€2.5m in grant scheme for tourism-related investments

Tourism started to recuperate in the second quarter of the year - in keeping with the predictions of the government and the Malta Hotels and Restaurants Association, Tourism and Culture Minister Francis Zammit Dimech said yesterday.

According to Malta International Airport figures, 570,865 passengers passed through the airport in the first six months of the year - 20,662 (3.8 per cent) more than in the same period the previous year.

National Statistics Office figures show a marginal increase of 0.3 per cent in the number of tourists who left Malta - from 470,138 to 471,407 - in the first six months of the year.

Even revenue from tourism was on the increase, Dr Zammit Dimech said. June registered an 8.1 per cent increase in the number of tourists who left Malta and an increase of six per cent in tourism revenue - from Lm41.9 million in June 2003 to Lm44.4 million in June 2004.

Dr Zammit Dimech was speaking at the launch of the call for project submissions for the Grant Scheme for Tourism Enterprises, which would see private sector tourism enterprises benefit from x2.5 million (just over Lm1 million) for tourism-related investments.

The scheme is part of the Structural Funds Programme 2004-2006 - Objective 1, European Regional Development Fund, Dr Zammit Dimech explained, highlighting that, thanks to the EU and under the auspices of the Malta Tourism Authority, the tourism sector would be receiving substantial financial assistance.

The scheme is aimed at increasing the competitiveness of tourism service providers in line with the objectives of the Structural Funds, Dr Zammit Dimech said.

The 2004-2006 budget of a total value of x2.5 million would be allocated to private, tourism-related companies with the aim of directly influencing private sector investment and pushing the tourism sector to be more sustainable in line with existing tourism policies.

"The objective of the scheme is to provide assistance to tourism enterprises in investment areas that would lead to greater profitability through the sustainable reductions of operational costs, leading to the general upgrading of the tourism product and restructuring of Malta's tourism destination offer," the minister explained.

The target beneficiaries of the scheme are tourism operators and those closely linked to the industry, including serviced tourist accommodation establishments, farmhouses, catering establishments, English language schools, private tourism training centres and institutions, diving operators, private museums and tourist attractions and incoming travel operators.

They are eligible for assistance only if they prove they are licensed to operate in their respective fields, Dr Zammit Dimech said.

These companies can seek assistance in investment projects in four areas: environmental initiatives; the upgrading of accessibility facilities for travellers with mobility problems; the upgrading of infrastructure, immovable equipment and IT systems; and marketing initiatives, including participation in international fairs.

The Grant Scheme would be financing 60 per cent of the costs of approved projects, while the remaining 40 per cent of the total budget consists of the private sector contribution.

The maximum project value per enterprise is Lm65,000, with the minimum threshold established for the projects being Lm500.

The Grant Scheme is being led by the MTA Strategic Planning and Research Division in coordination with the EU Affairs Directorate of the Tourism and Culture Ministry.

The first applications must be submitted to the division by September 30, with other application dates being opened every quarter.

Applications can soon be downloaded from the MTA website, where more information and detailed guidance notes on the Grant Scheme are also available.

www.mta.com.mt