The Nationalist Party has proposed lowering the VAT rate for hotel services and restaurants to seven from 18%.

PN spokesman Peter Agius and candidate Ivan Castillo told a media conference in Gozo this was one of the main proposals from among 100 contained in the document 2 + 8 'A way forward to tourism recovery'. The document contains a series of measures designed to alleviate the reduced turnover in the tourism sector due to the pandemic.

The PN is also proposing a measure where the tax due is repaid over five years.

Agius explained that a VAT rate reduction is possible through derogations allowed by European directives. The reduced rate could spur renewed investment at a time when the tourism sector needs a sign of courage to return to pre-pandemic levels leading economic activity. "Only if we continue to invest will we be able to remain competitive," said Agius.

Castillo explained how investment in hotels helps diversify the Maltese tourist offer and the PN proposals also address direct support for hotel upgrades as well as the promotion of niche market hotels targeting particular sectors.

Castillo said the PN was also proposing how the government will be a main partner in targeted marketing with a proposed €25,000 reimbursement of the cost of marketing.

A new Nationalist government sees to it that there is a 'Standard of National Aesthetics' which promotes the gradual creation of picturesque urban areas that will give tourists visiting the Maltese islands a unique experience, he said.