As Edinburgh introduces a customer levy this week, we take a look at what a decade of vacationer tax-funded funding has finished for one in all Europe’s most notorious resorts
It’s a vibrant early summer time night in Mallorca and Jaime Mora Bosch is reclining in a waterfront restaurant in a cream swimsuit. Behind him, Port Adriano is stuffed with multimillion-euro yachts as their passengers settle into eating places overlooking the marina, the place rosé and mineral water are being poured.
Mora Bosch is director of tourism for Calvià, a district of mountain trails, luxurious resorts, unique harbours… and Magaluf, the resort with a fame because the place the place Britons go overseas to behave badly.
Low-cost lager, sunburn, public nudity, stag dos and hen events turned ‘Shagaluf’ right into a tabloid style of its personal. Mora Bosch insists that image is years outdated and argues that the vacationer tax launched a decade in the past has helped drive that change.
“For those who’re in Magaluf tonight, sure, you’ll discover some folks drunk, you’ll discover some British folks and not using a T-shirt, possibly swimming, possibly ingesting within the streets,” he says. “However typically it has nothing to do with the previous.”
From Port Adriano, Magaluf is just a brief drive away, however the distinction is speedy. On Punta Ballena, the road universally referred to as the strip, music kilos from open-fronted bars as scantily dressed ladies attempt to entice teams of males inside with guarantees of low-cost booze.
A bunch of males of their early 20s, right here for a stag weekend, supply grins and gestures once I ask why they selected Magaluf. A celebration of girls from Sunderland celebrating a good friend’s engagement give roughly the identical reply. What’s placing, although, is how dated the strip feels. There are many teams of younger adults, but in addition a shocking variety of 40- and 50-somethings who appear to be attempting to relive their youth, a lot of them accompanied by their bored-looking teenage youngsters.
A number of premises are boarded up, whereas others have the sticky, pale air of locations ready for one closing summer time. The soundtrack leans closely in the direction of ’90s dance anthems. At round midnight on Saturday, we stroll into Joker’s, a karaoke bar simply behind the primary strip, and discover ourselves its solely clients. Sam, an English DJ in his 60s, is ready beside a dancefloor on which no one is dancing. “I came visiting within the Nineteen Eighties and by no means left,” he says. “Why would I?”
A couple of households finally arrive with youngsters youthful than you’d look forward to finding in a bar at midnight, however the room stays pretty empty. The bigger golf equipment nonetheless pull crowds and the strip is actually bustling, however teams of revellers appear to be looking for ‘the place to be’ – a spot that maybe not exists.
On the waterfront promenade, only a block away from the strip, are well-presented accommodations, trendy seaside golf equipment and fine-dining eating places serving households, {couples} and older guests. The 2 variations of Magaluf stay shut sufficient to listen to one another, however they’re rising more and more distant.

The promenade in Magaluf was constructed utilizing vacationer tax funding. Picture: Calvia Tourism
The strip’s pale air displays altering tastes, however its decline can also be the results of a deliberate effort to diversify the tourism mannequin that created it.
That mannequin took form within the Nineteen Sixties, when Mallorca opened as much as mass journey and accommodations rose at extraordinary velocity. Dennis Saro, an area information, has watched Calvià wrestle with the results. “We made a variety of errors right now within the 60s,” he says. “We began constructing, constructing, constructing… and we didn’t take into consideration the long run. That is what we’re fixing now.”
By the Nineteen Nineties, Magaluf had a fame for reasonable booze, low-cost rooms and being a resort the place guidelines didn’t apply, the place nearly something went.
The second that pressured the authorities to confront its fame arrived in 2014, when a video confirmed a younger British lady performing intercourse acts on a number of males in a bar as a part of a drinks promotion. It travelled around the globe, turning into a brutal commercial for Magaluf’s tourism economic system. “It was a lawless metropolis,” says Mora Bosch, who says it was at that time that the authorities knew one thing needed to be finished.
Calvià restricted pub crawls, road ingesting and alcohol promotions. Outlets in designated ‘extra tourism’ areas had been banned from promoting alcohol between 9.30pm and 8am. Noise guidelines had been tightened and police inspections elevated, whereas many venues started opening earlier as daytime golf equipment.
The Balearic Sustainable Tourism Tax adopted in July 2016, charging guests in keeping with their lodging and the time of yr. By July 2025, near 300 initiatives price nearly €850m (£730m) had been being financed by way of the programme.

Newly developed accommodations have sprung up throughout Magaluf. Picture: Calvia Tourism
“The primary purpose of the tourism tax is to compensate for the impression generated by vacationer exercise,” says Miguel Rosselló Jiménez, tourism co-ordinator on the Balearic Islands’ ministry of tourism, tradition and sport. “It helps fund initiatives to enhance the vacation spot, making it extra sustainable in environmental, social and financial methods.”
The levy funded funding in public areas, water infrastructure and cultural initiatives. Alongside non-public funding, EU funding and political help, it grew to become a part of a wider effort to rebuild and rebrand the area.
Magaluf’s beachfront now has a vibrant promenade linking the accommodations, eating places and waterfront. There’s stage paving, planting, seating and room for buggies and wheelchairs. Native vegetation and reclaimed water cut back stress on native provides, whereas seaside showers use seawater. The €3m (£2.5m) second part, accomplished in Could 2026, was funded solely by way of the tourism tax.
The area feels secure, open and straightforward to make use of, extra in step with the waterfront at Port Adriano and different elements of the island. Almost each venue I cross is serving {couples} and households. There are teams of women and men, however most are restrained slightly than rowdy.

