The Prime Minister is keeping his fingers crossed that the UK's austerity emergency Budget announced yesterday will not have a huge impact on Malta's tourism industry, which is heavily dependent on the British market.

"We hope these measures will not have a large effect on tourism because it is not only the UK but many other EU countries that are taking major steps to cut their budget deficits," Lawrence Gonzi said during a walkabout along the Buġibba promenade where he inspected the embellishment works.

Malta is slowly recovering from a dry spell in tourism with arrivals this year increasing by seven per cent even though operators are still a long way from recouping last year's massive losses, according to the Malta Hotels and Restaurants Association.

Nearly half a million British tourists visit Malta every year, accounting for about 35 per cent of the total tourist population in 2009. With the tough measures in yesterday's UK Budget this may change. However, Dr Gonzi pointed out that, in the long term, Malta would benefit from Britain's economic recovery.

The tour of the promenade started next to the perched beach, which is the second to meet the prestigious international Blue Flag status. However, the windy weather yesterday spoiled the water's cleanliness as natural debris and colourful plastic waste was washed in.

This did not hamper a friendly New Zealand couple who approached Dr Gonzi exclaiming how "absolutely lovely" Malta was and asked to have a picture with him.

Rural Affairs Minister George Pullicino jokingly teased Dr Gonzi, an avid Italy supporter, about their draw against New Zealand in the World Cup last Sunday.

The Buġibba works included among others street paving, drainage works, painting of boathouse façades, painting and maintenance work of railings and benches and the planting of flowers and trees. The locality is a prime tourist hub but it also has a Maltese population that explodes in the summer months to 60,000 from about 18,000.

The sprucing up started in February and the works were carried out by a committee that coordinated the efforts of different government agencies and the local council.

Mr Pullicino, responsible for public works, told Dr Gonzi the rocky coast next to the perched beach would be embellished by a water park, insisting it would be free.

At one point, Dr Gonzi turned to Mr Pullicino and suggested showers for bathers should be installed at the beach.

Tourism Parliamentary Secretary Mario de Marco said it was the government's intention to increase the number of Blue Flag beaches over the coming years.

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