passenger figures this year equal or exceed last year's figures will be entitled to 100 per cent discount on airport taxes. To qualify for the zero tax, airlines will be required to present their passenger numbers as from July this year. Those airlines with higher or similar year-on-year passenger numbers during each quarter will receive a rebate on all airport taxes paid.

The measure applies to all Spanish mainland and island airports and is expected to boost the tourist industry considerably. Spain is one of the world's most visited countries, but like most top tourist destinations has seen a fall in its visitor figures since mid 2008.

Airline passenger numbers were down by 20.5 per cent in the first quarter of this year, although tourism has not been equally affected in all areas of Spain - for example, the Costa del Sol experienced record Easter figures in April.

Spanish airport taxes are among the highest in Europe (and the world) and not surprisingly, those in the tourist sector including tour operators and hoteliers have been calling for a substantial reduction for some time. The recent Government announcement has naturally been welcomed by all sectors of the tourist industry.

The main airlines serving Spain are expected to start offering discounts and special offers on flights straightaway and this is predicted to have an immediate effect on tourist figures.

"Zero airport tax is excellent news for the whole of Spain," says James Gonzalez, Market Analyst at Obelisk Investment Property, "but it's especially welcome for the tourist hot spots. Spain is the number one short-haul destination for holidays and at the moment when people are watching their budget, cheaper flights will be a major deciding factor on where they want to go."

James also points out the important knock-on effect this measure will have on Spanish property. "Now that some areas of Spain are showing real promise for lifestyle investment, zero airport taxes couldn't have come at a better time," he comments.

Source: www.obeliskinternational.com