The Transport Ministry this afternoon said that the Malta Hotels and Restaurants Association had 'ignored the facts' when it said this morning that the new bus fares sent a message that tourists were there to be fleeced.
Transport Minister Austin Gatt said on Saturday that there would be different fares for residents and non-stories.
In a sharp reply, the ministry said: "The Malta Hotels and Restaurants Association cannot have in all seriousness considered the facts about the pricing for tourists in the reformed public transport service starting next July, when it stated that these prices ‘send the signal that tourists are for fleecing’.
"A tourist visiting Malta after next July will be charged a total of €12 for 7-days of unlimited travel anywhere in Malta, including the transfer to and from the airport. For the airport transfer alone services today already charge tourists more than €12 which means that when using half hourly services from the airport to all tourist destinations on the island in buses equipped for luggage space (which can be loaded for free) 7-days a week from 5.30am to 11pm, tourists will be paying less than they do today for their transfer and get unlimited free travel during their holiday to boot. At that rate it is not likely that tourists will feel fleeced at all," the ministry said.
The ministry added that tourists would be paying less for public transport in Malta than they would in their own countries or competing tourist destinations.
"Just because residents of Malta will be able to travel for less, it is not likely that tourists will feel that a €12 weekly ticket (or €2.60 for a day ticket) for unlimited transportation will amount to a rip off by any stretch of the definition of that term."
The ministry observed that the €12 price for the 7-day tickets was less than what was provided for in the tender (€14) which was then reduced during negotiations.
In meetings organised by the MHRA itself for hoteliers and restaurateurs during the tender process, the weekly price of €14 was deemed by all MHRA members present as perfectly reasonable and value for money for tourists.
"Now that the final cost to tourists will be less than was previously announced (rather than more), MHRA is making hysterical comments about “blows” to the industry. For clarity – and to avoid the confusion which the MHRA tries to make – the discount for residents of Malta does not discriminate against people who are not nationals of Malta and is therefore perfectly compatible with EU law.
"Much as an adult does not complain for paying more than a child when boarding a bus, a non-resident should not be expected to complain for paying more than a resident if the price charged to that non-resident is reasonable value for money.
The ministry said that what the MHRA had failed to comment about was how the quality of the service offered to tourists (and therefore the quality of the tourism product at large) would be massively improved when the reformed service was rolled out.
MHRA STATEMENT
Earlier in the day, the MHRA said that the announced higher bus fares for non-Malta ID card holders was yet another blow to the tourism industry.
The MHRA said this move followed very quickly on the heels of the government’s announcement to increase the VAT rate on hotel accommodation from five per cent to seven per cent.
“The MHRA strongly opposes the selective targeting of the tourist industry for increases in charges whether it is coming from the government or from a private company.
“The MHRA believes that if this measure is implemented it will cause tremendous damage to the industry, as it sends a clear message that tourists are there to be fleeced.”
The MHRA said that only last August, it had advised MHRA that according to the Attorney General, the agreement the government had reached with MHRA for the introduction of an eco-contribution, which would have been solely paid by tourists, could not be implemented, citing discrimination under EU regulations if applied exclusively to tourists (non Maltese ID holders) and not to Maltese ID holders. This was why the VAT was then raised, the government had subsequently said.
The parallels between the transport system and that of the proposed eco-contribution were obvious and the MHRA could not but help question this inconsistency.
All those who had the tourism industry at heart, had always warned against the fleecing of bona fide tourists and the repercussions this could cause.
“Ironically, in some instances this mal-practice involved bus drivers, amongst other service providers, and these were dealt with accordingly, and now government appears to be institutionalising this practice.
“The MHRA finds this decision discriminating and offensive to visitors. The MHRA is still struggling with coming to terms with the unexpected announcement of the increase of the VAT, which will exacerbate the problems in the market, and now has just learnt of this decision, which can only further hurt the tourism industry, whilst sending the wrong message to prospective visitors.”
The association said it could not understand why the government was singling out and continued to tax the tourism industry, at the risk of jeopardising its long term sustainability.
It called upon the government to reconsider this decision before any more harm was done to the industry.
COMMISSION TO LOOK INTO NEW FARES STRUCTURE
Meanwhile, a spokesman for the EU's Transport Commissioner said this evening that the European Commission would be looking into the new fares structure and seeking details from the Maltese government.
He stressed that the EU rules did not allow discrimination on the basis of nationality.