Bed tax being replaced by eco contribution
The 50c bed tax is being shelved and replaced with a €3.50 eco-contribution per tourist payable upon arrival, irrespective of the length of stay, Parliamentary Secretary Mario de Marco announced this morning.
He said this would increase the government’s revenue by an estimated €3.5 to €4 million which would be reinvested in the tourism industry through a number of initiatives aimed to encourage hotels invest in tourism.
The first initiative was an increase in the number of routes serviced by Malta. Sixteen new routes were to be introduced this year by a number of airlines, including Air Malta, Ryanair and Easyjet, he said..
The fact that Ryanair would have a plane based in Malta meant the introduction of six new routes by this airline. The 16 new routes were expected to increase seat capacity to Malta by 7.5 per cent, Dr de Marco said.
Finance Minister Tonio Fenech said another initiative was aimed to encourage hotels invest in alternative energy. €3 million to €5 million were being allocated to help hotels invest in alternative energy to reduce consumption.
Hotels were also being helped with energy audits to enable them to know what they were consuming. The government was also considering the possibility of soft loans to finance part of this investment.
The government was also helping hotels expand, refurbish and upgrade through schemes with Malta Enterprise. Currently, the government subsidised up to 1.5 per cent of hotels’ interest on their loan. This was now going up to three per cent.
The government was also extending the budget for joint marketing schemes through which it matched the money invested in marketing.
Dr de Marco said the government was extending the possibility for hotels facing difficulties to approach a government task force for assistance.
MHRA president George Micallef said the association was pleased with the agreement reached and although this year would still be a challenging one, especially due to price sensitivity, the schemes would not yield short term but long term results.
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smifsud
Mar 5th 2010, 16:53
nickel and dime everything why dont you !!...its like you order food and you have to pay for the tomato sauce and salt and pepper and bread ....get real we are in a global recession ,,,do you think Malta is exempt from this?? ...workers from all over the world ar getting kicked and there wages reduced ....its not a good move at all ....
Dominic Vella
Mar 5th 2010, 11:52
Alfred Cassar "If you spend so much for your holiday would an extra €3.50 make any difference on your decision where to go for your holiday."
This is a classic micro economics question of supply and demand. If you increase the price slightly of any competitive product, you will sell slightly fewer. The question therefore is whether the tradeoff is worth it. e.g. if the average tourist spends €500 in Malta, and 1% of the tourists go to a competitor country next year, then we gain 99 X 3.50 and lose 1 X 500 = +346.5 -500 = -153.5. So in this fictional example we lose, but the real numbers will probably be negative.
It's also a question of 'wallet share'. Seen as a whole, the tourists have a budget to spend. If the government is taking €4,000,000 from them, then there will be less of that 'wallet share' to spend on ice creams, coffees etc. The result is that the state increases its size and small traders lose out.
Dominic Vella
Mar 5th 2010, 10:51
One wonders why the MHRA agreed to this. A flat tax like this clearly favours the big 5 star hotel companies rather than the small 3 star independents. Firstly the 3.50 is obviously a bigger percentage increase on bill for staying in a 3 star than a 5 start. Secondly, the biggest hotels will have the political clout and the connections to win the lion's share of the government subsidies and schemes.
laurence schembri
Mar 5th 2010, 08:52
How is this €3.50 going to be collected? Answer was given last night by Tonio Fenech: We haven`t worked it out yet. Please Minister!
charlot Farrugia
Mar 5th 2010, 02:30
i believe in paris there is a similar tax. 1 euro a day or something like that and you have to pay it at the hotel as part of the service charge.
R.J Micallef
Mar 4th 2010, 23:47
Maybe a 1 euro Eco tax on departing/arriving passengers would have been more effective ?
I wonder what kind of tourist would put off not visiting Malta because of the measly 3.50.........surely not the quality tourists .
