The Tourism Ministry is at loggerheads with industry players over the introduction of a new ‘bed tax’, with many raising concerns that it was being rushed, the Times of Malta has learnt.
Tourism Minister Edward Zammit Lewis confirmed that yesterday he met with the Chamber of Commerce over the new 50c nightly eco-contribution levy, following criticism that he had not consulted enough with a large section of the industry.
Although Dr Zammit Lewis would not comment on what had been discussed during the meeting, this newspaper is informed that the talks focused on finding a compromise regarding concerns raised by the chamber members, with possible amendments to be discussed.
The implementation of the tax is seriously flawed and risks damaging the experience of the tourist and the industry
The contribution, announced in the last Budget, is capped at €5 per guest and expected to generate approximately €6 million to be used to improve the island’s tourism product.
Among those raising concerns over the new contribution are the Federated Association of Travel and Tourism Agents, the Federation of English Language Teaching Organisations, the Professional Diving Schools Association and the Malta Association of Hospitality Executives.
While not necessarily opposed to the contribution in principle, these organisations are calling for its introduction to be postponed until after the summer period.
Industry sources said the main issue with introducing the levy on June 1, as planned, was that accommodation prices had already been set several months ago via agreements with travel agents. It was not clear therefore who would foot the bill.
Concerns were also being raised about the “hasty” introduction, with industry sources saying they had not been given enough time to set up systems to collect and manage this new contribution.
It was also not clear how the introduction of the levy would impact alternative accommodation such as host families and those operating via Airbnb-style housing.
A chamber spokesman last week said concerns on the matter had been raised when the contribution was first announced but these had been “largely ignored”. “As a result, the implementation of the tax is seriously flawed and risks damaging the experience of the tourist and the industry,” the spokesman said.
Dr Zammit Lewis last week defended the government’s plans, saying he had held a lengthy public consultation process and several meetings with the Malta Hotels and Restaurants Association.