Tourism industry stakeholders have welcomed Monday's budget measures, particularly the record sum of Lm16.8 million (€39.1 million) allocated to the sector, with Lm10.5 million (€24.5 million) going to the Malta Tourism Authority to continue its work.
The money for the MTA would be poured into new routes for low-cost carriers and Malta's overseas marketing campaign.
The president of the Malta Hotels and Restaurants Association, Josef Formosa Gauci welcomed this allocation.
"We now need to make sure that the money for the marketing is spent properly," he said.
According to Mr Formosa Gauci, the MTA budget is Lm1 million (€2.32 million) more than last year's revised allocation.
He welcomed the extra Lm5 million (€11.6 million) allocated to improve the tourism product, including investment in the facilities of historical sites, the development of bays and the Bugibba project.
He said the importance of getting it right was now paramount. "Let us now make sure the projects start as soon as possible, so that they would be on line by next summer."
Generally, it was a budget of "continuity all round, and is going to leave the Maltese with more money in their pockets, which could also have a beneficial effect on the MHRA's restaurant members," Mr Formosa Gauci said.
With regard to the fact that the government stuck to its guns and did not revise the departure tax, despite threats of legal action from the EU, he pointed out that this tax was levied only on Maltese tourists leaving Malta and not on the tourism industry, so he did not feel it was such an important factor.
MTA chairman Sam Mifsud was "very happy" with the additional resources poured into the authority to be able to market and position Malta. It was a clear indication of the government's commitment towards the continuous improvement of the industry.
"The fact that more resources have been allocated towards the MTA's marketing effort overseas is also, in a way, a sign of approval of how it has been allocating its resources over the past year and of the results achieved therefrom.
"All in all, we cannot help but be satisfied with the 2008 budget in view of the investment made towards tourism," he said.
The funding, he added, would be aimed at advertising the country and assisting low-cost and legacy carriers.
Eden Leisure Group executive director and hotelier Kevin De Cesare, who sits on the council of the MHRA, described the budget as "good" and said the government was taking the industry very seriously in terms of its spend on marketing, low-cost carriers and the product. "But one thing I was hoping would be mentioned is the enforcement of existing laws, as well as enforcement regarding the way foreign students are misbehaving on our streets.
"It is bad for the image of the country and many tourists visiting Malta see this and go back with the impression that it is only geared for teenagers.
"They give us bad publicity, which is defeating the purpose of all the spend on marketing," Mr De Cesare said.