Danny Doughty
Mar 4th 2010, 23:27
@Alfred Cassar, Alfred its not the fact we will not return to malta its the prinicipal I will always return to Malta because I love the place and yes i will pay the 3.50 tax and I can assure you i spend more than 100 euro's on holiday please tell me Alfred where is the 3.5 euros going is somebody going to follow me around with a bag to catch my emmissions hahahahahaha dont think so, you know as well as me its a back door TAX !!!!!!!!!!!!! good health
Leslie Parker
Mar 4th 2010, 22:45
Are passengers on 1/2 day visits to Malta on cruise ships classed as tourist? and pay the ecotax on a leaving the ship
Alfred Cassar
Mar 4th 2010, 21:00
I think those who are saying that they will not come to Malta anymore because of a €3.50 tax do not spend more than €100 when on holiday. Come on guys we're talking of €3.50 (Lm1.50). If you spend so much for your holiday would an extra €3.50 make any difference on your decision where to go for your holiday.
If a foreign country like, say, England introduces a tax of €5, it will never cross my mind to say that I will never go to England again in my life. Come on, let's be realistic.
joe falzon
Mar 4th 2010, 20:45
oh, doesn't this play on words remind you of when a certain person said he wasn't going to have us pay a tax on sewage, but a 'tariff'?
joe falzon
Mar 4th 2010, 20:41
a tax by any other name is still a tax ---- !!!!!!!!!!!!!!!!!!!
Jerry Small
Mar 4th 2010, 20:35
I say Richard Hubbard, the Maltese my friend are getting a bit too big for their boots, and by charging an entrance fee they are going to fall flat on their face as our lot are getting wiser to their little games, we've been coming over to malta for the past 4 years, but not any morerrrrrreeerrrrr. so i say stuff'em. J.Small Brighton GB
Gerard Cassar
Mar 4th 2010, 19:36
Euros 3.50 that's the average stay of tourists 7 days. The government wil increase its revenue, the Hoteliers will not charge any bed fee, the tourists will have to pay 50 cents per day Were is the difference? In the name.
How are the 3.50 Euros will be collected and by whom? On arrival at the police immigration or cashiers will be installed to collect the the fee?
Or will the hoteliers collect the amount from each arrival. Confused most confounded!
John Matthews
Mar 4th 2010, 19:01
Fine on one condition. The Maltese tourist pays a similar kind of tax in the countries that they visit.
ALSO
As someone else pointed out, who , what or how decides who is a tourist? AND what about the emigrants who are coming back to visit families? DISGUSTING CON IF YOU ASK ME.
Lawrence Fenech
Mar 4th 2010, 18:25
Hekk tajjeb. Ghal-inqas issa turist jekk jigi Malta ghal-sebgha tijiem jiffranka xi haga.
john cassar
Mar 4th 2010, 18:13
This story never stops the hoteliers dictate the government what to do. Unfortunately always giving in. Another tax added on to all those arriving in Malta, the government cannot tax those coming in to Malta only it will not be fair on them, how can he tell if they are coming over on holiday or just visiting family, therefore are Maltese people having to pay when entering their own country be it returning back from holidays . business trips or medical trips
Antoine Tanti
Mar 4th 2010, 18:11
They probably meant ECHO-TAX, because the word tax keeps echoing every day, every hour, every other minute. GONZI GIVE US A BREAK.
Joseph ( Joe) Grima
Mar 4th 2010, 18:05
@ John Dimech. Int tahseb li meta ggieghel turist ihallas 3 euro 50 talli rifes pajjizna hija soluzzjoni? Kemm ma taf xejn. Malli l-gazzetti nglizi li jispecjalizzaw fit turizmu jaqbduha din l-ahbar, Malta titlef lill dawk li kienu qed jahsbuha li jigu hawn bl-eluf. Damarco huwa fula maqsuma mal prim ministru tieghu. Ferghha mejta minn sigra li lanqas l-gheruq taghha ma ghadhom jinhassu. U miskina L'MHRA. Xi triduha taghmel miskina?.
