Tourism potential seen in organic Gozo, subterranean Valletta

Promoting Gozo as Europe's best kept secret, developing health tourism, transforming Malta into a diplomatic centre and making Valletta a unique experience for tourists would help the country reverse the tourism trend, according to the Malta Employers' Association.

In its reaction to the government's pre-budget document, the MEA said:

"The subterranean in Valletta can be turned into a unique experience for tourists if it is cleared of the tonnes of rubbish that have accumulated over the centuries.

"The removal of Valletta gate has to become a priority - it is an insult to the concept of a city built by gentlemen for gentlemen.

"Fort St Elmo is also a gem that cries out for restoration. In the way that Gozo is treated as a separate destination with a distinctive strategy, Valletta may also benefit from a similar approach."

On Malta's potential to become a diplomatic centre, the MEA said: "The historical, geographical and cultural characteristics of Malta can be promoted for it to become a centre of dialogue between the northern and southern hemispheres."

As for Gozo, proposals being made by the MEA include the upgrade of public transport, the introduction of a regular shuttle service from the airport to Cirkewwa, the introduction of a programme to shift all agriculture in Gozo to organic - making it possible to promote the island as a natural haven - the island's development as a centre for health tourism, the rehabilitation of its heritage and the development of pedestrian areas and country walks.

MEA president Pierre Fava said that the main aim of the document was to propose ways of generating employment in the country. Another aim was to ensure an adequate labour force suitable for the needs of the country for students to be able to find employment on leaving school. Director general Joseph Farrugia said that the MEA expected the budget to address issues that affected Malta's overall competitiveness. Among the priorities was the conclusion of the negotiations leading to the port reform. If it had been promised that port rates were to go down, this should happen without any further delay.

Also important were tax and national insurance reform, which could be used to stimulate the economy. The announcement that the government intended to relieve the overall tax burden by Lm8 million was a welcome gesture.

The MEA said that the best option was to review the income tax bands by extending the onset of the maximum rate of tax, rather than reduce the maximum rate of 35 per cent marginal tax.

In its document, the MEA stressed the need for an energy policy since the economy has become increasingly dependent on the price of fossil fuel and energy prices had also affected the country's competitiveness.