Gozo tourism establishments must be encouraged and not be compelled to shift their operations to a more lucrative business such as real estate, according to the Gozo Tourism Association.
Presenting its budget proposals to the government, the association said that the closure of four hotels in Gozo in as many years was ample proof of the state of tourism.
Among its proposals are a lower tax burden on operators in Gozo, a proper and professionally run office of statistics for the island and the introduction of a fixed-wing aircraft link with Gozo using a 20-seater aircraft.
The GTA also attached a copy of a proposal by a private enterprise which is interested in providing this service.
It believes that Gozo Channel should introduce seasonal rates, arguing that the seasonality element of Gozo should be reflected in the ferry crossing rates in the same way it is reflected in the accommodation rates. During the low and mid seasons all crossings between 6 p.m. and 4 a.m. should be charged at rates in line with the Gozitan residents' fare.
It remarked that while Maltese hotels enjoy 65 per cent average annual occupancy, their counterparts in Gozo are scoring a meagre 35 per cent annually.
Accommodation licences to host foreign or domestic tourists are to be amalgamated into one licence in order not to be discriminatory and help to curb abuse, it suggested.
It proposed that both the licences and the MTA contributions for Gozitan self-catering establishments be abolished and replaced with an annual registration fee of Lm50 for a farmhouse and Lm25 for an apartment.
With regard to water and electricity bills, the GTA is suggesting that all tourist establishments in Gozo be charged the domestic rates and not the commercial rate.
The association is of the opinion that in order to mitigate the high seasonal element of the tourism industry in Gozo, the related services should be offered at more competitive prices.
In this regard it is proposing a reduction in the 18 per cent VAT rate on restaurants and other tourism-related services.
Among other proposals, the association is proposing the introduction of basic tourism studies as a subject at secondary school level.