The controversial Corinthia project in St George’s Bay is not about building a new hotel, but part of a giant leap in the tourism sector from which everyone would benefit, Prime Minister Joseph Muscat said on Sunday.
“This year we estimate that Malta shall attract about three million tourists. How more can we handle? We need to start focusing on attracting big spenders,” Dr Muscat said.
Addressing a political activity in Żebbuġ, he insisted that it was an illusion thinking that government could press “pause button” on the economy.
Throughout his address he reiterated that Malta had come to a crossroad. “We either opt for the status quo, or else strive to make the next giant leap,” he said.
Dr Muscat insisted that Malta’s present infrastructure had reached its limit and would not be able to cater for further economic growth.
“This leap brings about risks and sacrifices, but also huge rewards. This choice will become even more pronounced as time goes by,” he said.
'The future is high-end'
Citing the case of tourism, he said that the way forward was to cater for those who spend €5,000 per night rather than price-sensitive tourists as the current model. In this respect he said that Malta lacked certain type of high-end facilities where such people could spend their money.
He said that investments like the one Corinthia wants and which is yet to be approved by parliament, would make it possible for the Maltese to earn a living from tourism, as they would lead to higher wages. On the other hand he said refusing such projects, would mean having minimum wage jobs which were only attracting foreigners.
According to The Sunday Times of Malta, the price in the draft deed for this plot of land measuring 61,000 square metres was of €17 million, even though its value on the market was of about €700 million.
Referring to the controversy over the price at which this land was being given to the Corinthia Group, the Prime Minister said the Opposition had no credibility on the matter.
He reminded his audience that the Nationalist government had sold Smart City at just €1.75 per square metre, and then pointed out that in 2014 the PN was in favour of the Corinthia project.
“Since, then we have raised the price even higher, and now they are against it,” Dr Muscat said.
“This is not about a hotel, and whoever thinks so lacks vision. This is about where we want to go as a country,” he said.
Blockchain criticism betrays PN's real feelings
The Prime Minister also referred to the closure of a blockchain company a few days ago, saying this had exposed the PN’s true colours.
While noting that this was the only one to go out of businesses out of 259 applications received since November, he said that the manner in which the Opposition pounced on the closure spoke volumes. It betrayed what the PN had said before, when it welcomed the start of the blockchain industry, the Prime Minister said.
'Joseph, stay'
The political activity was also addressed by former Tourism Minister Edward Zammit Lewis who once again appeal to Dr Muscat to reconsider his decision of resigning during this legislature.
“Our challenge after next May’s elections is to persuade Joseph to remain until the next general election,” he said.