Alex Perici Calascione takes firm stand against TCN measures

Nationalist Party Deputy Leader Alex Perici Calascione declared his complete opposition to government's budget measures targeting third-country nationals.

Speaking during an interview on TVM’s Xtra hosted by Saviour Balzan, Perici Calascione said he disagreed with the measures, contrasting with the position of Opposition leader Alex Borg, who has so far avoided giving a clear answer on the measures.

Tourism Minister Jo Etienne Abela and Momentum Leader Mark Camilleri Gambin also participated in this week’s programme. 

The PN deputy leader argued that government's economic model has become overly dependent on foreign workers, despite the mounting pressure this dependence was placing on the country's infrastructure and society.

The situation is only made worse, he argued, by the fact that government had long been aware of, and chose to ignore, the consequences of such an economic model.

Perici Calascione was referring to an unpublished 300-page report authored by Finance Minister Clyde Caruana in 2018, which warned of the strain that Malta's dependence on foreign labour would place on infrastructure and public services.

Pressed by Balzan to clarify whether he opposed the measures targeting TCNs, Perici Calascione confirmed his position.

"Yes, and I am telling you why," he replied.

His unequivocal opposition contrasted with the position taken by PN leader Alex Borg, who has avoided giving a clear answer on whether he supports or opposes the measures.

On the other hand, Abela defended government's approach, arguing that Malta's strong labour market allows workers, including TCNs, to move between employers if they are being treated unfairly.

However, he expressed disappointment over the racial and xenophobic sentiment surrounding the debate.

“I am very disappointed that the interpretation of the measures became racial and xenophobic, which I completely condemn,” he said. “This was not government's intention.”

Camilleri Gambin added to criticism of the measures, arguing that government should not penalise foreign workers who have already established their lives in Malta.

He said increases in work permit fees could be justified for new arrivals, but questioned why workers already contributing to the economy should face additional financial burdens.

"We need to remember we are dealing with human beings. This is not just about numbers, it's about the lives of people we chose to bring to Malta," he said.

Camilleri Gambin argued that employers benefiting from Malta's dependence on foreign labour should shoulder a greater share of the associated infrastructure costs.

"Heavy-handed yes, but on who? Those who are suffering, or those who are benefitting most from this growth?" he asked.

‘Of course’ minister is worried on tourism projections

The discussion also turned to the country’s growing tourism industry, with Abela admitting that the prospect of seven million tourists visiting the country annually worries him, while Malta is expected to welcome a record 4.5 million tourists this year, generating an estimated €4 billion in revenue.

Balzan confronted the minister with projections that Malta could have 135,000 tourist beds once hotels and guesthouses currently in the pipeline are completed, potentially allowing the country to accommodate seven million visitors annually within the next three to four years.

"Of course it scares me," Abela admitted, although he argued that the projected increase in accommodation would not necessarily materialise.

However, Balzan questioned whether Malta's infrastructure could withstand even five-and-a-half or six million tourists, pointing to existing problems with electricity, water provision, drainage, and airport capacity.

Abela again defended government's investment in energy infrastructure, saying the latest budget allocated an unprecedented amount of funding to the sector.

He further explained that government's tourism strategy is aimed at reducing seasonality by distributing tourist arrivals more evenly throughout the year, rather than allowing demand to remain concentrated in the summer months.

He then staunchly rejected the proposal for a moratorium on new hotels presented by MHRA President Tony Zahra, arguing that it would be “the wrong step” if Malta wants to continue creating business.

Instead, the minister argued that government should introduce further regulatory adjustments, pointing to new rules governing short-term rentals as an example of this approach.

PN calls for national carrying capacity 

Perici Calascione argued that Malta has spent too many years measuring the success of its tourism industry solely through the number of visitors arriving on its shores.

He questioned government's long-term planning, pointing out that projections included in Malta Vision 2050 had anticipated 4.5 million tourists by 2035, a figure the country is already expected to reach this year.

"But in those nine years, government was planning to invest in tourist infrastructure. What went wrong?" he asked.

Perici Calascione insisted that Malta needs a national carrying capacity assessment to determine how much tourism the country can actually sustainably accommodate.

"It's not a question of a number. We need to start looking at what this country can carry. What are people struggling with? Where is the strain?"

He argued that investment should prioritise localities experiencing the greatest pressure from tourism, with more funding directed towards local councils.

The PN deputy leader also stressed that the quality of the tourist experience extended beyond hotels, pointing to the state of Malta's roads, pavements and public cleanliness.

"A hotel is one story, but what they find outside is another," he said.

Who will collect the eco-tax and where is it going?

The discussion then turned to government's decision to increase the eco-tax, with Perici Calascione criticising the measure's introduction without adequate consultation with tourism operators.

He argued that government needed to explain how the additional revenue would be spent, insisting that money collected through the tax should be reinvested into improving the tourism sector.

In particular, he said localities experiencing the greatest pressure from tourism, particularly short-lets, should benefit from the funds.

Camilleri Gambin, meanwhile, supported the eco-tax increase but called for the revenue to be ring-fenced for environmental purposes and local councils.

He then questioned conflicting explanations about how the money would be spent, pointing to statements suggesting it would fund infrastructure and the government's super bonus. Originally, he pointed out, the eco-tax was intended to be reinvested in the localities where it was collected.

Furthermore, Camilleri Gambin raised concerns over what he described as "a secret agreement" governing the collection of the tax, calling for the contract to be made public.

He maintained that a public authority should collect the tax, or alternatively, that an open tender should be issued.

Despite acknowledging that the increase would affect the tourism sector, he maintained that Malta's over tourism problem justified the measure.

Concerns over Malta's fading authenticity

Balzan then directed the interview to concerns that Malta's tourism industry is losing its authenticity and questioned the declining presence of Maltese workers in restaurants and hospitality establishments.

Abela acknowledged the problem, saying government is working to encourage more Maltese people to enter the sector, announcing that the Malta Tourism Authority will shortly introduce a scheme supporting restaurants that use Maltese products.

The minister also pointed to plans to place Maltese students at the Institute of Tourism Studies in the highest tiers of stipends and benefits from next January.

Perici Calascione, meanwhile, argued that Malta's tourism industry cannot deliver a quality experience without improving the public spaces and infrastructure surrounding tourist establishments.