MHRA recommends ‘commission’ for hoteliers on sale of proposed eco-contribution coupons
Karl Stagno-Navarra
The Malta Hotels and Restaurants Association (MHRA) have recommended to government that a 25 cents commission is to be pocketed by hoteliers who will be selling eco-contribution coupons to tourists.
The scheme is expected to garner an estimated €250,000 between the hoteliers in a year.
MHRA president George Micallef stopped short of quantifying the proposed commission, but told MaltaToday that his association has “proposed that a small commission should be allowed to those providing the service of this eco-contribution payment scheme, so as to cover the administrative costs and facilitate the provision of this service to other service providers other than just hotels.”
According to an “agreement in principle”, as recently announced by finance minister Tonio Fenech, parliamentary secretary Mario de Marco and MHRA representatives, government was set to scrap the controversial 50 cents per night bed tax and convert it into an eco-tax.
MHRA objected to the bed tax, as it argued that it discriminated against the hotel sector and exempted approximately 30% of tourists that do not stay in hotels from paying the tax.
“MHRA’s proposal to switch the bed tax to an eco-contribution capped at €3.50 irrespective of length of stay is a more equitable proposal, which addressed all the concerns raised by the many stakeholders of the industry,” George Micallef told MaltaToday.
MHRA – he said – felt that the proposed bed tax, heavily taxed those visitors who came for long stays including students, and would have affected the competitiveness of the islands particularly in these niche markets.
“It also taxed the Maltese residents who took short weekend breaks in hotels in Malta and Gozo in licensed accommodation, besides creating huge administrative burdens,” Micallef said, adding that the MHRA’s proposal to switch the bed tax to an eco-contribution capped at €3.50 irrespective of length of stay is a more equitable proposal, which addressed all the concerns raised by the many stakeholders in the industry.
As to the methodology for collection of the eco-contribution, George Micallef explained that MHRA’s proposal to government is that all tourists will have to pay it, be it at the hotel, with the travel representative, or at the airport.
“MHRA proposed the introduction of an eco-voucher or coupon, which is currently being studied by government. Evidence of payment will need to be presented with the boarding card on departure.”
Asked if this eco-contribution will also be paid by cruise passengers, George Micallef explained that these do not qualify as tourists as they do not spend an overnight stay, “so they are automatically exempted.”
He explained that locals staying in hotels will not need to pay the eco-contribution. “Anyone with a local ID or passport will also be exempted from paying the eco-contribution at the airport or ferry terminal, as locals already contribute through other forms of taxes for this purpose.”
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