Salient measures proposed by Gozo Tourism Association for Budget 2019

Fiscal measures

The GTA is calling for an amendment spread on a three-year period to the present VAT rates on tourism services on Gozo to mitigate seasonality as follows:

Proposed VAT rates

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Accommodation

November to March 3% April to October 7%

Other tourism services VAT rates

The VAT rate for other tourism related services on Gozo, like restaurants, diving and transport should be reduced from 18% to 10%.

• The ring-fencing of the ECO tax contributions collected from Gozitan accommodation establishments in favour of the upgrading and maintenance of the Gozitan touristic product.

• The launch of the tailor-made Tourism Investment Support Scheme, as announced during the Budget 2018 speech to entice local entrepreneurs to upgrade their Gozitan tourist establishments. Such scheme can be financed and piloted by the Ministry for Gozo and in collaboration with the Ministry for Tourism, together with the active participation of the Gozo Tourism Association.

• Training schemes (practical and theoretical) during the winter months aimed at improving knowledge and skills in the tourism industry, including training in soft skills and languages, while encouraging retention of employees during off-peak months, sustained through grants coupled with employer and employee full NI Credit.

• Scheme targeted towards new employees with MQF 5 level and upwards residing in Gozo and working in micro touristic units, subject to credits on employers and employee NI for a period of three years.

• Scheme that encourages employers and employees in the touristic sector on Gozo to follow courses in Post graduate certification, Post graduate diploma and Master of Science in Hospitability Management.

• All types of accommodation units with a swimming-pool and which are covered by a Malta Tourism Authority operating licence, should be exempted from the 15% increase on swimming pools license, as announced in the 2015 Budget.

CONNECTIVITY Air link

• Allocation of funds for a study to identify an alternative site for the construction of the airstrip other than the one earmarked at Ta’ Lambert in Xewkija.

• Consider and evaluate seriously the number of requests from foreign investors who presently are willing to operate a helicopter service between Malta and Gozo.

• In order to make up for the termination of the Sa Maison Cargo service, the GTA is proposing that the cargo ferry service on a daily basis from Mgarr/Cirkewwa/ Mgarr is to be operated with another dedicated vessel in order to have the three existing ferries (Ta’ Pinu, Gaudos and Malita) fully deployed to meet the everincreasing demand on the crossing between the two islands. • Provide the fourth ferry in addition to the three existing ferries, as a contingency for any breakdown to the present ferries, as well as to meet heavy demands during peak periods.

• The GTA is also proposing an integrated ticketing system for Gozo Channel commuters. This system will provide a single ticket which is valid both on the ferries as well as the public transport. The full potential of this system is run by more than one operator and, ideally, for more than one mode of transport. The full potential of such a product can also be exploited by a move to use “smart” ticketing.

• The GTA is once again proposing a change in the ferry fare structure, with the introduction of a seasonal ticketing regime by Gozo Chan- nel that reflects the difference in the low, mid and high seasons.

Other tourism measures

• Urges government to fast forward the amendments to the Tourism Act (1999) as soon as possible and preferably by the end of this summer season 2018.

• The establishment of a fund to enforce and manage the declared marine protected areas in and around Gozo, in order to protect and enhance marine life around the Gozitan coast. This fund can be managed by the already set-up management committees of specific touristic resorts.

• The implementation of the Diving Master Plan, by the Ministry for Gozo which was carried out through EU co-financing way back in 2006 and up to date the actions proposed in this plan were never activated.

• The upkeep on regular basis of the rural roads leading to self-catering accommodation for easier access, especially during winter time. • The Intervention Team set up by the Ministry for Gozo in 2017 should cover under its remit ownership, maintenance and management of several touristic spots like the Qbajjar Promenade, the Three Hills Garden in Marsalforn, the Villa Rundle Gardens, Zewwieqa Waterfront, country walk paths, dive sites, and so on.

• The development of sports facilities including a water park, athletics track and training camp facilities that can be incorporated in Ta’ Xhajma Race Track.

• The setting up of a foundation for the Cittadella management with the participation of the various stakeholders, with the specific remit to manage this main touristic spot in Gozo.

The GTA is putting forward these proposals as a result of its continuous contact with its member operators within the industry, who revert to the Association with their issues.

In this regard we are strongly aware of the constraints and issues related to the tourism industry in Gozo. It is with extreme caution and full responsibility that we are asking the consideration of the Minister for Finance for these special measures in order to safeguard not only the interest of the stakeholders involved, but also the well-being of this vital industry on the island.