The government should set a target for tourist arrivals for the coming year because growth in tourism leads to national economic growth, according to the Malta Hotels and Restaurants Association.
“This will allow for a more comprehensive assessment on the effectiveness of government policies on what remains critical for the success of the industry: accessibility and competiveness.”
The government should also draw up a contingency plan that could serve as a fallback position in case Europe experiences another recession.
“Any substantial drops in tourist arrivals next year will have devastating effects – worse than those registered in 2009 in view of the substantial increases in operating costs since,” it said in reaction to the pre-Budget document.
“The opposite is, however, also true, as positive results in tourist arrivals will emerge as the unique solution available today as an economic tool to steer the national economy away from tomorrow’s economic storms.”
In its proposals, MHRA said despite international economic and political turmoil, the tourism industry in Malta performed well last year compared to other EU member states.
“Such achievement, however, must not be viewed as an end in itself.”
MHRA urged the government to address Air Malta’s restructuring with a sense of urgency and from a “macroeconomic” level.
Air Malta must retain its role in the economy and a 50 per cent plus share of the tourism market, it said, while the restructuring process must also happen in tandem with initiatives that support low-cost carriers.
“MHRA is proposing that the Malta Tourism Authority is sufficiently empowered to increase seat capacity from underserved markets by providing it with additional funding to make up for the projected shortfall in seat capacity next year, while continuing to support Air Malta.”
Any additional funds given to MTA should be considered an investment which is immediately paid back in the form of public earnings and multiplier economic benefits, and not as an expense, MHRA argues.
MHRA appealed for the government to ensure that no form of additional taxes is imposed on hotels or restaurants.
“Failure to do so will only aggravate the operations of business and possibly endanger jobs.”
As an alternative to taxes, MHRA is urging the government to seek increased public revenues by addressing issues like unlicensed tourist accommodation.