The Funchal Commercial and Industrial Association (ACIF-CCIM) has asked Funchal City Council to withdraw its proposal to double the tourist tax from 2 to 4 euros per overnight stay. The association argues that the council has not shown why the increase is necessary. Its position was submitted during the public consultation on the municipal regulation.
According to the council's own calculations, 2.48 euros of the proposed 4 euros is intended to discourage tourist demand. ACIF cites figures from the Madeira Regional Statistics Directorate showing overnight stays in Funchal rose just 0.2% in the second quarter, while room occupancy across the Region fell by 4.2 percentage points.
The association also wants the council to publish detailed annual information on revenue, funded projects and outcomes, and proposes a consultative council with public and private representatives to oversee the tax.