A Labour government would 'renew' tourism

A new Labour government would renew tourism by reducing the tax burden on the industry and subsidising the helicopter service, the Labour Party's tourism spokesman, Evarist Bartolo, said yesterday.

Addressing a news conference on the Labour Party's 'Renewal Plan for Tourism in Malta and Gozo', Mr Bartolo said that tourism taxes in Malta were the highest among the country's competitors. These are the two main proposals of the plan being moved at the party's annual general conference, which is to take place on Thursday, Friday and Sunday.

Mr Bartolo added that the helicopter service was being used by only a quarter of the previous number of users because it was unaffordable. In fact it was cheaper to go from the UK to Spain, or from Malta to the UK, than from Malta to Gozo, he continued, stating that a Labour government would reintroduce the subsidy on the service in a bid to revive tourism in Gozo.

Labour leader Alfred Sant agreed that there were ways and means how the subsidy could be introduced and be in line with EU regulations. He said all the other countries had subsidised links with their islands.

Dr Sant said the Labour Party had the best credentials to show the country the way forward in the tourism sector. He added that Bugibba, where the news conference was held, was a living example of the importance the Labour Party gave the tourism sector in the country's economic development.

In the last two years of Nationalist administration the number of tourists had gone down by 120,000 and income from tourism has dropped by Lm14 million compared to the two years of a Labour Government from 1996.

Then the Labour government appointed a minister responsible just for tourism, a strategic plan was drawn up and a lot of maintenance work in touristic zones, such as Bugibba, Marsascala, Birzebbuga, Marsaxlokk, Xlendi and Marsalforn was carried out with an investment of more than Lm5 million.

The German company Frosch returned to Malta, the French company Accor came to Malta and the United Arab Emirates embarked on operations to and from Malta.

As a result of Labour's work in the sector, the number of tourists visiting Malta between 1996 and 1998 increased by 60,000, income from tourism rose by Lm21 million and cruise liner tourists went up by almost 60,000.

But now that there was a Nationalist government, tourism was once again going through serious problems. The government was not meeting the aims it had set itself in the sector. Last year, 50,000 more tourists than in 2004 had to visit, but this prediction never materialised. And the tourists who were visiting were spending less, with tourism expenditure in the first 11 months of last year dropping by Lm3.3 million.

Operators were also becoming less optimistic. Since 2003, the Malta Environment and Planning Authority received 10 applications for hotels to be demolished. During the same period, 23 hotels closed down but only eight were opened. Under such circumstances, the Labour Party felt the need to give tourism maximum priority.

Dr Sant said that the government should use taxes not just as a means to collect money but also as a tool for the country to be competitive. The Labour Party believed that the government should help Air Malta so that it would be able to succeed in a liberalised environment. Low cost airlines would also be allowed to operate, although a level playing field was important.

On Gozo the document stressed the need for a Gozo Tourism Authority. Attractions, such as a yacht marina and a golf course, were needed, and there had to be berthing facilities for cruise ships.

The Labour Party's spokesman on hotels and Air Malta, Joe Cuschieri, said the document was the result of extensive consultation with all involved in the sector. He said tourism in Malta was losing competitiveness continuously, even with the impact of the water and electricity surcharge.