Government loan subsidy scheme aimed at three-star hotels
The government's soon to be announced scheme to subsidise loans granted to hotels by one to two per cent when the investment is made to refurbish or improve the product is mainly aimed at three-star hotels, Mario de Marco, Parliamentary Secretary for...
The government's soon to be announced scheme to subsidise loans granted to hotels by one to two per cent when the investment is made to refurbish or improve the product is mainly aimed at three-star hotels, Mario de Marco, Parliamentary Secretary for tourism told The Times Business.
"Our surveys show that many people staying in three-star hotels, while satisfied with the level of service, are quite disappointed by the level of product in such hotels. These hotels host close to 23.4 per cent of our bed stock," he said, adding that last year's hotels occupancy showed a drop of 3.4 per cent in the three star occupancy level.
"We believe there is still a market for three-star hotels and we want to help them as much as we can to invest in the product and upgrade.
Some of these hotels were built in the 1970s as family run hotels and it seems they haven't moved on with the times," he said.
In an interview Dr de Marco said that, while he was fully aware of the drop in tourist arrivals in January and February, it was important to make a distinction between drops in arrivals and total guest nights.
"In February, even though we had a drop of 10 per cent in arrivals, we actually had a growth in guest nights of almost three per cent.
"That growth was generated because the average length of stay has actually increased. At least, from that point of view, the result for February was not that bad," he said.
Dr De Marco said from April until November the country had managed to marginally increase its airline seat capacity. "Considering the international situation I think this is quite an achievement," he said.
He said that besides TV campaigns in the UK, the MTA has just launched a TV campaign on the Mediaset stations in Italy, on French television and will launch one soon in Germany.
Asked if he agreed with Finance Minister Tonio Fenech's decision not to cut the VAT rate on restaurants before the next budget, Dr de Marco said the government first needed to ensure that any VAT reduction is passed on to the consumer and that the government has to make its calculations over the loss in revenue from any reduction.
Regarding MHRA president Kevin Decesare's promise to advise his members not to collect the €0.50 tax per person per day on hotel rooms which takes effect in January, Dr de Marco said that getting tourists over to Malta costs money.
"A lot of the money that MTA spends goes on marketing, low-cost carriers and tour operator support," he said, adding that when the government increased MTA's 2009 budget by €3.5 million, it did not ask stakeholders to contribute towards this.
"Every new route opened by a low-cost carrier costs between €400,000 and €500,000. Success does not come cheap," he said.
"Our surveys show that many people staying in three-star hotels, while satisfied with the level of service, are quite disappointed by the level of product in such hotels. These hotels host close to 23.4 per cent of our bed stock," he said, adding that last year's hotels occupancy showed a drop of 3.4 per cent in the three star occupancy level.
"We believe there is still a market for three-star hotels and we want to help them as much as we can to invest in the product and upgrade.
Some of these hotels were built in the 1970s as family run hotels and it seems they haven't moved on with the times," he said.
In an interview Dr de Marco said that, while he was fully aware of the drop in tourist arrivals in January and February, it was important to make a distinction between drops in arrivals and total guest nights.
"In February, even though we had a drop of 10 per cent in arrivals, we actually had a growth in guest nights of almost three per cent.
"That growth was generated because the average length of stay has actually increased. At least, from that point of view, the result for February was not that bad," he said.
Dr De Marco said from April until November the country had managed to marginally increase its airline seat capacity. "Considering the international situation I think this is quite an achievement," he said.
He said that besides TV campaigns in the UK, the MTA has just launched a TV campaign on the Mediaset stations in Italy, on French television and will launch one soon in Germany.
Asked if he agreed with Finance Minister Tonio Fenech's decision not to cut the VAT rate on restaurants before the next budget, Dr de Marco said the government first needed to ensure that any VAT reduction is passed on to the consumer and that the government has to make its calculations over the loss in revenue from any reduction.
Regarding MHRA president Kevin Decesare's promise to advise his members not to collect the €0.50 tax per person per day on hotel rooms which takes effect in January, Dr de Marco said that getting tourists over to Malta costs money.
"A lot of the money that MTA spends goes on marketing, low-cost carriers and tour operator support," he said, adding that when the government increased MTA's 2009 budget by €3.5 million, it did not ask stakeholders to contribute towards this.
"Every new route opened by a low-cost carrier costs between €400,000 and €500,000. Success does not come cheap," he said.