Matthew Xuereb
50c bed tax will not be postponed again
The 50c tax on each bed night in hotels will not be postponed again and will be introduced as planned in April, despite calls by hoteliers to shelf the tax that they say will impinge on the country's competitiveness.
The tax was meant to come into force on January 1 but had been postponed to April when it was clear the tourism industry was facing a difficult year.
A Finance Ministry spokesman said the government had no intention of postponing its introduction again.
The bed tax was announced in the Budget for 2009 with a view of implementing it at the beginning of 2010.
However, the decision did not go down well with the tourism industry which see it as undermining the sector. Hoteliers also complained that they would end up being tax collectors, having to pass the levy on to the government.
The Malta Hotels and Restaurants Association has repeatedly called on the government to postpone the introduction of the tax a second time.
MHRA president George Micallef has insisted it will create more problems in addition to those already created by the new utility bills.
Addressing an MHRA meeting last month, Mr Micallef said the reasons behind June's decision to postpone were more pressing now than earlier in the year. At the moment, tourists were being more careful about how they spent their money.
When asked about the tax, Finance Minister Tonio Fenech said the government had to recoup money to re-invest in the tourism industry.
"We subsidise tourism by €33 million a year. Low-cost airlines are costing the country about €5 to €6 million a year.
"This is taxpayers' money. We need to get the tourists here but at the end of the day there has to be a value. No industry can expect the public to subsidise it indefinitely. Our social responsibility is towards the needy - and not everyone is the needy," he had said.
According to the latest MHRA survey, hotels in Malta are predicting a drop in revenue of €54 million in 2009 when compared to the previous year and are bracing themselves for a further blow with the increase in energy prices.
Announcing the government's decision to postpone the introduction of the new tax to April, Parliamentary Secretary for Tourism Mario de Marco said the decision was taken so Malta could remain competitive.
Similar taxes already exist in other European countries such as Austria, Belgium, Croatia, the Czech Republic, France, Germany, Hungary, Montenegro, Poland (which is on a voluntary basis), Slovenia, Switzerland and certain municipalities in the Netherlands.
With an average stay of 8.5 nights, this tax would cost a tourist €4.25 for the whole stay. Between January and November last year, Malta achieved 9.5 million nights. With the new tax and the same number of guest nights, the government would rake in €4.75 million in a year.
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Galea. L
Jan 6th 2010, 09:34
Michelle Pirotta
Can you indicate what compensation all the persons collecting tax on behalf of the Government such as self-employed persons, Notaries etc are getting from the Government? No Michelle, they are slave labourers employed for nothing by the Government to collect taxes. Ask any of them and they will tell you. Are you ready to work without being paid Michelle?
Dennis Gorden
Jan 6th 2010, 09:09
You're not far our Mr.Gatt, we know exactly what you mean, i know we spent 2 good days in Bugiba and the rest of just below what we had expected. Never again.
Jos. Gatt
Jan 5th 2010, 19:16
Whats the big problem if the hoteliers and the restaurants have to pay the extra tax, this is only transfered on to the tourist's bill so why all the bitching? its the tourists who are [aying the extra,, i think possibly if the tourist have to forkout the extra, 9 times out of 10 they moan about the quality of the service and not the extra few cents. Yes or No ?
mark galea
Jan 5th 2010, 17:33
go on gonzi & co, a little bit more effort and you'll wipe out tourism here in malta once and for all!!!!, while you're at it, how about adding another 50c per km for tourists to drive on our perfect european standard roads, ay!! and how about a sunshine tax too!!, however keep in mind that if as you say you subsidise tourism by Euro 33 million per year, at this rate you're going to need double that amount to subsidise unemployed people currently working within the tourism industry.
Henry Calleja
Jan 5th 2010, 16:41
I wonder why we're making all this fuss? If any tourist moan about paying some 4 euro extra, I simply tell him to stay at home because he is no tourist at all.
A Camilleri
Jan 5th 2010, 16:20
If the hotels and restaurants are so concerned, they may consider giving each couple a complimentary bottle of Chianti which they buy for less than Eur 3 and sell for Eur18.
