The Labour Party yesterday criticised Prime Minister Lawrence Gonzi for failing to cut VAT on tourism services while other countries had already done so or were planning to.

Dr Gonzi was ignoring calls being made by the Malta Hotels and Restaurants Association and other operators in the sector, Labour tourism spokesman Marie Louise Coleiro Preca complained. This was the time to stimulate the tourism sector by making Malta more competitively priced, she added.

"Consumers are being more careful about spending their money and are going to cheaper destinations for their holidays, at the expense of our country," she said.

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