Labour pledges €30 million fund to improve restaurants' quality

A new Labour government will create a €30 million fund for restaurants to upgrade their products, Tourism Minister Ian Borg announced on Thursday.

Meanwhile, 50 cents of the eco-contribution paid by tourists per night, set to increase to €1.50 after June, will start going towards local councils’ budgets to mitigate the impact of tourism on their respective towns.

A new government will also invest in the Grand Harbour to improve its home porting services, allowing it to attract more luxury cruise liners.

The measures were announced during a press conference in St Julian’s, where Borg, alongside parliamentary secretary Alison Zerafa Civelli and Labour MP Cressida Galea, argued for the need to shift towards higher-spending tourists over the coming years.

Borg said Malta’s tourism offering had grown exponentially over the past decade, with tourism numbers this January “better than August 2012, the last summer with PN in government”.

Malta was now attracting tourists throughout the shoulder months, with increases in the number of tourists travelling to Malta, the length of their stay and their spending throughout their visit.

Borg said tourism will remain a “crucial economic niche” over the coming years, while focusing on “sustainability, with tourists that leave more money in our economy and respect our communities and history”.

To this end, a new government would continue to support tourism operators in their efforts to improve their products.

€30 million fund

A new €30 million fund would be created to help restaurants invest in their product, allowing them to renovate their premises and train their staff, Borg said.

Each restaurant will be eligible to receive a maximum grant of €300,000, he explained.

Tourism operators will also benefit from tax credits when renovating tourist accommodation and improving its quality.

Meanwhile, Zerafa Civelli said the government would be taking up a suggestion from local councils for part of the eco contribution to go directly towards the upkeep of their town.

In the future, 50 cents of the eco contribution will be given to local councils, in line with  “for the upkeep of their locality”.

This measure will apply as of July.

In July, the eco contribution will triple from the previous rate of 50 cents to €1.50.

Cruise liner industry

Galea said a new Labour government would work towards improving Malta’s cruise liner industry by improving the Grand Harbour’s home porting services.

Cruise liners which begin and end their journey in Malta typically provide greater economic benefits than those arriving in Malta for short-lived stays, she said.

By improving the Grand Harbour’s home porting offering, Malta will be better placed to attract luxury cruise liners to the island, she added.

Asked whether these measures are sufficient to alleviate many people's concerns that Malta welcomes too many tourists, Borg said he was "convinced that these are measures in the right direction".

"Our aim is to continue to grow, but not at the rate we have taken so far," he said. "The challenge is to grow in the direction of quality".

Borg also dismissed the suggestion that Labour's electoral campaign had barely touched upon the topic of global turmoil and the conflict in the Gulf, despite this being the self-declared reason behind an early election.

"We didn't fool people because the international situation has deteriorated since the election was called," he said.

"But we cannot present a doom and gloom programme. The stability we are offering in energy prices allows us to continue supporting our economy," he said.