Disagreement with operators has forced the government to postpone the introduction of a new tourism tax, the Times of Malta has learnt.
The 50c nightly eco levy announced in the last Budget was meant to come into effect next April but there is yet no agreement with operators, particularly with the Malta Hotels and Restaurants Association, on how its collection will be done.
A Tourism Ministry spokeswoman confirmed that, although the new tax will still be theoretically rolled out at the beginning of next month, the money would not start being collected before June.
She said a technical committee comprising tourism operators was still defining the methodology for the introduction of the environment contribution.
“The model will still be launched on April 1 while the collection of the contribution will commence on June 1 to further ensure that the industry is geared up for this development. Information sessions will also be [organised] by the Tourism Ministry with all the sectors of the industry,” the spokeswoman said.
The introduction is no longer tenable
But for MHRA president Tony Zahra, its introduction was “not tenable” because there was no agreement on how the levy would be collected.
“The MHRA has had innumerable meetings with the government on this matter, the latest being held only last Friday, but, to date, we are still expecting formal feedback from the government. Since there is no clear direction on the collection method, we have already told the government that, at this point, the introduction of the environment contribution on April 1, as was originally communicated in the Budget speech, is no longer tenable,” Mr Zahra told the Times of Malta when contacted.
He said the association had proposed various options for consideration to identify an optimal method for an efficient collection method “based on the premise that the cost of collection and to oversee the system will not eat into a considerable part of the contributions”.
He stressed the importance that the collection method did not burden those collecting it and that it had to be paid by all stakeholders offering accommodation services to tourists, not just through hotels, to ensure a level playing field in the industry.
He also insisted that the contribution be paid by all tourists and that all the money raised would be “ring-fenced into a fund” and administered through a private-public partnership co-led by the MHRA to spearhead product embellishment projects across tourism zones.
Mr Zahra said the MHRA was not prepared to accept that enforcement took place “on a selective basis as it is happening at present”. He noted unlicensed and unregulated operators were “not only distorting market prices but also jeopardising quality product and service standards”.
The ministry spokeswoman said the contribution would be allocated to the Foundation for Tourism Zone Development whose main objective was to ensure an effective upkeep and maintenance of the overall tourism product.
With regard to unlicensed accommodation, she said the government was “taking all the necessary measures to curb” them.
Speaking in Parliament last month, Tourism Minister Edward Zammit Lewis said the tax, capped at €5 per stay, was expected to generate about €6 million a year.