'Positive and negative' budget for tourism - MHRA
Through the budget, the government is giving a clear sign that it looked at the tourism industry as a vital tool for Malta’s economy, the Malta Hotels and Restaurants Association (MHRA) said this afternoon.
It said that the allocation of further funds to the MTA to help market the island, particularly in the prevailing difficult market conditions, showed that the government had understood that investment in marketing reaped the desired returns within a very short time frame.
The MHRA said it welcomed the Finance Minister's statement on the positive effect of low cost airlines on the tourism industry. The association encouraged the Malta Tourism Authority to reach a conclusion on current negotiations with major airlines to take advantage of the benefits of the introduction of new services in the shortest time possible.
“Under the current scenario it is extremely urgent that new routes are introduced without delay,” it said.
The MHRA welcomed the retention of the five per cent VAT rate on accommodation but said that despite its recommendation for VAT rates to also be reduced on restaurants, they remained the same.
The association praised the budget’s green measures and encouraged the government to further reward entrepreneurs who continued to invest in eco-friendly methods.
It welcomed the measures on the changes in tax bands but said it was worried that the cost base of the hotel and restaurant product would be negatively affected with the new electricity tariffs.
The association also expressed concern at the announced €0.50 tax per bed night which comes into force in 2010.
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Benson Williams
Nov 5th 2008, 14:01
I fully agree with Mr.Press no matter how much the tourist board spend on promoting malta regardless, I can foresee the majority of the Brits. in 2009 will be spending their holidays and cash outside the Euro Zone. It is of course common sense when they realise that the £ in Malta is worth virtually nothing against the euro, and i know how Mr.Navarro feels, because i'm in the same boat .The sooner our £ is changed???? over to the euro the better it will be all round.
Phil Press
Nov 5th 2008, 12:26
@ John. I agree with everything you say regarding the £. I also live over here and have seen the difference, from the Lm. to €, chanegover. I do not think anyone is putting the blame of the poor exchange rate, at the Maltese government.
I think the point in question is, people will not holiday any where in the E.U zone, with the exchange rate stands against the £. no matter how much is spent on, promoting Malta.
John Carmel Navarro
Nov 5th 2008, 09:07
I can certainly understand the concern of Tourist from the UK with regards to current exchange rates between £ to Euros, however the root of the problem is the Sterling. How long can it survive outside the European money system, I think its time for the UK to stop playing at being European and adopt the Euro. I speak from my own experience as I am on a UK pension which is shrinking every month. I certainly do not blame the Maltese budget for the state of the sterling, and what local Banks are giving for the £.
Maria Falzon
Nov 4th 2008, 20:18
Yes Mr. Press. that's why the govt' shouldn't have increased the utility tariffs just now in the way he did. Today, the fuel went up again, even more than what was said during the budget yesterday. This is the only place in the world where fuel is on the increase. May the Lord be with us.
Benson Williams
Nov 4th 2008, 18:39
Tourists? What tourists there won't be many about for a long time to come, and 2009 is no exception i'm afraid, my holidays are best spent in Blighty where my £ is actually worth a £. i won't be receiving much for it in Malta unfortunately and we Brits are at a losing end.
Phil Press
Nov 4th 2008, 17:13
With the state of the €, against other currencies, at the moment. nowhere in the EU. Can expect tourists, from outside the zone. B.O.V. this morning were giving € 1.22. for the £... You cannot at the moment buy a lot for € 1.22. in Malta.