The hotels and restaurants association has commended Malta’s positive economic and employment growth rates but is challenging the sustainability of these achievements in the long-run, focusing instead on the need for economic development.

The MHRA yesterday presented a copy of its pre-budget document, ‘Beyond Growth, the Role of Tourism, Manufacturing and Financial Services for Economic Development Vision 2030’, to Opposition leader Simon Busuttil.

‘Beyond Growth’ seeks to shift the debate from economic growth to economic development, which includes the aspirations of society in the economic, social and political fields.

The document says compared to other European countries, the Maltese economy is performing well, with robust economic growth rates and low unemployment although the association recognises that not everybody’s relative purchasing power is improving and some workers are experiencing a relative decline in their wages and conditions.

Economy is performing well

However important economic growth is, the MHRA says Malta should start honing its national strategies and economic policy to move on to economic development.

MHRA urges the government to gear the budget actions towards economic development. Key recommendations in the document are highlighted at both macro and micro levels, including government and political support, continuous development of the human capital, investment in infrastructure, improved access to credit and better accessibility.

In his reaction, Dr Busuttil dwelt on the future of Air Malta, the impact of the cost of energy and fuels, and security in the country, particularly in view of the visa and residence permit abuses.