Sustainable Tourism Fund

The Promotion of Sustainable Tourism Fund (Inversions Turisme Sostenible) of the Balearic Islands is financed through the Sustainable Tourism Tax paid by visitors staying in tourist accommodation. The fund reinvests tourism revenues into projects that improve environmental sustainability, climate resilience, and the quality of life of local communities. 

The fund invested €5.16 million in the construction of a 35-unit public housing development in La Soledat, Palma, delivered by Institut Balear de l’Habitatge (IBAVI). The project demonstrates how tourism revenues can support sustainable housing by financing the use of local and eco-friendly materials, including biomass-fired ceramic products and insulation made from recycled fibres, alongside bioclimatic design strategies. The investment promotes low-carbon construction, reduces energy demand, and supports local construction value chains and traditional craftsmanship.

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