MHRA reports agreement with government to soften utility tariffs hike
Agreement has been reached in principle between the government and the Malta Hotels and Restaurants Association on ways to soften the impact of the increase of the utility tariffs on the tourism industry, the association's president, George Micallef, said today.
He said that an announcement would be made once the finer details were ironed out.
Mr Micallef said the problems in the tourism sector were mainly two. Firstly, operating costs were increasing at a rate which could not be absorbed through increases in the rates of services offered, as the market remained very price sensitive.
Secondly that room rates were decreasing to a level which was leading certain sectors of the industry to become unsustainable.
He said that since the announcement of the rise in the utility rates, the MHRA has held a number of meetings with the Minister of Finance and Parliamentary Secretary for Tourism to address these two problems, by ensuring that the government invested more money to entice more seat capacity from new regions, supported with marketing campaigns.
Secondly, the MHRA proposed a number of mitigation measures to help soften the impact of the increases on the hotels and restaurants sector until the market situation improves.
Agreement had been reached in principle and Mr Micallef said he hoped that once the finer details were confirmed, an announcement could be made in the coming days.
Mr Micallef made his remarks at a half day conference for the restaurants sector to discuss a number of issues affecting the sector during these challenging times.
He underlined the importance of the restaurants sector within the tourism industry, not just in terms of its significant contribution to tourism earnings and employment generation, but also in terms of the overall experience to visitors and that of local patrons.
He further stated that what clearly came out from the conference was the importance of maintaining standards and that of offering value for money whilst remaining competitive.
Mr Micallef said that costs were rising at a rate that may render a number of operators in this sector unsustainable. The rise in the utility rates was, on its own, estimated to cost the restaurants sector collectively an additional €1.8 million annually, Mr Micallef said.
9 Comments
Post comment
Please sign in or create your Account to post comments.
lgalea
Feb 10th 2010, 09:59
Maurice Cachia
Ghidlna fejn toqghod Maurice ghax mid-dehra ma toqghodx lejn in-naha t'isfel ta' Malta.
Joseph E Briffa Tell the people where you live Mr Briffa so that they will know why you are writing and reasoning as you are doing.
Joseph V. Grech
Feb 10th 2010, 02:55
Some people always get what they want - even if getting it may be rather unjust on others who don't!
I personally do not mind if government reaches some sort of agreement with MHRA to ease the burden of the Utility Bills especaillay if the aim is to safeguard jobs.
But I wish to ask two questions:
Is it true that many hotels / restaurants owe government MILLIONS in unpaid Utility Bills? If this is really the case will this taxpayer money ever be collected - or will the slate just be wiped clean?
Is it not SCANDALOUSLY UNFAIR of government to impose unjust and discriminatory Utility Bills terms on owners of summer homes? Government even considers that such dwellings are inhabited by ''0'' residents - with a view to prevent any right to Utility Bills reduction, of course! Is this ethical and just dear Prime Minister. You are grossly mistaken if you look upon the owners of these summer homes as the rich of this land!
Government needs to wake up to this injustice - before it is reported for this abusive discrimination against a section of the population.
A. Borg
Feb 9th 2010, 19:18
Maurice Cachia,
Barra minn Malta Sur Gharef Maurice Cachia fejn isiru dawn il-progetti in-nies ta madwar jigu ikkumpensati u f'Malta jista jsir ukoll per ezemju jhallsu biss in-nofs tal-kontijiet tad-dawl u l-ilma.
Jien ma nafx min fejn gibt li jien issugerrejt li ssir fin-North imma tan-North iridu jaghmlu tajjeb ghall-kannen li gew mitfugha fos-South.
Joseph E Briffa
Feb 9th 2010, 18:36
Maurice Cachia makes several good points. The Power Station is built in the south- east of Malta because of the prevailing winds - the North West, which blow for 360 days in the year. Extensions of the plant have perforce to be sited in the adjoining area. The same goes for the Freeport extension; the proposed area is engulfed within the existing development. Pity the Marsaxlokk Bay suffers from pollution but unfortunately it's the only big bay in Malta and it is now an insustrial zone. Residential and industrial zones don't mix. This does not mean that palliative measure should not be taken such as the planting of hundreds of tall trees in the vicinity to purify the air and mitigate the hardships of the existing residents. It also follows that permits for the development of residential buildings in that zone should be discouraged or even withheld.
Maurice Cachia
Feb 9th 2010, 17:55
Anthony Dimech - Tghid mhux ser nibnu power station gdida f'post iehor biex niggeneraw l-elettriku ghalik u ghalija? Ir-raguni u l-logika tghidlek li tkompli tkabbar fejn diga' jezisti wiehed u f'dal kaz Delimara fejn ma joqghodux nies. Dak imbena u hemmhekk irid ikompli jinbena l-gdid. Ghar-rigward tal-freeport, jekk inti ma tiekolx mill0-freport dik affarik, Haddiehor huwa impjegat hemm u la darba l-freeport jinsab fejn hu, hemmhekk biss jista jsir tkabbir tar-roqgha li fadal. Ir-raguni u l-logika hekk jiddettaw. U hekk isir. U mbaghad ghax ma jghejdux hmerija ohra: nisparaw ghall-arjuplani halli ma jdejquniex. Hekk nigu sew. Le ejja nibnu power station fl-ghadira, halli nnehhu l-ambjent li hemm, ejja nibnuh ix-xemxija halli jkun north. Bla argumenti serji. Araw min irid jiddeciedi l-futur ta' Malta u l-Maltin.
John D. Farrugia
Feb 9th 2010, 17:35
What about the operating costs of families?????????? Or are we about to "grade" families too. In such case the majority will soon be classified as unsustainable families.
U nghajjtu bil-gustizzja socjali !
TAL-MISTHIJA !!!!!!!!!!!!!!!!!!!!!!
A. Borg
Feb 9th 2010, 17:00
Ahjar hsibt f'min hu batut l-ewwel u mhux sallabtuh izjed minn Kristu!
Ahna ghalina tas-South hlief extension tal-Freeport u tal-Power station m'hemmx!
Mark Zerafa
Feb 9th 2010, 16:44
A good thing if this will save jobs.
However, I have the following reservations:
Not all the decrease in business level must be faced by the workers - shareholders also have to accept that their profits may be lower.
All hotels who recieve some reduction in their utility tariffs must then ensure that they do not waste. We have had enough of hotel facades lit up, and blatant waste of resources, just because their utility rates are much lower than joe citizen.
lgalea
Feb 9th 2010, 16:29
Good job, but what about the rest of us?