Barrie Smith
Jan 5th 2010, 15:30
Go on Dennis my son you tell'em. Thats the way to do it, after all the hotels and restuarants are getting away with murder no matter how much they complain, i have never as yet meet a tourist that complains regarding paying a few extra cents have you be honest? now Squire
Dennis Falzon (Germany)
Jan 5th 2010, 15:11
I also think its a good idea not just 50cents why not go the whole hog and put it up 5€ per bed, after all the tourists come to our islands to spend money, well now its there chance to spend it. Naturually the restaurants and hotel assoc. are going to complain, but thats their job to complain, we need to get our country back on its feet, and Gonzi has the right idea same as any other government in the EU, i live in Germany and often we visit Austria, there its exactlky the same, i have to pay the extra this year so whats different about Malta, and believe you me 50 cents is peanuts compare to other tourists resorts on the mainland. 5€ would be a just tax -levy.
Michelle Pirotta
Jan 5th 2010, 14:35
@L Galea
"with no compensation at all".
So for you, the fact that Govt massively increased the MTA budget for advertising thus aiming to get more tourists for these same hotels...is NO compensation?
Tghidlix li coz of 4 EUR a week a tourist will not come to Malta!
Lawrence Cardona
Jan 5th 2010, 14:18
I agree with the 50c or maybe even a euro here the economy is going good people are spending saving and even donating some of there money so if a turist is here it means ha has money to spend so yes lets take some for the country go on gonzi bring money home
Mvella
Jan 5th 2010, 13:02
@A Camilleri
I see that you are seriously missing the two major factors in this issue:
01) The government is the first to state that the taxes are to be implemented but the last ones to collect it, dumping the matter on the front liners (hoteliers, farmhouse owners etc). Now tell me, how are we going to charge this tax if you have relatives coming down from abroad and they end up staying at your house? Are they not the same as hotel tourists and are they therefore not to pay the same tax?
02) It is not the UK we need to compare ourselves with. Unfortunately, for the time being Malta is generally still being placed on the same 'exotic' level as Egypt, Tunisia and Turkey - but guess what, like it or not; These destinations are half the price of Malta but double the quality ..
Comments like these remind me of a saying; Hearing the bells toll, but not sure where to find the bell tower' ...
Galea. L
Jan 5th 2010, 12:05
Another tax from the incompetent Gonzi when our tourism industry is down.
"Hoteliers also complained that they would end up being tax collectors, having to pass the levy on to the government."
Notaries all those who have any type of business have already been made tax collectors without any compensation by the PN Government with the introduction of VAT and the collection of the temporary tax on contacts that has to be collected by the Notaries. This is forced labour as all those people are not paid to collect tax on behalf of the government. Well, history teaches us that the PN has never been in favour of workers.
Mvella
Jan 5th 2010, 11:37
All very easy to implement another tax - however as always the governement remains very hazy on how this tax is to be collected... I am certain they will pass the bucket to the hoteliers and other suppliers instead of taking responsibility and place a 'tax collector' at the airport themselves... God forgive they would need to train this person to be 'customer orientated and have a friendly smile' ..... Nevertheless, if Cambodia can do it - so should Malta ...
John Micallef
Jan 5th 2010, 11:36
Can anybody, please anybody try and make this government understand that the tourism industry is being ruined due to the increases in costs and taxation ! Has the government bothered to look in bugibba and notice most hotels have been turned into apartments because the business is not sustainable ! I work in the industry on various departments and we are not competing with other destinations, of course tourism does not increase ! its because OTHER COUNTRIES ARE BETTER THEN US ! Younger adult tourists go elsewhere once the nightlife scene is being ruined by the government ! older tourists go elsewhere because Malta is becoming too expensive ! Rates have been slashed in hotels so they can just manage to cover costs and then further taxes have been imposed. The only positive thing we have is the weather.......wait wait i think Spain, Italy, Cyprus and Greece have it too !
A Camilleri
Jan 5th 2010, 11:25
Tourism is meant to be a commercial activity which generates funds and employment for the country, and not a charitable institution to be subsidised. If the tourists we're getting here can't cover the miserable fifty euro cents a night, one wonders on the quality of tourists we're targetting. Tourists still get an excellent deal here, considering the relatively low hotel prices, the weather, the car hire prices, the nightlife, water sport activities, low cost routes etc. The 50c contribution goes nowhere near meeting the government costs of providing for the increased infrastructural requirements to cater for the over 1 million annual visitors. A 50 cent charge here and there has never been a determining factor in choosing a destination for my holidays. Some places are more expensive than others. Do tourists shun the UK because their hotel prices are dearer than say, Spain's?