[WATCH] Tourism hit hard by energy tariffs, government-induced costs – MHRA president

MHRA President Tony Zahra said that although more tourists have come to Malta and the number of bed nights has increased, "the spending power of tourists remained the same, and the costs of the industry have risen drastically."

Zahra was speaking during the one-on-one daily discussion programme Reporter on Favourite Channel.

When asked about the present situation in tourism in Malta, when compared to what was generally forecast for 2012, Zahra said: "When comparing the costs incurred when operating a hotel in Malta to a foreign country like Spain for instance, Malta's hotel costs are far more higher, especially due to the high tariffs in energy, which is double the amount. This is a reality we are facing on a national level."

"We did well in a number things but not in others, however profits in the industry have not increased much."

For Malta to remain sustainable in the tourism industry, we must address certain issues, he added.

Zahra complained about the fact that one of MHRA's members was going to organise a small fair in the hotel and after having advertised the event, was immediately put off when a Department of Trade member of staff called him and told him that he would have to pay a €700 license for the fair to be held.

Therefore, all these government-induced costs don't help the industry make enough money either, and as a result of all these costs, hoteliers stop short of investing in future projects such as refurbishing, a better service, etc.

Government's approach

When questioned about the approach by authorities when tackling certain problems - and if authorities leave everything go by or sleep on matters -

Zahra came off as a bit diplomatic at times:

"The authorities can be of help but at times their reaction time is far too slow, something this industry cannot afford. There's definitely room for improvement."

Low-cost

"Tourists used to come through tour operators and to a certain extent, these operators have now been replaced by low-cost, resulting in a big impact on the industry. But if it weren't for low-cost tourism, the sector would be in a worse state."

MHRA, Zahra said, had been labelled as the 'low-cost at all costs brigade', after having pushed for low-cost tourism for two years.

Air Malta-MTA

"Air Malta is not appreciating the importance of today's tourism and without it, Air Malta won't survive and vice-versa.

"For instance, the Malta Tourism Authority and Air Malta don't work hand in hand, something I could never understand. Another thing that bothers me is that Air Malta can boast of a number of people with a vast experience in the field, but are not being utilised."

When asked what problems he would address at this point in time, Zahra said:

"Accessibility: this means airlines, and airlines means Air Malta. If we are not going to have a strong airline, than problems are going to ensue."

On the current political uncertainty, Zahra said that business cannot keep waiting forever.

"As long the current problem remains localised in the political scene only, it won't have a bad impact on tourism, but politicians have to understand that the situation cannot be prolonged and businesses cannot keep waiting forever."