The government could have acted to cushion the decline in tourism, which has been cited by the NSO as one of the main reasons why GDP declined by 3.3% in the second quarter, PL tourism spokesman Marie-Louise Coleiro Preca said today.
She said there were several areas which the government had control over, but where little action had been taken. Among them was the tourism product, particularly the cleanliness and upkeep of tourist areas, which was seriously lacking.
Another was price competitiveness, with utility tariffs having had a big impact on prices.
Furthermore, the government had not taken the opportunity provided by the EU to reduce VAT on restaurant services as competing destinations had done.