PM heaps praise on Island Hotels' €45 million investment

With an investment of over €45 million in the old Ħal Ferħ holiday complex, Island Hotels Group was leading the way in improving and offering a unique dimension to tourism, Prime Minister Lawrence Gonzi said yesterday.

The investment, which also includes increasing the group's workforce by 200 to over 1,200 employees, was a clear indication of the private sector's confidence in the tourism sector, Dr Gonzi said yesterday.

The Prime Minister was speaking during a flagship ceremony at the Ħal Ferħ complex, which was recently bought by the group following a public tender in March. The group was the sole bidder.

The group recently acquired the perpetual emphyteusis over a tract of land approximately 83,000 square metres in size next to the Radisson Blu Golden Sands Resort and Spa, along with shares in Ħal Ferh Company for around €12 million.

Dr Gonzi praised the group's plans for the area which, he said, would be converted into "a quality tourism zone offering yet another unique dimension to our diverse tourism offer".

The group intends to develop the site through its newly-established affiliate, The Heavenly Collection Ltd, in which its partners in Golden Sands Resort Ltd also have a 50 per cent stake.

The group will prepare detailed designs and plans in the coming months and should be in a position to start development and construction works by early 2011.

Dr Gonzi said the tourism industry suffered in a disproportionate way because of the recession.

The government was proactive in overcoming the effects of the recession on a number of fronts by, for example, helping out with the accessibility of new low-cost routes last winter and giving more funds to the Malta Tourism Authority, he added.