For many travelers, a cruise as a vacation experience remains unknown and unloved. A holiday at sea has long had the image of being too expensive and therefore elitist. A prejudice that has been partly created by mainstream media, which constantly feature the most expensive cruise lines without mentioning more budget-friendly alternatives. The cruise lines themselves are also fond of showcasing their best and most expensive suites.
However, the sector has seen enormous growth in recent years. The advantage of discovering multiple destinations during a trip without having to unpack your suitcase every time, the extensive child-friendly facilities, and the convenience of having great meals every day increasingly appeals to travelers. Moreover, they are noticing that the price-quality ratio is often better than with land-based holidays. However, the rising prices of airline tickets put pressure on this ratio.
For those who prefer to seek the sun in the Mediterranean, a holiday at sea is set to become slightly more expensive soon. The Balearic government, led by President Marga Prohens, has proposed plans to drastically increase the so-called ‘Sustainable Tourism Tax’ for visitors. During the high season (June, July, and August), the current tax for cruise passengers on popular islands like Mallorca and Ibiza will rise from €2 per person to €6 per day. Outside the high season, between March and December, passengers will still pay €2, with only January and February – the low season on the islands – being tax-free.
With over 1.8 million expected passengers in 2025, this tax increase will bring millions in revenue to the islands. According to the regional government, the tax hike is necessary to reduce the ecological footprint of tourism, with the funds being used for sustainability projects, infrastructure improvements, and the protection of cultural heritage.
Increase in visitors and regulations
The significant increase in the number of cruise ships and passengers in the 2024 cruise season in the Balearics – Mallorca, Menorca, Ibiza, Formentera, and the smaller islands Cabrera, Espalmador, Aire, and Dragonera – is the basis for the new regulations. Throughout the year, the Mediterranean archipelago saw nearly 1,500 cruise calls and 1.7 million guests, a 20 percent increase compared to 2023. As a result, environmental activists and other interest groups are urging the government to limit the number of cruise ships allowed to dock in places like Palma de Mallorca and to ban mega-cruise ships. In May 2024, the mayor of Palma de Mallorca supported the call for a partial ban on cruise ships. His plan is to limit the number of ships that may dock or only allow ships whose home port is the capital of Mallorca.
According to a 2021 agreement, Palma only allows three ships to dock within a 24-hour period. Ibiza allows only two ships. Since banning cruise ships is a larger challenge for local governments, increasing taxes on passengers has become a growing trend.
On the Greek Islands, authorities facing similar challenges as the Balearics have introduced a €20 surcharge for guests arriving by cruise ship during the high season of 2025 in places like Santorini and Mykonos. Smaller, less-visited islands will charge a €5 surcharge.
In Venice, the tourist tax implemented last summer for day visits during the high season was so successful in generating funds that the UNESCO World Heritage site plans to raise it from €5 to €10 in 2025. The tax was implemented on 29 of the busiest days of the island, raising €2.4 million.