A scheme subsidising loans to encourage hotels and restaurants to upgrade their establishments and offer new services has been launched.

The scheme was announced this morning by Finance Minister Tonio Fenech and Tourism Parliamentary Secretary Mario de Marco.

Mr Fenech stressed the importance of continuous investment in the sector and said that the scheme, to be administered by Malta Enterprise, consisted in a subsidy on the interest rate on loans of between one and three per cent.

A hotel could be given a subsidy on a maximum loan of €7 million and restaurants on a maximum loan of €500,000. The loans have to be taken by December 2013.

Enterprises which intend to make use of the facility should use the consultancy services of Malta Enterprise.

Dr de Marco said that the government was investing massively in the local tourism product. It had embarked on projects such as those of City Gate, St George’s Square, Mnajdra and Hagar Qim, St Anne Square the Qui Si Sana Promenade, as well as investment in infrastructure reflecting the government’s commitment.

Malta was also benefitting from €10 million in EU Structural Funds for 2007-2013, allocated for sustainable tourism projects.

Dr de Marco said that MTA research showed that five star hotels in Malta enjoyed a higher satisfaction rate that those in lower classes.

A total 91.1 per cent of tourists who stayed in five star accommodation in 2009 reported that the look of their hotel was good or very good while in the case of four, three and two star hotels the rate was 72.7, 56.8 and 49.6 per cent, respectively.