Prudent leadership results in economic stability – Tonio Fenech

Finance Minister Tonio Fenech said that despite difficulties being faced, small businesses are still investing to expand and improve their product and services offered to Maltese and foreigners.

"This is a sign of economic stability because despite the problems being experienced in other countries, entrepreneurs are recognising the responsibility and prudence the government is using to lead the country, prudence which is translating into stability," Fenech said.

Hotel Valentina in St Julian's is investing more than €5.5 million in extension and upgrading and the number of employees will also be increased from eight to 25.

Fenech and Tourism Minister Mario de Marco said that the hotel had benefited from one of many government schemes available to businesses.

Fenech added: "This stability is translating into record results in the tourism industry, which once again achieved record levels in 2011. This was not a coincidence. This happened because we invested. We invested in low-cost airlines, we invested in Air Malta, and we invested in the local tourism product. But we could do this because we had financial flexibility after working carefully over the last few years."

The minister said that this was also a result of employment policies which can be seen in figures published this year by Eurostat which continue to confirm the creation of jobs in Malta where unemployment was reduced from 6.8% to 6.4% from November 2010 to November 2011, while the average unemployment rates in the Eurozone and European Union continued to increase.

Tourism Minister Mario de Marco said that the Valentina Hotel project would strengthen the tourism product offered by Malta.

"The government scheme strengthens competition in the tourism sector. The €10 million, co-financed by the EU, for sustainable tourism projects and the soft loans scheme which encourages efficient energy are just two of the schemes which can encourage investment in the tourism industry," de Marco said.