It is said that politics is the art of persuasion. Very true, but certainly no easy task. Persuading all stakeholders is not always possible and, when it cannot be achieved, then it’s time to responsibly move on in the best interest of the nation. This is important because managing an economy is far from easy and a government cannot get held up on one single matter for an unreasonable period of time.

Over the past weeks, the proposed Individual Investor Programme hit not only the national but also the international headlines and not necessarily for the right reasons. An idea with great potential to make a positive difference to the public coffers unfortunately ended a political controversy.

The opinion expressed by the European Parliament on the matter was expected and, as events unfolded, the MHRA welcomed the talks between the government and the European Commission.

Following a meeting with the Prime Minister, it was positive to note that the social partners are all convinced about the benefits that Malta can obtain in future years. But, at this stage, maybe more than ever before, it is really time to move on and decide on the next steps forward.

The IIP needs to get implemented diligently but without further delays as we have high expectations on the return it can generate and the way this will be distributed throughout the economy. As one of the MCESD partners, we have submitted our proposals on how the fund created should be utilised and we now await the government’s feedback.

To keep winning, however, Malta cannot afford to stand still and rely only on the potential benefits the IIP could bring us, good as these may be. So what are the steps ahead?

The MHRA has always been consistent in its stance as we have repeatedly insisted with successive governments that what our country really requires is a wide spectrum of innovative ideas on how the economy can become more competitive so our standard of living can improve. Beyond any rhetoric, this is ultimately the only economic and social recipe that we believe will lead to new business opportunities, job creation and, hence, sustainable prosperity for all.

On the tourism front, we remain seriously concerned that our industry is facing very grim, long-term sustainable challenges and, yet, our plight is still not being fully recognised by the government. We recognise that a lot has been done and is still being done to increase connectivity to our islands and commend the joint efforts being made by the Ministry for Tourism, the Malta Tourism Authority, Malta International Airport, Air Malta and other legacy and low-cost airlines on this front.

Indeed, the MHRA is confident that this year will be a promising one when one takes into account the number of arrivals that are being forecast. But despite the positive contribution this volume is expected to make towards the industry’s sustainability, it is still not going to be enough.

Costs remain on the high side and increasing day by day, jeopardising our competitiveness in a highly dynamic and price-sensitive international market.

We still believe that adjusting VAT back from seven per cent to five per cent in the hotel sector would provide a notable injection to boost our industry to further prosperity, which, in turn, would lead to general and wider economic growth. But this is not an end in itself; it is a means to an end, one that will help refresh our product.

The MHRA is confident that we havethe structures and resources to turn Malta into an all-year round tourist destination while, at the same time, benefiting the local community.

Our vision is very realistic but, though we are near, we are still so far away. Rather than discussing why we have not achieved this goal, the focus must be on the action that needs to be taken.

We need to craft a ‘product Malta’ that assures long-term sustainability for the tourism industry. Why not project Malta as a centre of excellence for well-being, supported by the best hospitality service the Mediterranean region is renowned for?

In whichever direction we go, we need cleaner surroundings and a better maintained infrastructure and, accordingly, have high expectations on the newly-set up tourism zone committees.

We need better managed transport systems and this includes public transport, which plays such a critical role in the tourism system.

We need more innovative ideas and events to be held during the winter and shoulder months with a view to enriching the experience for tourists visiting during this period.

Also, we need to balance out the need for additional accommodation with sustainable objectives.

We need to craft a ‘product Malta’ that assures long-term sustainability for the tourism industry

Our vision is to see tourism growing and spreading further across our villages and other regions, including Gozo. The MHRA believes that more can be done to stimulate tourism by further developing specific niche markets such as sport, religious tourism, conventions and the film industry.

We also wish to see Malta spearhead the discussion fora among Mediterranean countries on how to motivate cross-selling with a view to being more relevant to, among others, the emerging BRICS countries.

Restaurants need to be further supported to improve their quality of service and product. Let’s cut down bureaucracy so that our members can better focus their energies in wealth creation rather than running after papers from one department to another.

We are eager to see a newly-revamped ITS that prepares professionals to resource our industry at its best, reflecting the latest trends in the industry.

Our hospitality sector needs the much-awaited cheaper rates for energy and utilities to help us survive the economic challenges. The MHRA placed this matter high on the national agenda before the last general election and will keep following it till it is realised.

Furthermore, we need to have a clear strategy set against clear performance indicators, with a view to turning rhetoric into concrete action. As the old maxim goes, what cannot be measured cannot be managed.

Doing nothing is not an option, neither for the investor nor for the government, in an industry that represents 30 per cent of GDP and 35 per cent of the government’s cumulative revenue.

As always, we will make our voice heard. The MHRA’s call to successive governments to invest more in the tourism industry to improve sustainability remains valid more than ever.

The MHRA will definitely not stand still and stare as events evolve in this country but will be there, in the forefront, offering concrete solutions, providing unequivocal support to innovative ideas and pushing for more tangible and sustainable results. Above all, we will do this by being constructive because, ultimately, we believe this is what will truly benefit the country most.

Paul Bugeja is president of the Malta Hotels and Restaurants Association.