At the time of closing this edition, the entire golf sector was deeply concerned, uneasy and upset about the brutal VAT hike. Going from a reduced rate of 8 percent to a general rate of 21 percent, thirteen points more all of a sudden, would leave this tourist segment, which is making real efforts to survive in the midst of a generalized crisis that is affecting it heavily, very much affected. In recent years, despite ‘restructurings’ and ‘resizing’, golf courses have struggled to survive. Key markets have collapsed, in the case of Andalusia, such as the English, Irish, etc., and other emerging markets have not yet recovered.
IAGTO, the world’s largest association of golf tour operators, sent a very worrying letter to the golf federations of the Spanish tourist areas. They said that if VAT goes from 8 to 21 percent, our destination will suffer a major setback. It would have the opposite effect of what is intended, which is to increase revenue: it would undoubtedly fall considerably because income would be drastically reduced, and other golf destinations would be strengthened, perhaps forever.
Nobody understands that, suddenly, without anesthesia, VAT is raised thirteen points and that golf courses are not considered infrastructures of tourist interest, but mere sports entities. Let’s understand once and for all, gentlemen of the Treasury: golf is an inseparable part of the tourist offer in most of Spain, both on the coasts and in the interior. For this reason, and there could be a glimmer of hope to undo the mess, the Minister of Tourism himself, José Manuel Soria, the Ministry of Tourism of the Andalusian Regional Government, the provincial tourism boards and other institutions consider that golf courses should be treated as tourist entities and a reduced VAT should be applied to them, as always. If this is not achieved, it would be a catastrophe for the sector and tourism in general.
Hopefully someone will finally see the light and come to their senses.
By the way, this magazine has become the only one in Spain to receive the distinction of Accredited Publication by IAGTO, the main association of golf tour operators. It is an honor for us and at the same time an incentive that stimulates us to continue working hard in these difficult times that we are living in the media.
Leave a Reply