Ministry defends tourist 'bed tax' decision

The Finance Ministry this evening defended its decision to introduce the 50c ‘bed tax' to be charged for every night a tourist spends in a hotel, saying it was minimal compared to government spending on tourism.

In a reaction to angry statements by the MHRA and FATTA (see separate story), the Finance Ministry pointed out that government spending on tourism was now double what it was 10 years ago and revenue from this tax would be only a fraction of that amount.

Furthermore, this tax, similar to other schemes abroad, would only see tourists spending an additional €3.50 on a week's holiday in Malta.

The ministry pointed out that the government was investing to improve seat capacity on air routes to Malta, including the attraction of more airlines. It was spending more on overseas promotion and on improving the tourist product.

A number of schemes had also been introduced so that Malta could retain its competitiveness. Among them were an interest subsidy scheme for hotel embellishment and extension projects, assistance for conference and incentive travel which had so far attracted 13 conferences and almost 30,000 bed nights to Malta, and assistance for tourism promotion by private operators which had so far been taken up by 25 applicants.

Tourism-related assistance was also being given to sports organisations and local councils.

See also

http://www.timesofmalta.com/articles/view/20100105/local/hoteliers-urge-government-to-reconsider-utility-rates-guest-night-tax