The additional €1 million allocated to the Malta Tourism Authority in the 2012 Budget will not be sufficient to meet next year’s challenges, according to the Malta Hotels and Restaurants Association.

“Tourism is one of the sectors that delivered, and which contributed to government earnings handsomely. Its value added for the economy is very significant and the MHRA expected that in these very particular circumstances the government would invest more to sustain the momentum of economic growth registered to date in tourism. The MHRA reiterates that additional funds afforded to MTA have to be considered as worthwhile investment which is immediately paid back in the form of government earnings,” it said.

The MHRA said the €20 million allocated to Air Malta was an important signal and commitment on the part of government to support the future of the national airline.

It added: “However as has been stated by the government, we can longer allow the restructuring process to remain pending indefinitely, as this uncertainly is negatively affecting tourism prospects. During the same budget period last year we were aspiring to see the process concluded by the end of the year, but a year on, this remains pending.”

The MHRA acknowledged the introduction of a number of incentives to help small businesses and welcomed the scheme aimed at high volume energy users linked to tax credits.

The MHRA noted that the fund of €6.5 million allocated to tourism zones this year, following the €5 million of the previous year, managed by the Rural Affairs Ministry, does not appear to be allocated this year. “This fund could see to the embellishment of important highly visited tourist areas, needing urgent investment such as in the case of Bugibba square, which the MHRA specifically referred to, amongst other areas, in its budget proposals,” it said.

It said it is disappointed to note that once again the government did not refer to the problem of unlicensed accommodation.