Background Tourism dominates the economy of the Lanzarote island but threatens its limited, unique and fragile territory. The main environmental and social problems caused by tourism are: - Growth of accommodation supply for the tourist and resident population. - Occupation, degradation and loss of soil. - Loss and abandonment of farming activity and the associated landscapes. - Higher social tension, xenophobic reactions and loss of traditions. - Large number of cars which place pressure on habitats and species. - Heavy water consumption (seawater desalination), energy and transport. - Occupation and pollution of the marine environment. - Heavy generation of waste and pollutants. The environmental, social and economic imbalances in Lanzarote were revealed in an earlier LIFE project "Strategy of Lanzarote in the Biosphere" (LIFE 97ENV/E/000286). The conclusions of the project raised a serious alarm which continue to have repercussions today. The project's beneficiary, "Cabildo de Lanzarote", will attempt to change the present trend by acting on the following fronts: - Legal restrictions on land use planning. - Budget restrictions on environmental needs. Objectives The main aim of the ECOTAX LANZAROTE project was to explore new lines of income such as an Ecotax to assist the intensification of the economic struggle to correct the environmental, territorial and social imbalances of the island. The objectives included: - To explore the viability and application of an Ecotax (environmental tax) model for the Lanzarote Island, which will facilitate a reorientation of the current model towards sustainable tourism. - To give the Island a new financial tool which, together with other territorial planning measures promoted by the Island and Regional Governments, will help to limit human pressure on the island, especially by tourists. These measures will prevent any further overflow of its carrying capacity, and will at the same time meet the strong demands of the island population. - To minimise the environmental impact in key sectors such as transport, waste, energy, etc. - To protect and restore the island's biodiversity, habitats, flora and fauna, as well as the zones and landscapes which reflect the unique man-nature interaction over the course of the history of Lanzarote. - To create an awareness-raising channel and test various formulae for commitments by tourism operators to the Island. - To test guarantees for social participation and control over the use of the tax revenue. Results The ECOTAX lANZAROTE project was partially successful in reaching its objectives. On the one hand, the first part of the project: to carry out viability studies, surveys and definition of an environmental tax model were a success (despite delays) and the objectives of these tasks were reached, namely: • To explore the viability and application of an Ecotax (environmental tax) model for Lanzarote Island, which will facilitate a reorientation of the current model towards sustainable tourism. • To give the Island a new financial tool which, together with other territorial planning measures promoted by the Island and Regional Governments, will help to limit human pressure on the island, especially by tourists. These measures will prevent any further overflow of its carrying capacity, while still attending the strong demands by the island population. On the other hand, the second part of the project (pilot experience activities) were assessed as a failure. With the activities carried out under these tasks, the beneficiary did not reach the following project objectives: • To minimise environmental impact in key sector such as transport, waste, energy, etc. • To protect and to restore the island biodiversity, habitats, flora and fauna, as well as the zones and landscapes which reflect the unique man-nature interaction over the course of the history of Lanzarote. Finally, the dissemination activities were partially successful. The campaign was less ambitious than originally foreseen and focused on the dissemination of books, the ecotax model, spots and videos for the local population aimed at environment protection in general; a website; an exhibition panel at the airport; and a final results exhibition (which was mainly visited by schools). Through these activities the beneficiary was been able to make the local population aware about the need to protect Lanzarote by applying new taxation measures. The results of the surveys carried out have showed that the island population is in favour of the sustainability of the island and the measures proposed. However, the campaign did not reach the tourist sector. The only activity which was directed at tourists was an information panel (on environmental protection rather than the ecotax implementation), set up at the airport during the last month of the project. The main outputs of the project are therefore the 12 studies and 2 surveys which analyse the potential Ecotax models in accordance with the legal, administrative, social and tourist conditions of the island. These studies point out that Lanzarote is moving towards an unsustainable development that could be slowed down with the application of an ecotax to control the tourist sector growth. 1. Evolution of insular indicators 2. Lanzarote’s social and tourism metabolism 3. Public savings produced by restraining the growth of tourist offer 4. Legal frame for growth restraint in tourist areas of Lanzarote 5. Limiting access to a second residence in Lanzarote. Legal report. 6. Taxation, environment and tourism on the island of Lanzarote 7. Legal regulation of rental car offer without driver in Lanzarote 8. Sustainable management of tourist flows in ports and airport on Lanzarote. Legal Report. 9. Eco-bylaws for water demand management in building. 10. Eco-bylaws for energy demand management in building. 11. Building materials and environment impact: analysis and proposals. 12. A strategic framework to strengthen the island’s economic system while checking the growth of tourism Therefore, the project reached the conclusion that an environmental tax is viable. However, its application was not envisaged for the near future because the Island government (the Cabildo, the beneficiary and only participant in the project) assumed that in view of the current situation in the tourist sector (a decrease in the influx of tourists and average expenditure), an ecotax would be counterproductuve and could divert the flux of tourists to other destinations. At the end of the project, no legislative or administrative procedures had begun to implement the ecotax.