Tourism is practically the only economic driver in Spain that hasn't suffered from the crisis. This year's season is predicted to improve upon last year, but business owners in the industry are quite worried about the consequences of a very likely hike in the VAT.
A plan to pump 275 million euros into employment spending has been received with reservations, becuase people fear that the impact of these funds will be washed out by the VAT increase. The question is whether the government might find a way to not raise the VAT or allow an exemption for the sector.
The dilemma is complicated and should be resolved after carefully considering all the possible consequences in order to avoid, as much as possible, slowing down economic activity in Spain.
