An agreement appears to have been reached between the government and the Malta Hotels and Restaurants Association on measures that will soften the impact of the utility hike on the tourism industry,
According to MHRA president George Micallef, speaking at the end of a conference for the restaurants sector yesterday, the two sides were engaged in talks on the measures.
Micallef said operating costs for restaurants were increasing at a rate which would not be absorbed from revenues from price increases, citing an increase of €1.8 million in utility rates only for the sector. In meetings with finance minister Tonio Fenech and parliamentary secretary for tourism Mario Demarco, the MHRA had asked for more investment into increasing seat capacity from new countries.
Micallef underlined the importance of the restaurants sector within the tourism industry, not just in terms of its significant contribution to tourism earnings and employment generation, but also in terms of the overall experience to visitors and indeed that of local patrons.
He further stated that what clearly came out from the conference was the importance of maintaining standards and that of offering value for money whilst remaining competitive.
“Whilst there is no doubt that there is cut-throat competition out there, the costs were rising at a rate that may render a number of operators in this sector unsustainable.”
Micallef said MHRA proposed a number of measures to mitigate the effects of the increase in energy costs
“Secondly that room nights were decreasing to a level which is leading certain sectors of the industry becoming unsustainable,” Micallef said.
George Micallef said that an agreement has been reached in principle with government and hoped that once the finer details are confirmed, an announcement can be made in the coming days.
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