When push comes to shove...

As the parliamentary debate on Budget 2010 is in full swing, it is pertinent to pause and ponder the real issues which the announced measures, in their diversity, try to achieve.

Clearly, the issue of employment is of paramount importance as this is the key to any economic growth. Conversely, jobs are the first victims in times of recession. The 150 or so measures earmarked for next year have this common aim: safeguarding and creating jobs.

The international recession has undoubtedly had its effect on us too, particularly in manufacturing and tourism, where we have had to brace ourselves and act decisively so that we can assist the private sector through these challenging times.

Throughout the year, the government has convinced local banks to grant hotels a moratorium on capital payments on their loans, from which more than 16 hotels have benefitted.

It also launched a €10 million fund to co-finance tourism projects by the private sector and NGOs. The first allocation was made last week to 30 different projects worth €4.6 million, which will benefit from more than €2 million in co-financing. The projects will help create innovative marketing techniques and develop new attractions for tourists.

The government has launched an interest subsidy scheme regarding hotels and self-catering tourist accommodation - including farmhouses - on loans for refurbishment and extensions.

It has launched a fund aimed at public sector international conferences, given the drop in private sector conferences. This alone helped generate over 30,000 bed nights in booked conferences.

It launched a fund by virtue of which the government and Malta Tourism Authority will be matching any incremental overseas marketing spend by hotels, language schools and DMCs, given the current need for all parties in this industry to market more intensely this year.

It launched a fund to incentivise local sports organisations to attract foreign training camps, tournaments and conferences. This helped generate more than 22,000 bed nights.

The government, throughout the MTA, took the necessary action to obtain more routes at a time when airlines were shedding routes, and marketing more intensely in our core markets for longer periods given the trend in late bookings. This comes at a cost and the government, throughout the year, gave an additional €1 million in funds to the MTA.

That the government has again increased allocation to the MTA in the 2010 Budget is reflective of its commitment to this industry. The additional funds are needed if we are to keep investing in a wider route network, without which we cannot get more tourists, without whom we will not fill those routes.

Admittedly, popular perception of what makes tourism tick is neither routes nor marketing, but the state of 'product Malta'. In this respect, the government has allocated the Ministry for Resources and Rural Affairs a budget of €3 million for tourism zone projects and maintenance and a further €1.3 million to the Environmental Upgrade Committee within the Office of the Prime Minister.

Moreover, a budget of €430 million is expected to be spent over this year and the next on various projects aimed at improving Malta's infrastructure and product offer. These vary from the construction and maintenance of roads, national projects, the restoration of our historical and cultural heritage such as Auberge de Castille, the Grandmaster's Palace, the Collachio area in Vittoriosa and Wignacourt fountain in Rabat; the regeneration of Grand Harbour as well as the funds allocated for emergency repairs to Fort St Angelo.

With regard to the EU-funded tourism axis projects, most of the tendering processes have now been completed and works will commence over the next year. These projects will enhance our product through the restoration of bastions, the embellishment of coastal stretches in Sliema and Qawra, a new promenade in St Paul's Bay, a garden and heritage trail in Pembroke, and a visitor attraction in Qawra.

All these will contribute to helping Malta keep up with the times, for the sake of us Maltese who live here, but also for all those who choose to spend money to come as tourists.

Ultimately, this Budget has shown that the government has listened to what various stakeholders had to say. The government has pondered and deliberated on the best course of action and, most of all, it had the courage and determination to do what needs to be done.