FROM FISCAL OPPORTUNITY TO GOVERNANCE RISK: MAKING TOURISM ACCOMMODATION TAXES WORK FOR SUSTAINABILITY

This study examines the disconnect between sustainability rhetoric and fiscal practice in the Balearic Islands' tourism tax policy (Spain). Using a novel AI-assisted method, we analyse 297 tax-funded projects worth €845.8 million and 357 civil society proposals from 2016–2025. Findings reveal a shift from eco-social aims toward a green growth agenda, prioritising competitiveness over redistribution or ecological limits. Despite growing public demand for tourism degrowth and justice, governance structures marginalise civic influence. The study highlights how sustainability language is co-opted to legitimise expansion, raising concerns about greenwashing. We argue for redesigning tourism taxes with participatory governance, progressive criteria, and sufficiency-based goals. This approach can transform tourism fiscal tools into genuine levers for environmental justice and systemic transition.