Tourism Minister Francis Zammit Dimech said yesterday that tourist arrivals in October and the first 11 days of November had continued to grow on last year's figures.
Speaking in Parliament during the debate on the Budget Measures Implementation Bill, the minister said that according to the United Nations World Tourism Barometer, tourism in Malta was growing faster than anywhere else in the region. Growth reached 7.6 per cent between January and August compared to 6.7 per cent for southern Europe, which next showed the strongest growth.
Dr Zammit Dimech said September saw an absolute record of tourist arrivals and performance in October and in the first 11 days of November were also very encouraging and positive.
The November results, he said, were significant because they would be compared to performance in November 2006, when the tourism rebound had already started following the introduction of Ryanair flights. This, therefore, would be growth on growth.
The minister said that 969,572 tourists visited Malta during the first nine months of the year, which was an increase of 9 per cent. They spent Lm366.8 million, or Lm19.9 million more than last year.
Of the increase of 80,000 tourists, 47,000 came from the UK and Ireland. Other significant increases were registered from the US, Scandinavia and Spain. During the first nine months of this year, cruise liners brought over 367,705 visitors, an increase of more than 63,000 or 21 per cent.
Dr Zammit Dimech pointed out that the government had in the budget voted a record of Lm16.8 million for the tourist industry, of which Lm10.5 million were intended for the Malta Tourism Authority, an increase of Lm2.5 million. An additional Lm5 million were voted for the upgrading for the product.
The minister said that funds spent by other ministries for the upgrading of roads or promenades also benefited the tourist product.
Dr Zammit Dimech said that budget also provided for investment in the arts and cultural sector. There would be no VAT on the hire of space for cultural activities and on training by accredited agencies. Would the opposition vote against such measures?
Michael Asciak (PN) said that the government was reaping what it had sowed and it was the people who were benefiting.
The number of gainfully occupied had continued to rise since 2004, the economy was growing in a sustainable manner and Malta had achieved the Maastricht criteria and would thus adopt the euro.
The EU's contribution of €850 million to Malta was also the fruit of the government's seriousness. Euro adoption would mean more serious fiscal controls and unbridled debts would not be permitted.
Karl Chircop (MLP) said the budget measures were too little to alleviate the burdens being carried by Maltese families, particularly the ever-rising cost of living.
The reality was that many families are not managing to make ends meet. Moreover, they were not managing to put money aside for a rainy day.
Referring to the Lm1.50 per week cost of living increase, Dr Chircop insisted that this was not enough and that one would still have to evaluate what effect this would have on people's pockets and their income. He listed a number of items which have increased over the past months and years. He said medicines, on average, were six per cent more expensive than in other European countries.
The water and electricity surcharge was also adversely affecting Maltese families.
On the eve of an election, the government was trying to give these families back some of what it had taken. With regard to the children's allowance, Dr Chricop said that, over 10 years, the Nationalist governments reduced its investment in children's allowance by just under Lm50 million and was now returning Lm5 million of the Lm50 million which had been reduced.
Labour spokesman on education and sport Carmelo Abela said he wondered why the government was creating so much hype about the budget and its measures. While it was positive to inform people about the budget measures, the government was doing nothing but propaganda, utilising public funds.
Referring to a comment about credibility, Mr Abela observed that many factories closed their doors despite receiving a letter from the PN that EU membership would not affect their jobs. The hunters and trappers were also told that EU membership would not affect their hobby. Was this credibility?
Turning to the state of the country's finances, Mr Abela said it was not true that the 1996-1998 Labour administration had brought disaster to public finances. He said the problems began before the 1996 general election. Although the EU had told Malta that it had achieved the criteria to join the eurozone that was only thanks to the one-off sales of public assets, Mr Abela warned.
Mr Abela said there was debt that was "hidden". For example, he mentioned the borrowing from APS Bank for school-related projects.
Mr Abela also spoke about the extra costs of several projects and questioned whether these projects were taking longer to please the few who are making more money as a result of this delay.