Hotels and restaurants that invest in upgrading their properties will be eligible to a subsidy on interest rates incurred through bank loans in a new €3 million government scheme.
The tourist establishments will get a 1.5 per cent subsidy on interest if they apply for a refurbishment loan and a one per cent subsidy for extensions.
The scheme, that will subsidise interest for the first €600,000 invested, was particularly aimed at three-star hotels but all hotels and restaurants were eligible to apply, the Parliamentary Secretary for Tourism, Mario de Marco said.
A survey the Malta Tourism Authority carried out last year showed that just over half the tourists who stayed at three-star hotels were not satisfied with the physical appearance of the hotel.
The study also found that most three-star hotels, which saw a decline in their popularity over the past year, had not been refurbished for several years.
Dr de Marco noted that the scheme was distinct from the EU-funded €10 million grant scheme for sustainable tourism. It was being launched to further help the tourism sector through the economic crisis and followed the 12-month bank moratorium on loans granted to hotels for capital repayment. Since the moratorium only applied to those who already had a loan, the government felt the need to launch this new scheme, he said.
Dr de Marco said the tourism sector was changing and today most tourists travelled independently as opposed to being guided by tour operators. These tourists had high expectations that were to be met.
Finance Minister Tonio Fenech said that, given the global economic climate, the government felt the need to take "extraordinary steps" to help out.
"Opportunities come about if we recognise the need to take a step forward, and not backwards, in this economic climate. It is important to upgrade the services we offer," he said.
He added that the offer would open in July by which time those interested had to carry out preparatory work such as applying for planning permits and obtaining bank documentation. Once submitted, the applications would be processed by the MTA.