EU's fiscal and environmental measures will hit Spain hard

The US-based consulting firm Deloitte stated that the financial and environmental measures that will affect the aviation sector envisaged in the European Union (EU) and Spain could lead to the loss of 11 million tourists in Spain in 2030.

Deloitte presented the report "Flying towards a sustainable future" at the headquarters of the Spanish Confederation of Business Organizations (CEOE) in Madrid. The report claimed that the "Fit for 55" package adopted by the EU, which envisages the adaptation of climate, energy, transport and taxation policies within the scope of the European Green Deal to the target of reducing the emission rate by 55 percent, will have negative effects. It was emphasized that the cost of implementing the "Fit for 55" program imposes the obligation to use sustainable aviation fuel (SAF), which is three to six times more expensive than conventional fuel, and as a result, air ticket prices will increase.

TOURIST NUMBERS COULD DROP BY 11 MILLION

It has been claimed that the fiscal and environmental measures to be taken will lead to a decrease in the number of foreign tourists in Spain by 11 million in 2030, a loss of 12 billion euros in foreign currency income (of which 3 billion 200 thousand euros will cover the hotel sector) and the loss of 430 thousand jobs in the sector. It was noted that financial measures for the aviation sector would result in a 9 percent loss in Gross Domestic Product (GDP) and 236 thousand job losses in 2030, while environmental measures could result in a loss of 7 percent of GDP and 194 thousand jobs. Javier Gandara, President of the Association of Airline Companies in Spain (ALA), criticized the financial measures, although he emphasized their commitment to reaching the zero emission target in 2050. Gandara argued that the solution lies in "investing in technologies that effectively contribute to reducing emissions and, until that happens, supporting the development of SAF fuels". Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!