MHRA's proposals for the upcoming government

Report by Irene Cassar

During a press conference held today, the Malta Hotels and Restaurants Association (MHRA) highlighted its proposals which were presented to all political parties last month. The association said their proposals were received positively by both major parties.

Describing itself as a "major stakeholder" of the Maltese economy, MHRA defined the the Government's role as "the support for the engine of the economy, and not the engine itself." MHRA stressed that the Government's mission should be "to ensure that Malta keeps winning."

MHRA president Tony Zahra, called upon the Government to urgently reinvent governing processes, which may involve revisiting outdated processes or making them more user-friendly.

He emphasised the necessity for a "culture of accountability" where there must always be somebody held responsible for actions which are taken, ensuring things are done as promised.

Zahra also proposed that further support is required for entrepreneurs, which he described as Malta's "opportunity-makers".

Further to this, the MRHA president said: "the new Government needs to commit to further reforming the regulatory system related to the sustainable development of our infrastructures."

New concepts must be tracked through a channel which is sustainable, environmentally, socially and economically, Zahra pointed out.

Delving into the question of the Pension Policy, Zahra said that "the clock is ticking", explaining that the problem will only intensify over time.

The MHRA believes that the Government must address with urgency a structured programme "to incentivize citizens to opt for private services in a number of fields including pensions, education and health," Zahra said.

Turning to energy prices which is one of the sector's main expenses, Zahra said: "MHRA is not satisfied with the manner the Enemalta issue is currently being handled" and called upon this issue to be removed from politics and "delegated to an independent technocrat body to ensure the sustainable recovery of our main energy source."

MHRA's proposals to restore this sustainability include the reduction of VAT back to the original 5% rate on tourism, lowering the utility rates by 4 cents a kilowatt compensated by the new Delimara power station's improved efficiency, and increasing tourist arrivals in the shoulder and winter period.

Although 2012 was a record year for the tourism industry, Zahra noted that "this is a game that never ends" and expressed concern that increasing costs are leading to serious sustainability issues which may be detrimental in the long term.

He added that more efforts need to be made to enrich Malta's product, namely by ensuring modern streets, cleanliness, safety and more beaches.

According to Zahra, promotion of traditional local crafts and the retention of Malta's architectural heritage are also necessary to improve Malta's product.