Prime Minister Lawrence Gonzi said yesterday he was satisfied with Tourism Minister Francis Zammit Dimech, who has been under heavy fire in recent weeks in the face of falling tourism figures.

The Prime Minister's reply when asked if he was satisfied with the Tourism Minister was a terse "yes... next question please."

Dr Gonzi was fielding questions during a press briefing held after the first Cabinet meeting following the summer recess.

Amid rising criticism, hotelier Winston Zahra, now a member of the freshly appointed tourism consultative body, had called for the minister's resignation along with that of Malta Tourism Authority chairman Romwald Lungaro Mifsud. The latter did resign later.

The issues surrounding the poorly performing tourism sector were the main items on the Cabinet's agenda yesterday when Dr Zammit Dimech gave his colleagues a presentation on the current situation.

The government has failed for the second year running to achieve its target set in 2004 to attract an additional 50,000 tourists annually over a three-year period.

The number of tourists visiting these shores in the first six months of the year was the lowest in the past decade, while statistics for July indicate a decline of 2.9 per cent over the same month last year.

When asked for his assessment of the situation, the Prime Minister said the country was obviously struggling with the competition and that the product must improve.

"Success depends on the government," he said, "but it also depends on each and every one of us. We need a leap in quality that can be achieved through investment in restoration, refurbishment and keeping the place tidy but also in the way people deal with tourists."

Dr Gonzi also stressed the importance of a deal with low-cost airlines.

Later in the afternoon, it was announced that the proposals of both Ryanair and EasyJet, to operate services from Luton, Dublin, Pisa and Basel, had been accepted.