The official inauguration of Magaluf’s promenade in June 2026. Picture: Calvia Tourism
By 11pm, many of the bigger teams make their method in the direction of the strip as nearly all of the venues on the waterfront shut or put together to close. Workers know inspections will test whether or not alcohol service has stopped on time, whether or not music has crept above the permitted stage and whether or not clients are smoking the place they shouldn’t be.
For residents, higher paving and calmer evenings solely go to date if tourism nonetheless consumes the locations the place they dwell. Marta, a Calvià resident, helps the transfer away from sheer numbers, though she understands why some neighbours have misplaced endurance altogether.
“We would like extra high quality and fewer amount,” she says, including that many locals “simply need to have the ability to go to a seaside and discover a spot”.
The marketing campaign to diversify tourism has additionally concerned broadening the vary of accommodations on supply. BH Mallorca, as soon as one of many foremost engines of the resort’s 18-to-30 economic system, was purchased by the Mallorca-based Fergus group and its companions, with round €20m (£17m) dedicated to dividing the complicated into three accommodations geared toward households and higher-spending guests.

Nicky Seaside on Magaluf waterfront has changed many older bars. Picture: Calvia Tourism
“They used to concentrate on drunk-tourism – the 18-to-30 market,” says Mora Bosch. “They’d have 1,200 folks on this lodge, and also you may discover 3 or 4 folks in a room … However two years in the past Fergus purchased it, an area model who concentrate on household actions, and we’ve seen an enormous distinction. The change is every thing.”
Richie Prior arrived as a vacation rep in 1990 and is now managing director of Pirates Journey, one in all Magaluf’s longest-established points of interest. Writing just lately in regards to the modifications, he stated Mallorca had “modified dramatically” and added: “Personally, I believe it’s a optimistic transfer,” pointing to improved accommodations, eating places and a extra worldwide crowd.
The authorities argue that fewer guests spending extra can create better financial worth with much less stress on streets and emergency providers. “Fewer folks however their per head spend is much more,” says Mora Bosch.
That technique has been helped by broader modifications in habits. Youthful adults drink much less, the price of dwelling makes indiscriminate spending tougher, and lots of guests now need a greater room, a good meal and someplace engaging to share on social media. As Mora Bosch places it, folks more and more need to showcase, a shift mirrored within the designated ‘selfie route’ created alongside the promenade.
We simply need to have the ability to go to a seaside and discover a spot
That doesn’t imply Magaluf desires to cease younger folks from coming and letting off steam as that is nonetheless a serious a part of the native tourism economic system. Stag and hen events nonetheless arrive and the key golf equipment proceed to buzz, however it feels as if Punta Ballena’s heyday is behind it. Calvià council has purchased 11 out of date business premises within the space, utilizing a €6m tourism tax grant to accumulate, demolish and redevelop them. The scheme will take away unsafe buildings and return the land to public use, whereas the fading bars counsel the market could also be retreating.
Calvià can also be creating causes to go to that don’t rely upon nightlife. The council plans to revive the Sixteenth-century Torre de Torrenova and switch neighbouring buildings designed by native architect Josep Ferragut into a global artists’ residence. It’s one in all a number of bodily and cultural initiatives underneath method, together with the restoration of the Galatzó public property, the event of Puig de sa Morisca archaeological park, a collection of refuges for walkers, a film-location path, a €10,000 literary prize and Conecta Magaluf, which just lately introduced collectively 400 movie and tv professionals from 29 nations.
Almost 2,000 kilometres north, Edinburgh is starting an experiment of its personal. Since 24 July, the Scottish capital has charged guests 5% of the pre-VAT lodging value for the primary 5 nights, turning into the primary UK metropolis to introduce a compulsory city-wide customer levy.

The Sixteenth-century Torre de Torrenova will likely be was a global artists’ residence. Picture: Tom Pattinson
The levy is anticipated to lift as much as £50m a yr by 2028-29. Of the obtainable funds, 55% will go to metropolis operations and infrastructure, 35% to tradition, heritage and occasions, and 10% to vacation spot administration. The primary three-year programme is price greater than £90m, together with funding for Leith Theatre, public bathrooms, historic streets and an annual £5m housing and tourism mitigation fund.
An early session discovered that 85% of respondents strongly supported a levy, though the ultimate 5% charge proved extra divisive. Hospitality companies argue that Edinburgh is already costly and that guests might spend much less elsewhere.
Tony Lankester, chief govt of the Edinburgh Pageant Fringe Society, helps the precept whereas warning that the pageant must see a tangible return. “At its most simple stage, I believe the vacationer tax is an efficient factor as a result of for too lengthy the impression of vacationers… has been borne by the individuals who dwell right here,” he advised The Stage.
Magaluf’s challenges are very completely different from Edinburgh’s: guests come to the Scottish capital for its heritage and world-famous literary and humanities festivals, however in each locations the prices of mass tourism are sometimes left for residents to soak up. Calvià reveals {that a} vacationer tax, mixed with non-public funding, regulation and political will, may help rework a vacation spot. It didn’t save Magaluf by itself, however it has helped the resort construct a future through which it could not want saving.
Important picture: Calvià Tourism
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