The strategies identified in the budget speech focus on the specific needs to take the economy to the next level, the Malta Hotels and Restaurants Association said this evening.

In a reaction to the Budget, the association noted that in its pre-budget document, it called on the government to gear its actions beyond economic growth and to start focusing on economic development initiatives.

It commended the government for its continued efforts to consolidate its fiscal position and the reduction in the fiscal deficit from 2.1 per cent of GDP in 2014 to 1.1 per cent in 2016.

It said the Budget acknowledged both short and long term economic needs by significantly setting the right foundations for a sustainable tourism model.

It welcomed the investment in a new Institute of Tourism Studies and the additional €1 million allocation to the MTA.

On the new tax on tourists to be introduced in April (a 50c per tourist per day up to a maximum of €5 per tourist will be impose), the MHRA said that, if managed well, this should not adversely impact tourists’ numbers to Malta.