Tourist operators concerned over impact of black economy
The Malta Hotels and Restaurants Association (MHRA) says only 70% of tourist arrivals lodge in hotels and other licensed accommodations.
MHRA's new president Tony Zahra said Air Malta and Enemalta are the two main problems which they'd like government to address.
"We have long been telling government it has two problems. We are not convinced Enemalta's costs are such they cannot be reduced," Zahra said in an interview with Sunday newspaper Illum.
He said Air Malta's situation is worrying, especially when considering that the national airline is not only crucial for tourism but for the whole country as well.
Zahra criticised government for not taking action on the 30% of tourists who come to Malta and lodge in unlicensed accommodations. Their money, he said, ends up in the black economy.
"Government is losing VAT and other tax it would otherwise collect. 30% means loss of millions of euros each year. Government is the regulator and it is his responsibility to see everyone is observing the law," he said.
Zahra also tells Illum tourism should have its own government ministry.
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