lino scicluna
Mar 4th 2010, 18:04
The mind boggles. Definitely on a suicide mission. The more help the hotels get, the less they feel responsible. My wife and I started in three star hotels way back in 1995 coming to Malta as much as three times a year, previous to that we rented apartments. Slowly the prices rose and the service and infrastructure declined pushing us further up through to five star, and down to one trip a year. Last year the asking price for a five star hotel was not acceptable as good value. Now I suppose that a few people will tell me that we do not have to come to Malta. repeat that enough times and tourists are sure to heed the advise!
Joseph V. Grech
Mar 4th 2010, 18:02
Well done all round!
Very good initiatives indeed.
laurence schembri
Mar 4th 2010, 17:27
Paul Kew...Scandalous? Find me a man in this Administration that know the meaning of the word. Somehow they are €4 milion short somewhere,so out come this eco-this and eco- that contribution, if you ask what this `eco-` means, you`ll never get an answer. it`s the buzzword of this Government.
A Borg
Mar 4th 2010, 17:20
"Welcome to Malta. €3.50 please."
How romantic & idyllic!
Tony Borg
Mar 4th 2010, 17:14
@ Ian Fenech
"I guess after all the years of subsidising the hotels, the hotels owe the government some help."
I am taking that you were being sarcastic in stating the above.
N.Lawrence
Mar 4th 2010, 16:34
Adding to Tony Borg's observations- if the "tourists" are charged on their tickets at purchase, or the airport(tax), what is to differentiate people staying at hotels and friends or members of local families staying at private residences.
Mario deMarco, kindly elucidate.
Alan Vella
Mar 4th 2010, 16:32
The government bent over backwards to the MHRA desires as per standard procedure.
So, there we go: Yet another new tax, to enhance our competitiveness.
I wonder if illegal immigrants will have to pay that too. Oooo... now that's a taboo and I'm hitting under the belt, right?
I hope that they will not collect it at the airport ...like they do in Venezuela, and such places.
N.Calleja
Mar 4th 2010, 16:17
Through hard fought discussions the government and MHRA have come to an agreement that will alliavate the bills on hotel owners. This is the way to obtain much needed help and not through irresponsable protests and insult hurling, Mr Zarb and Mr Bencini!! When are you going to learn to discuss and not protest? The meagre eco-contribution will not hurt any tourist but will serve to help the industry!
Richard Hubbard
Mar 4th 2010, 16:14
I and my wife are regular visitors to malta over 25 years at least twice a year, I feel like it will be like paying to enter a theme park, will this money be taken at the airport or the Hotel or by the Holiday company.
I am appalled at this tax on tourism and my visiting your country considering the amount of money spent by us which I in no way begrudge except of course this tax.
I seriously feel this will blight tourism as we already have to pay a tax to leave the UK and unless I am wrong I do not know of any other country that charges an entrance fee, add to that Malta Direct are taxing the customer every way they can with add on charges and then charging more than in the brochure for people booking later and you will have a problem in the shrinking tourist market, just look at the situation in Greece and Cyprus they got greedy and their tourist market has had the bottom drop out of it.
If Brits do not travel the world feels it.
danny doughty
Mar 4th 2010, 16:10
I love the comments already on here about sugar coating and killing the golden goose...... now my comments....
I think your administration is forgetting that I pay a green tax on my air ticket, I pay a green tax on the fuel I buy for my vehicles in my own country, I pay a green tax to have my bins emptied, NOW I want to come on holiday (which I do to Malta twice a year!) I have to pay another green tax to have fun! Do me a favour Gonzi - do what all prime ministers in Europe are doing now - stick your head in the sand even further than it already is and don't listen to the honest men and women in Europe who are saying enough is enough....... it will come back and bite you all....
Paul Kew
Mar 4th 2010, 16:02
Scandalous. Why are the tourists who spend good money in coming to Malta having to pay an Eco tax. Not Fair. We spend plenty whist we are there.
