Remove passenger taxes to attract more tourists

With hoteliers worried about the last quarter (September 19), I believe that the euphoria of low -cost airlines is over and the country must now re-think ways to keep growth sustainable.

I am sure the Finance Ministry together with the tourism authorities and Malta's top statisticians can work out an easy exercise whose conclusions would lead to the implementation of this idea: to completely remove the incoming/landing taxes and airport charges for foreigners.

The persons responsible for this exercise must consider the following. Calculate the lost revenue from all these taxes and how this would be offset by increased revenues from increased tourism, i.e. the government will earn more VAT from foreign consumers' spending, businesses will earn money and employ more people, so the government will earn more NI, tax from employees, and taxes on corporate profits. That is the direct benefit, but there will also be indirect demand for more goods and services, such as equipment for new hotels, so there will be a positive ripple effect throughout the economy.

Furthermore, another benefit will be that Malta can be advertised as a tax-free country, a cheap place to travel and take the number one spot in any future Travel and Tourism Competitiveness Report.

If this idea is implemented, the increased tourism gained will make the country busier, and everyone involved in the tourism sector, directly or indirectly, will be better off. It would definitely lead to wealth creation in my beloved country.