‘A budget that helps the tourism industry survive’ – MHRA

The Malta Hotels and Restaurants Association

(MHRA) said that the environment determining this year’s budget is one which the tourism, hospitality and travel operators were definitely not expecting to experience earlier this year.

By the end of the first quarter of 2020, the COVID-19 pandemic brought international travel to an abrupt halt and significantly impacted the tourism industry across the world. The problems in the tourism industry had a negative effect on the Maltese economy given that the sector is a major source of employment and government revenue.

MHRA said it recognises the government’s willingness to work in close cooperation with the Association as a key social partner from the start of the pandemic. Significantly MHRA commends the balanced and effective approach to difficult decisions which needed to be taken in unparalleled circumstances. This has ensured that thousands of employees and hundreds of operators across hotels and restaurants remained operational.

The government has delivered a budget which averts the worst effects in the near future being caused by the pandemic. MHRA is assured that measures will be taken to speed the recovery as soon as the pandemic subsides.

MHRA welcomed the government’s decision to extend the wage subsidy to employees working across the travel, tourism, and hospitality sector till March 2021. This is a key measure which in the circumstances is being considered as a vital lifeline by MHRA members. MHRA also welcomed that the wage subsidy will be extended to employees replacing incumbents who leave their place of work. This is critical to ensure that all hotel and restaurant operations keep going, recognising the specific nature of hospitality business.

The relaunch of the vouchers scheme is also a clear message by the government that it values the recommendations made by MHRA as significantly these measures will keep sustaining the operations of the hotels, restaurants and other economic sectors in the most difficult environment.

MHRA positively notes that no new taxes have been introduced. MHRA believes that this budget is an ambitious one and in the right direction. The budget is allowing for enough space and ability to craft further action as may be necessary at the most appropriate time.

MHRA also values Government’s strong focus on social initiatives in this budget as this will inspire a feel-good factor across all society, in times which are difficult for all.