Government to waive host families' contribution to MTA
The government has decided to waive the Lm25 annual contribution which host families make to the Malta Tourism Authority, Tourism Minister Francis Zammit Dimech has confirmed.Replying to questions by The Times Business, the minister said the decision...
The government has decided to waive the Lm25 annual contribution which host families make to the Malta Tourism Authority, Tourism Minister Francis Zammit Dimech has confirmed.
Replying to questions by The Times Business, the minister said the decision followed talks between the MTA and Feltom, the federation of English language schools, on incentives for host families.
"Our objective is to reverse the decline in the number of licensed host families and help the host family sector return to its former strength," the minister said.
"Host families are not merely accommodation establishments, but an integral part of the language learning experience. They do not only provide board and lodging but also an opportunity for the students to practise their conversational English during their stay.
"As a result of our analysis of the situation, it has been decided to waive the 2007 MTA contribution by host families. This is also what we plan to do for the forthcoming years."
The minister said host families that had already paid their contribution would be given a refund.
A joint campaign would also be conducted between the ministry, the MTA and Feltom to encourage more families to host students. Dr Zammit Dimech pointed out that the government had already established a favourable and user-friendly tax system for host families, with the first Lm1,000 being totally tax-exempt and two-thirds of all income earned over and above that deemed as expenditure and therefore also not taxable. Moreover, host families did not have to pay any social security contribution in respect of this activity.
He said talks with Feltom had been ongoing in a variety of fora including the MTA board and at segment level, covering a variety of subjects including visas, marketing and promotion and student management issues. The number of host families has declined over the past 18 months, from 2,013 at the end of 2005 to 1,359 at the end of last year and 856 at present. However, many host families renew their licences just before the summer. The Lm25 contribution is currently reduced to Lm20 when payment is made promptly. Families also pay a licence of Lm20 if they are to host up to two students, and Lm40 for up to four students.
Dr Zammit Dimech said travel to Malta to learn English was an established segment within the marketing strategy of the Malta Tourism Authority, generating in excess of 60,000 tourists annually.
"The growth potential of this segment is guaranteed by the growing popularity of English internationally. Its continued development in Malta requires that we maintain the high standards of our educational institutions, the adequate supply of good host families and the further tapping of the senior student and corporate market to extend the age grouping and the seasonality of the language market."
Replying to questions by The Times Business, the minister said the decision followed talks between the MTA and Feltom, the federation of English language schools, on incentives for host families.
"Our objective is to reverse the decline in the number of licensed host families and help the host family sector return to its former strength," the minister said.
"Host families are not merely accommodation establishments, but an integral part of the language learning experience. They do not only provide board and lodging but also an opportunity for the students to practise their conversational English during their stay.
"As a result of our analysis of the situation, it has been decided to waive the 2007 MTA contribution by host families. This is also what we plan to do for the forthcoming years."
The minister said host families that had already paid their contribution would be given a refund.
A joint campaign would also be conducted between the ministry, the MTA and Feltom to encourage more families to host students. Dr Zammit Dimech pointed out that the government had already established a favourable and user-friendly tax system for host families, with the first Lm1,000 being totally tax-exempt and two-thirds of all income earned over and above that deemed as expenditure and therefore also not taxable. Moreover, host families did not have to pay any social security contribution in respect of this activity.
He said talks with Feltom had been ongoing in a variety of fora including the MTA board and at segment level, covering a variety of subjects including visas, marketing and promotion and student management issues. The number of host families has declined over the past 18 months, from 2,013 at the end of 2005 to 1,359 at the end of last year and 856 at present. However, many host families renew their licences just before the summer. The Lm25 contribution is currently reduced to Lm20 when payment is made promptly. Families also pay a licence of Lm20 if they are to host up to two students, and Lm40 for up to four students.
Dr Zammit Dimech said travel to Malta to learn English was an established segment within the marketing strategy of the Malta Tourism Authority, generating in excess of 60,000 tourists annually.
"The growth potential of this segment is guaranteed by the growing popularity of English internationally. Its continued development in Malta requires that we maintain the high standards of our educational institutions, the adequate supply of good host families and the further tapping of the senior student and corporate market to extend the age grouping and the seasonality of the language market."