MHRA wants official guidelines for restaurant sector

The Malta Hotels and Restaurants Association wants clear guidelines and a policy direction for the restaurant sector, MHRA president George Micallef told The Times Business, including the possibility of establishing whether there should be a limit in the number of restaurants allowed to operate in particular areas.

“The MHRA is having talks with Tourism Parliamentary Secretary Mario de Marco and the Malta Tourism Authority to take stock of the situation in the restaurant sector, formulate a policy and decide on an action plan and strategy for this very important sector,” Mr Micallef said.

He added: “Tourism in Malta is changing and we have a different tourist profile. For example, the number of tourists from Spain is clearly on the increase and Spanish tourists, unlike their counterparts from the UK, like to eat very late in the evening. They should certainly be catered for.”

Mr Micallef said the MHRA wanted the Malta Tourism Authority to draw up a policy for the restaurant sector as “it has the resources” to do so, and the Association will be providing the Authority with all its information on this sector, including the findings of a survey it commissioned on restaurants in Malta and Gozo.

“We need to establish, for example, whether there should be a limit on the number of restaurants that can operate in particular localities, we well as whether we should have a say in what type of restaurants are needed in certain areas,” he said.

“What is needed is a very clear picture of the restaurant sector, which is why we commissioned a study, and this should help everyone determine the way forward.”

The MHRA study, a summary of which has been seen by The Times Business, shows that the restaurant sector employs 2.5 per cent of the workforce, which is divided into 1,845 males and 1,020 females. 14.9 per cent of people working in this sector are self-employed, while 85.12 per cent are employees.

The restaurant share of the total economy’s gross value added is 1.8 per cent, while 60 per cent of the €175 million spent in restaurants in 2008 came from Maltese residents. The tourist share of this figure increased in 2009 and 2010 but official statistics have not yet been published.

The total tax revenue from the restaurant sector is estimated at €62.7 million or 3.1 per cent of the total tax revenue. 71.7 per cent or €45 million of the total tax revenue generated is from VAT.

Compared to the Italians, Greeks, Cypriots and Spaniards, Maltese households spend the least (about one to two percentage points less) on restaurants out of their total expenditure.

With the exception of Italy, restaurant inflation rates in Malta for the first half of the past decade (2001-2005) do not exceed those recorded for Spain, Cyprus and Greece.

The Maltese restaurant average inflation rate between 2006 and 2010 surpassed both the EU and the other Mediterranean member states’ inflation rates.

Compared to other Mediterranean member states, Maltese restaurants’ cost base in relation to domestic wages is the highest, while prices in relation to wages are the lowest (except for Cyprus which has the same restaurant price-to-wage ratio as in Malta).

There are 1,115 licensed restaurants (including snack bars) in Malta and Gozo.