The Gozo Tourism Association (GTA) in its reaction to last night’s Budget speech, “welcomed several measures that support investment in the Gozitan tourism product, as well as measures to entice employee retention.”

It noted that it outlines several infrastructure projects for the island of Gozo, which are beneficial also to the tourism sector, including the Victoria multi-level parking facility, the Rural Airfield, upgrades to arterial roads, and the installation of a new hyperbaric unit at the Gozo General Hospital.

The GTA said that in addition, the Minister for Finance announced more sea connectivity to Gozo with the introduction of a new ferry service connecting Sliema, Bugibba, and Mgarr, as well as the upgrading of the Cirkewwa and Mgarr ferry Terminals.

However, the GTA highlighted that the Budget speech “does not address any of the Association’s proposals for a comprehensive plan for the inter-island sea link, such as the replacement of the fourth ferry, the expansion of Mgarr port, and the development of an alternative road.”

It noted that the Budget addresses the social dimension of the Maltese Islands. “It places particular emphasis on families and the elderly through various measures, including increases across various categories of social benefits, enhanced tax deductions, and higher children’s allowances. These initiatives aim to tackle the low fertility rate in the Maltese Islands and help mitigate the rising cost of living.”

Furthermore, the GTA said that this Budget supports the business sector through the continuation and expansion of the Micro Invest scheme, aimed to address digitalisation and AI adoption.

The GTA said that there are also measures specifically intended to enhance Gozo’s contribution to national economic growth.

The only tax increase announced in the Budget speech affects the tourism sector, the GTA said, with the eco-contribution rising from €0.50 to €1.50 per bed night, intended to be invested in the tourism product.

However, the Gozo Tourism Association noted that its proposal to ringfence the eco-contribution collected from Gozitan accommodation, so it could be reinvested in tourism projects in Gozo, “was completely overlooked.”

On a positive note, the GTA said that the Budget speech did include its proposal to amend and update the Tourism Act to reflect the current tourism realities.

File photo: Gozo News/Alain Salvary

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