VAT increase on tourism will negatively affect Gozo - GTA

The two per cent increase in VAT on collective accommodation will have a negative effect on the already fragile Gozitan tourism industry, the Gozo Tourism Association said.

It said that while in Malta, the tourism sector was experiencing an increase of 12 per cent in arrivals as well as in bed nights, NSO regional statistics clearly showed that foreign arrivals in Gozo in 2010 went up by a marginal three per cent on 2009, resulting in a minimal two per cent increase in bed nights for 2010, when compared to the same period last year.

Recent statistics clearly indicated that with regards to tourism, Gozo was not reaping the same results as Malta. One also had to keep in mind that 2009 figures were lower than in 2008.

The increase in VAT, it said, would continue to have a negative impact on the Gozitan tourism industry. Furthermore, this measure would be introduced on next January 1, when contracting for the coming season had been carried out with tour operators months ago.

Through this measure, Destination Gozo, would also continue to lose on its competitiveness especially within the domestic market.

The GTA welcomed the introduction of one of its proposals, through the allocation of €500,000 to be specifically used for the marketing of Gozo as a distinct destination.

Other measures that were announced that wouldcontinue to enhance and strengthen the Gozitan tourism product, included the implementation of the Diving Master Plan, together with several infrastructural developments.