MHRA president Kevin Decesare complained today that the tourism product's ‘basic fundamentals' such as cleanliness and noise pollution were not being addressed.

"I hope that one day, those in power will get on with it," Mr Decesare said at a meeting with Labour leader Joseph Muscat.

Mr Decesare said the tourism industry was still in difficult times with occupancy levels and room rates down.

He reiterated the association's call for lower VAT rates on restaurant services in order to improve competitiveness and employment levels, and said a study was being made on the consequences of such a reduction.

Dr Muscat said he agreed that these were difficult times but said one should not be discouraged. All should work together to stop uncertainty. The country needed to look beyond numbers and at injecting more money into the economy because it would generate positive results.

He reiterated Labour's support to reducing VAT on restaurants, saying this could be a stimulus to the industry, especially as restaurants had committed themselves to passing on the reduction to consumers.

The Labour leader said the PL would continue to call for a ceiling on tariffs and fuel and a freeze on administrative fees at 2009 levels.

The PL agreed with Gozo being declared as one whole tourism zone but he hoped that businesses in certain localities in Gozo which were currently not considered as being tourist zones would not be made to pay MTA contributions.