Saviour Sam Agius
Mar 4th 2010, 15:45
How will they differentiate between who's a tourist and who's not?
Ian Fenech
Mar 4th 2010, 15:36
@Tony Borg
Mr Borg it is only after much complaining to the minister that we do not work for the tax department, that they have deceided to remove the bed tax. .( I work in tourism but not for a hotel).
I guess after all the years of subsidising the hotels, the hotels owe the government some help.
If you ask me the government is trying to recuperate the money it has lost be removing the airport tax we used to have to pay when we went abroad.
joe falzon
Mar 4th 2010, 15:00
better for the tourist money-wise but the word 'contribution' is misleading as it connotates giving voluntarily --- call it an eco-tax!
Aldrin Micallef
Mar 4th 2010, 14:24
Can anyone explain what exactly is "eco" about this tax?
laurence schembri
Mar 4th 2010, 14:21
So now we are going to tax the people (tourists) that puts the butter on our bread.
Dying for tomorrow to see what other dream our Onorevoli will come up with.
No I`m not going to mention the E&W tarrifs.
Kevin Jackson
Mar 4th 2010, 13:58
The Balarics tried this a number of years ago, tourists got stung on arrival and the money dissappeared. Tax dropped as unworkable. As a regular visitor to Malta, and as Malta is wanting tourists to come, don't drive us away by taxing us to come.
Dominic Vella
Mar 4th 2010, 13:54
Tourism is one of our biggest exports and so this new tax on tourists is an export tax. Crazy. If the government is really giving all the money back to hotels, why get involved at all? Any state by definition is bureaucratic and wasteful in collecting and redistributing the money. If it is in a hotel's interest to upgrade their facilities, then let them keep the 3,50 per tourist and use the money to invest themselves where commercially viable. Blunt tools like subsidies see misallocation of investment towards pet projects of politicians.
John Dimech
Mar 4th 2010, 13:37
qed tara Ton kif isiru l-affarijiet
ghandek problema .... tiddiskuti madwar mejda u ssib soluzzjoni .... u MHUX TNIZZEL IN-NIES FIT-TOROQ, biex tidher helu....
Peter Murray
Mar 4th 2010, 13:22
You can sugar-coat it any which way and call it what you may it nevertheless is still a tax on our lifeblood-the Tourist or visitor to Malta.This grandiose newly titled taxation masquerading as an eco contribution now extracts 7 times more than the crass bed tax from our most prized contributor to our financial health and well being.Stop trying to kill the goose laying the golden eggs!
Anthony Mizzi
Mar 4th 2010, 13:21
Sounds nicer, though I had always thought or had the perception that a "contribution' was something voluntary like a voluntary gift (as of money or service or ideas) made to some worthwhile cause.
Tony Borg
Mar 4th 2010, 13:15
"The 50c bed tax is being shelved and replaced with a €3.50 eco-contribution per tourist payable upon arrival, irrespective of the length of stay, Parliamentary Secretary Mario de Marco announced this morning."
Who is going to collect this tax? Is it going to be collected at the airport or at the hotel? If it is going to be collected at the hotel....what will be the situation regarding a guest who decided to stay in more then one hotel during his stay...say 2 nights in Sliema, 2 nights in Bugibba and 2 nights in Gozo? Will they have to pay 3 times?
Also are tourists going to be informed before they get here that they have to pay this tax? What if they refuse to pay it shall we refuse to check them in? That will be a great promotion for Malta!
Fabien Sant Fournier
Mar 4th 2010, 13:14
I applaud the initiates which resulted in the FR base & new routes. However charging an eco tax and having the proceeds go into expanding new routes is a bit unethical!
P Pace
Mar 4th 2010, 13:05
taxing our life line to death.
Why do tourist hae to pay an eco-contribution? the mess in the environment was created by Maltese