Retain investment in tourism sector, MHRA tells government

The Malta Hotels and Restaurants Association has insisted government safeguard investment in the tourism sector, in light of projected budget cuts.

“Whereas MHRA recognizes government’s challenges to save on expenditure as it continues to subsidise electricity and fuel costs, it is important that investment in the tourism sector is safeguarded in order to ensure that our economy remains sustainable,” it said.

Reports have suggested that government is planning to freeze expenditure on several large infrastructural projects entirely funded by national funds. One of these projects is the new campus at Smart City for the tourism school. On Monday, the Association of Catering Establishments warned that shelving the ITS project would be a "huge blow" to the industry.

The MHRA said tourism’s cumulative contribution to the country’s GDP is 25%, and accordingly this “critical economic sector” needs to be sustained through continuous recurrent and capital investment.

“This includes more investment in marketing, infrastructure, public cleanliness and maintenance, training and education, including the new Institute for Tourism Studies campus earmarked to be constructed at Smart City,” the MHRA said. “Tourism for the Maltese economy remains a very critical sector and we cannot afford that any international economic dynamic impacts negatively the further sustainable development of what is our economic lifeblood,” it stressed.