Hoteliers yesterday expressed their concern about the prospects for the last quarter of the year, especially in view of the world economic situation.

Speaking during a meeting with Labour leader Joseph Muscat, the president of the Malta Hotels and Restaurants Association, Kevin Decesare said the association was pleased with the results of the first six months of this year and slightly less pleased with the slower growth registered in the third quarter.

However, it was "extremely worried" about the prospects for the last quarter due to the uncertainty brought about by the world financial turmoil and economic slowdown.

Mr Decesare was critical of the manner in which projects were first implemented but then not maintained, citing the rehabilitation of the Paceville square as an example.

He said the square was done up five years ago and then had to be redone four years later due to lack of proper maintenance.

He said Malta's product had to be upgraded if the country wanted to continue giving its visitors a unique experience.

Bad publicity by word-of-mouth was worse than a lack of advertising, he said, adding that hoteliers had seen a decline in repeat business.

On his part, Dr Muscat stressed the importance of the tourism industry and underlined the need of Malta remaining competitive in an increasingly tough environment. Productivity was the key, he insisted.

He explained that his meeting with the MHRA was one in a series he was holding with constituted bodies to discuss their expectations of the MLP and to see what they expected from the forthcoming budget.

Dr Muscat said the country needed to maximise the returns from the investment it was making and had to ensure that visitors were receiving an excellent return for every euro they spent in Malta.

The Labour spokesman on tourism, Marie Louise Coleiro-Preca said tourism was a topmost priority for the party, adding that it was never and will never be used as a political football.