MHRA hits out at tourist bus fares: ‘selective targeting’ another blow for industry

The Malta Hotels and Restaurants Association said it was “surprised to learn” that government would be backing higher bus fares for tourists, under conditions by the new Arriva-Tumas bus consortium that will take over public transportation.

“The MHRA strongly opposes the selective targeting of the tourist industry for increases in charges whether it is coming from the government or from a private company,” the MHRA said.

“If this measure is implemented it will cause tremendous damage to the industry, as it sends a clear message that tourists are there to be fleeced. In addition the MHRA reminds government that only last August, it advised MHRA that an eco-contribution solely paid by tourists could not be implemented, citing discrimination under EU regulations if applied exclusively to tourists (non Maltese ID holders) and not to Maltese ID holders. In fact this is why the VAT was then raised, Government subsequently said.”

The government has indicated in the last budget that it wants to increase the VAT rate on hotel accommodation from 5% to 7%.

During the launch of the new public transport system last Saturday, it was announced that tourists and anyone who fails to present a local ID to buy a bus ticket will have to pay higher fares.

“The parallels between this system and that of the proposed eco-contribution are obvious. The MHRA cannot but help question this inconsistency. The authorities, and all those that have the tourism industry at heart, have always warned against the fleecing of bona fide tourists and the repercussions this can cause.

“Ironically, in some instances this mal-practice involved bus drivers, amongst other service providers, and these were dealt with accordingly, and now government appears to be institutionalising this practice. The MHRA finds this decision discriminating and offensive to visitors.”

The MHRA said it was “still struggling” to come to terms with the unexpected announcement of the increase of the VAT.

“The MHRA cannot understand why government is singling out and continues to tax the tourism industry, at the risk of jeopardising its long term sustainability. The MHRA calls upon government to reconsider this decision before any more harm is done to the industry.”