The editorial titled ‘Botched start to new tourism tax’ (March 15) was as timely as it was concerning. The Malta Hotels and Restaurants Association and the government mishandled the 50c eco contribution right from its birth. The idea of raising funds to provide a better product is admirable but rather shallow.

It is a pity the government was unable to implement this idea on its own and needed a shoulder to lean on. Over three years, the government has not invested much in tourist areas. Some localities are just overlooked by the government and local councils are either ignored or, worse still, allocated reduced finance.

So, up we come with this idea.

The projected €6 million revenue from this initiative for the largest industry in Malta, which employs thousands directly and indirectly and is a net contributor to the economy, appears a stupidity when compared to the Café Premier bailout.

When taking into consideration the scheme offered to monti hawkers to dispose of their licences and the deals connected to the Gaffarena land property exprioriation deal are an insult to the tourism industry because it shows that, in this case, no preparatory or groundwork was done.

November is always the best month when to start levying such a contribution because it would give hotels, host families and any other type of accommodation time to adjust rates accordingly.

The June date that has been set can cost hotels a lot of money because tour operators will not accept this levy charged to their clients who would have booked and already paid for their holiday. This means clients would not have been informed, nor would the charge have been calculated in the package holiday price.

The sales would have already been made and contracts negotiated and signed contracts, taking into account all taxes applicable at the time. Which means, a legal and/or commercial issue is about to emerge.

At the end of the day it is the accommodation provider who will suffer.

Why should language holidays, host families and Maltese clients of hotels in Malta and Gozo have to foot the bill? Have host families enquired about this with their agents?

At the end of the day it is the accommodation provider who will suffer

The MHRA does not represent all stakeholders in Malta. All stakeholders include everybody and we are responsible for everybody’s livelihood.

What is €6 million compared to a €3 billion budget? It is an irrelevant amount that mocks Labour’s pro-business approach.

Yet, the MHRA is in seventh heaven because it will co-manage the fund, which, it must be pointed out, is not accompanied by any public guidelines as to where the money will be spent. Will government procurement rules apply? Can this eco contribution rise in 2017, since no capping in subsequent years has been announced? The very same people backing the initiative had opposed this tax some years back but now things have changed. A change in government perhaps but not in tourism.

Hotel computer software does not adjust automatically to cater for such a contribution. Time to plan properly is of essence.

Will this tax be vatable?

Those under 18 years of age are exempt, therefore, those offering accommodation services must now also register the ages because most hotels charge adult rates for guests aged over 13.

Who is going to administer the scheme, make the necessary checks, do the cerification and accept payment? Into which fund will the money go to? What sort of expenses will be incurred? Will people be engaged to oversee the scheme, administer the revenue stream, issue calls for tenders, handle timeframes and all the red tape that seems to be on the rise, the works?

Accommodation providers, at least the licensed ones, need to wake up to what is going on and slowly creeping upon them. Large hotels may be looking at a €50,000 extra expense. Those that are not licensed should be monitored and licensed to ensure a level playing field.

While agreeing to a possible noble cause, albeit loaded with inconsistencies, I urge the government, which prides itself with being able to listen, to take the cue and to lead by example by planning out the whole act and then rolling it out on November 1.

Most service providers do not know what will hit them. Accommodation providers are now warned. They must ask operators or agents what they need to do when they welcome guests come June and ask them for extra money.

Robert Arrigo is PN spokesman for small businesses, the manufacturing sector, retail, the self-employed and cooperatives.