The budget is to raise funding to the Malta Tourism Authority to €26 million, up by €3.5 million over last year, Finance Minister Tonio Fenech told Parliament this evening.

The special allocation is being made to mitigate the effect of the current difficult situation in tourism source markets.

Host families will see their non-taxable amount rise to €3,500.

In view of the subsidies currently being given to low cost airlines, as from January 1, 2010 a tax of €0.50 per night will be levied for stays in hotels.

Mr Fenech said that another measure aimed at assisting tourism is embellishment of the coastal zones of St Paul’s Bay, Qawra and Sliema and the beaches of Għadira, Golden Bay, Ramla l-Ħamra, Sliema and Qawra. Moreover, the bastions will be restored over a seven-year period. For all this, €120 million are being allocated.