The budget aims at a consolidation of public finances and economic growth and sets some ambitious growth targets, but it also increases government spending, the Malta Hotels and Restaurants Association said in its reaction.

The MHRA acknowledged that the government was aiming get the deficit to more manageable levels without disrupting the current economic pace and without burdening industry with additional taxes or expenses, while introducing social benefits to help different strata of the society.

It said that the additional €1 million allocated to Malta Tourism Authority would not be sufficient to meet the economic challenges and make up for the likely shortfall the industry would face next year.

The MHRA saw the €20 million allocated to Air Malta as an important signal and commitment by the government to support the future of the airline. It agreed that the restructuring process could not remain pending indefinitely, as this was negatively affecting tourism prospects.

It acknowledged that the sector was not burdened with additional taxes or charges and said it was also pleased to see that the government is looking at ways to control the inflation rate next year.

It welcomed the introduction of incentives that would small businesses and the scheme aimed at high volume energy users linked to tax credits.

It noted that a €6.5 million fund allocated for tourism zones this year did not seem to be reallocated this year. It said it was also disappointed that the government again did not refer to the problem of unlicensed accommodation, thereby encouraging illicit trading.