Opportunity to attract high-end tourists lost - Dalli

Nationalist MP John Dalli yesterday expressed disappointment over the way the Chambray project had evolved, saying the project was now focused on property development whereas the vision the government had 12 years ago was to develop this site into a high-end tourist destination.

The original project, he told parliament, was modelled on a public private partnership where the government provided the site and the private sector issued the capital. The ultimate aim was for the fort to become a high-end tourist destination with a mix of apartments and a hotel, and the government would have benefited from half of the profits over the years.

There had, however, been several developments, some unfortunate, others planned, which had sunk that project.

The project, he said, had died because the opposition poisoned it. There had also been problems involving the private developers and permit delays. Labour MP Leo Brincat, speaking on Thursday, had seemed to imply that there was something wrong in the fact that investor Roberto Memmo met him (Mr Dalli) when he came to Malta. He had also indicated that Dr Memmo had refused to back out of the project until Mr Dalli stepped down from the Cabinet.

Mr Dalli said he had been the minister responsible for the project on behalf of the government, so who did Mr Brincat expect Dr Memmo to meet when he came to Malta to discuss the project? What was wrong in this? There were no other interests.

And Mr Brincat in his speech had contradicted himself because he had also criticised Investments Minister Austin Gatt for having moved the new Chambray deal before the House now and not before the summer recess, which, Mr Dalli observed, would have been well before he stepped down.

Mr Dalli said that as minister, his advice to Mimcol, the government holding company had always been for it to take the project in its own hands.

But the opposition's attitude ever since the original project was conceived had led to a situation where Gozo lost a golden opportunity to attract the top quality tourists it needed. The government had tried hard to save the project but the opposition had poisoned it.

Mr Dalli spoke during the debate on a motion for the government to transfer Fort Chambray to Gozitan developer Michael Caruana after the previous agreement with developers headed by Roberto Memmo was terminated.

Gozo Minister Giovanna Debono, who spoke earlier, described the new contract as the best in the circumstances and would yield the government Lm3.7 million.

Getting here had been tough and various alternatives had been considered, but what was most important was that this project would get going and completed.

This was what all Gozitans wanted. Furthermore, everyone respected Gozitan developer Michael Caruana and his family for getting things done. Yet the opposition was speaking like this was another failure.

The contract conditions were such as to facilitate the completion of the project. She would like to see a hotel forming part of the project, but the developers were being given a year to decide whether this part of the project should go ahead, basing themselves of financial viability.

Evarist Bartolo, the opposition spokesman on tourism on Tuesday had given the impression that nothing was being done for tourism in Gozo. Yet plans included new facilities for divers, including a decompression chamber, a new archaeological museum and a new development plan. And it looked like it would not be long before the helicopter service was reintroduced.

Mrs Debono said the government and the opposition should pull the same role for the benefit of Gozo.

Nationalist MP Frederick Azzopardi said tourism was the biggest industry in Gozo and the development of Fort Chambray should help attract all-year tourism.

Mr Azzopardi recalled the history of the fort. He said an ideal partner had now been found for the development of this site and he was confident the project would yield economic spin-offs which the people of Gozo would benefit from.

Urban development minister Jesmond Mugliett said that in the recent past there had been several unsuccessful attempts by successive governments to develop Fort Chambray.

A Labour government in the 1980s had wanted to turn the fort into a touristic residential complex. As a result, the bastions were breached for a new access road and some buildings and a swimming pool were constructed.

Mr Mugliett said the 1993 contract had to be seen in context. Malta was then a sun and sea resort and there was a shortage of quality bed stock for tourists in Gozo. But the situation had since changed, which was why the contractor was not being obliged to build a hotel.

Property prices had changed too, which was why there was a higher premium.

The new contract was much tighter than that in 1993. The developer could not transfer his shares before the project was concluded and there were clear timeframes for the conclusion of the various parts of the project.

Mr Mugliett said that during the budget debate he was criticised that the Dock 1 brief was not commercial enough. Now the opposition's criticism was the exact opposite. But the government had clearly found the formula for this project to go ahead.

Competitiveness Minister Censu Galea underlined the government's priority to get the Chambray project moving. He said hotels in Gozo had only half the occupancy levels of hotels in Malta, which was why one could not oblige the developer to set up a hotel in Chambray.

The minister said one had to ensure that new developments fitted the areas they were going to be placed in. The developer who would take over the fort was well known in Gozo for his contribution to the Gozitan economy and he was expected to show certain sensitivity to the island while also making a profit.

Franco Galea (PN) said that when examining any deal on Chambray one should look at all the advantages that developing it would bring to Gozo, such as job creation.

In the 1990s there had been high expectations of developments in tourism that would have entailed the opening of some six additional hotels in Malta, but developments since had not warranted this. If a hotel was not eventually built at Chambray it should not be seen as the failure of the fort's development.