Association calls for discounted utility and VAT rates for Gozitan hotels

The Gozo Tourism Association has told the finance ministry it would like to see all tourist establishments in Gozo to be charged domestic utility rates, instead of commercial rates.

The GTA said in its budget proposals that the persistence of high utility rates would have grave repercussions in the tourism sector, and that a similar system of discrimination was already being applied to the manufacturing industry on Gozo in recognition of its being a major employment provider.

“If the capping system is to be retained for hotels, the capping for the hotels on Gozo should be different from that of hotels in Malta so that they would reflect the seasonality element,” the GTA said.

The Gozo Tourism Association also wants a different VAT rate on rate on Gozitan accommodation, in order to allow for the promotion of the destination through more competitive rates. “During 2010, tourist arrivals in Malta was calculated at 1,330,000, which represents 12% increase in arrivals on the previous year. However this increase was not reflected to the same extent in Gozo. Infact according to NSO figures the increase in foreign arrivals in 2010 was 2% when compared to 2009 statistics.”

The Gozo Tourism Association is also insisting on the need for an airlink between Malta and Gozo in budget proposals it has presented which seem to indicate a waning of interest in Chris Said’s underwater tunnel between the two islands.

“While appreciating the fact that your government has commissioned a study with regards the viability of an under seabed tunnel between Malta and Gozo, the Gozo Tourism Association still believes that investing on an airlink will further improve and enhance accessibility to Gozo,” the GTA said of the parliamentary secretary’s proposal on the tunnel.

The GTA said government should take a courageous decision in favour of an airstrip on Gozo. “We leave it to more competent authorities to decide on the site where such an airstrip would be located.”

The association called for more infrastructural investment in other cruise berthing facilities off Mgarr and Marsalforn, in order to offer alternative berthing facilities due to Westerly prevailing winds. 

The GTA complained of unfair competition from “several hundreds of beds” in farmhouse and self-catering apartments that were unlicensed by the Malta Tourism Authority.

“This situation was never and still is not acceptable to the Gozo Tourism Association… the association has been continually proposing to the competent authorities for the revision of license fees.”

The GTA said it wants a common licence each for single self-catering apartments and farmhouses.

It also proposed the abolishment of the swimming pool licence that dates back to the 1980s. “Since today we are no longer facing this problem, the Gozo Tourism Association is requesting the abolition of this licence.”