‘Cumulative increase in prices to deliver a blow to tourism sector’ - Philip Fenech

Increases in tax on spirits of 13% and even the increase of 1c per 25cl of beer are increasing the overall prices of holidaying in Malta at a time when austerity measures are being placed on other countries in Europe decreasing their disposable income, Fenech said.

Fenech argued that at a time like this it is important for Malta to at lease keep the same prices and not to increase prices of tourism in order to attract tourists who have lower levels of disposable income.

"An increase in the price of fuel affects everything and everyone, no less the tourism and increases our costs and therefore prices further still. Tourism has been good this year but this does not necessarily reflect that it will be good in the year to come due to lower levels of disposable income in other European countries," Fenech said.

"The cumulative increase in prices is making Malta less competitive in the tourist market."

On a more positive note a sizable investment was put aside for the industry of tourism; a good budget was put aside for the MTA for a much-needed marketing campaign, there is a scheme for assistance to businesses for the tourism sector, another scheme for staff training, investment in historical sites and embellishment of tourist areas, Fenech said.