A moratorium based on commonsense

As one looks back a few years, compares the situation then and now, and considers the points so strongly addressed by Din l-Art Helwa and other NGOs, now joined by MHRA, one finds pretty much the same equation. The question therefore is whether the same solutions apply.

Enough noise about the perils of over supply has been made to make the industry aware, and more than sufficient to put off anyone with half a thought about putting in well-earned money and venturing into tourism's conventional accommodation sector. It is therefore immaterial whether the government said yes or no to a moratorium, when the same effect has been achieved.

Hotel owners who hold permits for extensions or with pending applications would have gone into the pros and cons of their new investment and, given that the government has also extended the period for refurbishment and small extensions subsidies, one naturally defers to owners and their financial advisers' judgment.

A decade ago the dirigiste moratorium included exceptions dictated by the industry's more pressing needs. Today, if 50 per cent of what is in the pipeline comes through, then Malta, and possibly also Gozo, would have enough conventional five-, four- and three-star properties to service demand for at least the next 15 to 20 years, enough to deter the most sanguine owner of land, money and time to burn.

If, for the sake of argument, cabinet had looked kindly on a moratorium would it have applied to the conversion into boutique hotels of palazzos and ancient family homes in, say, Valletta or the Three Cities, similar to the exquisite Xara Palace at Mdina? Would not small-scale eco-tourism and agro-tourism accommodation also offer a wider choice and attract a different clientele?

So where is the clash when everyone has won? Martin Scicluna and Din l-Art Helwa should be happy for making the right noises for the wrong reasons. Winston J. Zahra and MHRA elated for making the wrong noises for the right reasons. Tourism Minister Francis Zammit Dimech should be pleased with MHRA's reaction. Congratulations to the cabinet for taking the correct decision. All four flashed the red light to the trade.

The end result: a moratorium based on common sense rather than a moratorium of commonsense.

PS: In January 2003, with less publicity, no wonder since I was competing with the final countdown to EU membership, I had taken the same road to the cabinet, with what was to be my last memo, alas relegated to the pending tray.

Concluded.