Fiona Galea Debono
Hotels to get breathing space on bank loans
Hotels will be able benefit from a one-year moratorium on capital repayments of pending loans, following a government suggestion that was taken up by the main banks.
The initiative is aimed at improving the cash flow of hotels across the board in the current difficult economic climate. It will assist hoteliers who have taken out loans to develop or refurbish their properties, Tourism Parliamentary Secretary Mario de Marco said yesterday.
It would be useful for hotel owners and operators to have more capital at their disposal to use on further product embellishment, he said.
The moratorium, however, is not automatic. Any hotel wanting to take advantage of the concession would have to approach its bank, which would consider each request on a case-by-case basis, depending, for example, on the track record of the account holder.
The banks would also want to be satisfied that the capital retained would be used in the best interest of the company, Dr de Marco explained.
Quoting the United Nations World Tourism Organisation, he said the situation was "not a crisis in tourism but a crisis that can affect tourism". As opposed to the September 11 terrorist attacks, which affected the desire to travel, people still wanted to go abroad but the economic scenario had affected their ability to do so, he explained.
The Malta Hotels and Restaurants Association is backing the moratorium. Its president Kevin de Cesare thanked the government and the banks for the "well-needed measure", which would allow the hotels to concentrate on marketing.
He expressed confidence in the strong model of the 50-year-old tourism industry, believing that the effects of the stimulus packages around the world would be felt within six to nine months.
Representatives of Bank of Valletta, HSBC, Banif, APS and Lombard banks said they were supporting their customers and the industry in difficult times, as they had always done in others.
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sandro grech
Feb 18th 2009, 09:14
Dear Dr de Marco .How about something be done for us catering establishments who were asked by St.Paul's local council to pay then 1000 Liri for a pavment extation and 2 year later the Lands department turned up and said that unless we remove our tables withen 48 hrs we shall face all the charges . Dear Dr de Marco also note that us bar operaters who respect the indoor no smoking ban we need tabels outside our bars just like any other tourist destination .
Ronald Galea
Feb 17th 2009, 18:39
And again PL sets the standards !!
Now we need the same news for personal customers.
L..Galea
Feb 17th 2009, 13:52
Horace Miceli
I mean its good to hear that private people are being given the same facilities, but not that your cousin had the "benefit" of using it. Neither do I wish other people to have to avail themselves of the facility. This is to clarify my previous posting because it may have given the wrong impression.
L..Galea
Feb 17th 2009, 12:27
Horace Miceli
That's good to hear.
michael turner
Feb 17th 2009, 12:02
Well the hotels definitely need some strong help, but I hope the government has done its homework and that this step is not counted as breaching EU rules, which will only lead to future fines paid by the taxpayers. Mike Turner
Horace Miceli
Feb 17th 2009, 11:23
@ L Galea
People that lose their jobs can already benefit from these moratoriums. (moratoria?).
Unfortunately my cousin had the "benefit" of using it.
L..Galea
Feb 17th 2009, 10:05
How about private persons with house loans who have been laid off or are working reduced days?
FFabri
Feb 17th 2009, 10:02
Altough it seems a very positive move to our Hotel Industry and well done to the Govt.........i doubt that only the owners of the hotels will benefit the most... It's not an open secret that most of them they put their lavish personal expenses on the hotel books, while they put their employees as shield to their outcry.
Now I pretend Govt. to apply same move to all job-less workers!!!
Joe Grima
Feb 17th 2009, 09:41
Finally a step in the right direction. Tourism this winter is in bad shape and, from what I am told, the summer is not expected to be too glamorous either. In the case of teh tourism sector, xcuurebt measures are definitely not enough. Tourism is not just. Hotels but also an entire entertainment infrastructure that has been begging government to withdraw restrictive measures imposed by Governemnt, the least of which is not thr enforicing of closing time at 4 am. These are not the times to carry on with such blindfolded do-gooder measures that visitors can easily compare with more liberal attitudes prevailing in competitive destinations..
The next move now should be towards industry in order to alleviate the many problems our exporting companies are facing. We are out of the competitive league. Some of the problems are caused by Goverenment induced costs. Banks do not seem to be on the side of industry either. There is a role for the Central bank here and also for Government to start dismantling the burdens that it imposed on Industry, the least of which are not the punitive electricity and water tariffs..