Budget 2023 | MHRA, “Strong headwinds, importance of firm hand on the tiller”

The Malta Hotels and Restaurants Association (MHRA) refers to the Budget 2023 communicated by the Minister of Finance Clyde Caruana as a war chest addressing current unprecedented global economic challenges. MHRA President Tony Zahra states, “the Government’s 600 million investment in energy represents approximately 10% of Malta’s budget and this must be the most important budgetary measure towards ensuring the continued sustainability of the tourism industry.

MHRA notes that countries which have not been as bold as Malta in subsidizing energy costs are finding that a lot of small and medium sized enterprises are struggling to stay afloat. MHRA believes that this budgetary measure was necessary to ensure the continued good health of the tourism and hospitality sector.

Mr Zahra also remarks that air connectivity remains the key to a successful economy especially the tourism sector where 99% of tourists arrive by air. In this respect Air Malta remains the most important channel for the industry and MHRA reiterates that the national airline must continue flying without any interruptions what ‘so ever.

With reference to the product, MHRA notes that once again reference is being made to the restructuring of the Tourism Zones Foundation for more effective embellishment and for the regeneration of tourism designated areas across Malta and Gozo. However urgent attention needs to be given to ensure a better upkeep and cleanliness level of these zones.

MHRA welcomes the investment towards the infrastructure, particularly road network, electricity distribution and water production, but notes that equally important is investment in the drainage system.

MHRA is pleased to note that works on the ITS Campus is to commence next year, as labour supply remains a critical success factor for the industry.

MHRA also commends wide ranging social benefits aimed announced and tax incentives related to emoluments of employees working in the tourism sector.

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The Mediterranean Observer is a news portal dedicated to travel tourism, and hospitality in the Mediterranean region. This portal is managed by the Mediterranean Tourism Foundation, based in the Mediterranean country of Malta.