Labour tourism plan 'based on vague promises'

The Labour Party's document on the regeneration of tourism proposes nothing more than vague promises and reflects projects already being carried out by the government, according to the Tourism Ministry.

In a statement yesterday, the ministry dismissed the tourism document approved at the Labour Party's general conference last weekend as one based on false premises.

The ministry accused the MLP of misinforming its delegates when it claimed tourism was on the decline. Tourism in 2004 had increased by 3.5 per cent with a further increase of 1.4 per cent last year and revenue had gone up too.

While every government would prefer to offload the tax burden from each sector, reality dictated otherwise, the ministry said. Besides, it was worth noting that the government has already reduced the VAT rate on tourism services.

The promise that a future Labour government would set up a task force between the private sector and the government to revise the tax system was reminiscent of Alfred Sant's vow to eliminate VAT, which was eventually replaced by CET.

The tourism ministry said several other initiatives proposed by the Labour Party were actually being realised.

For example, the MLP was proposing that a number of individuals should be employed with the government to channel EU funds to the private sector and NGOs to boost tourism. This was what the EU Policy Unit within the Tourism Ministry was doing.

The ministry called on the Labour Party to clarify how it intended to go about its promise to bring low cost airlines to Malta without explaining how it could assist Air Malta to survive in a liberalised environment without shedding workers.

"The government is giving the utmost importance to the tourism sector. The results are there for all to see, both in the number of tourists and the government's investment in the sector," the ministry said.