The MHRA described the Budget announced yesterday as one that “helps the tourism industry survive” and lauded the Government for its willingness to work in close cooperation with the Association.

The praise extends to the Government's “balanced and effective approach to difficult decisions”, saying this ensured that thousands of employees and hundreds of operators across Malta and Gozo remained operational.

The decision to extend the wage subsidy scheme for employees of the travel, tourism and hospitality sector through to March 2021 was described as “a key measure which is being considered as a vital lifeline by MHRA members”. The MHRA welcomed the announcement that the wage subsidy will be extended to employees replacing incumbents who leave their place of work, saying it is “critical to ensure that all hotel and restaurant operations keep going” in view of the specific nature of hospitality business.

The MHRA said that the relaunch of the vouchers scheme is also a clear message by Government that it values the recommendations made by MHRA, “as significantly these measures will keep sustaining the operations of the hotels, restaurants and other economic sectors in the most difficult environment”.

The MHRA called the impact of COVID-19 on the sector “shattering”. Noting that the environment determining this year’s Budget is one which tourism, hospitality and travel operators were definitely not expecting to experience earlier this year, the Association highlighted the importance of the industry to the Maltese economy as a major source of employment and government revenue.

“Initially the pandemic seemed to be a situation which could be controlled during this year. However, now it is widely recognised that it will be a longer journey. The Government has delivered a budget which averts the worst effects in the near future being caused by the pandemic. MHRA is assured that measures will be taken to speed the recovery as soon as the pandemic subsides.”

The MHRA welcomed the various initiatives aimed at improving the environment and quality of life of all citizens, and the emphasis on green developments and schemes to mitigate the effect of climate change, saying “the substantial EU funding announced in the Budget in support of these measures are indeed encouraging. This budget incentivises and rewards investment in innovation and digital development which are pivotal for Malta to remain competitive in the marketplace.”

The MHRA also welcomed the investment announced for the upgrading of the tourism product, in particular the embellishment of tourism zones, greening of the environment, coastal upgrading, road infrastructure, waste management and other measures. It hailed the Government’s emphasis on quality “as this is fundamental in the face of increased competition”.

The efforts to secure new markets were also acknowledged. “Over and above the short-term initiatives MHRA notes Government’s efforts to also look at the future by setting strong foundations for matters related to the creation of new economic sectors such as Esports and further support to boost the conference and incentive business.” The increase in the allocation of funds for the Malta Tourism Authority was also welcomed.

MHRA positively noted that no new taxes have been introduced. “MHRA believes that this budget is an ambitious one and in the right direction. The budget is allowing for enough space and ability to craft further action as may be necessary at the most appropriate time.”

MHRA also valued the Government’s strong focus on social initiatives in this Budget, saying “this will inspire a feel-good factor across all society, in times which are difficult for all”. 

MHRA strongly believes that the tourism industry is resilient and will return to be a major pillar of the economy once the pandemic subsides.