1 - 7 February 2001

MTA contributions

The decision to revise the legal notice on private sector contributions payable to the Malta Tourism Authority is a step backwards, yet in the right direction. The two legal notices published at the beginning of the year caught many in the private sector by surprise and even though they knew the MTA was asking for more in contributions, they never expected the fees to be so high.
Despite numerous complaints from travel agencies and their respective associations and federation, the MTA apparently refused to budge saying that the increases were not exorbitant and needed if the Authority was to continue re-positioning the island and targeting new tourism markets.
This newspaper, while agreeing in part with the increases, felt that taking into consideration the present situation of the local tourist industry, the proposed contributions asked from the private sector would only cause more problems for those already struggling to make ends meet.
It has taken nearly one month of considerable opposition to bring about a change in the MTA’s reasoning. The new legal notice confirms the increases in the majority of cases but does away with the 50 per cent surcharge levied on the various tourist operators if they did not pay the full amount in time. The MTA and the government have also committed themselves not to announce further increases for another four years. The basic contribution has instead been increased and a 20 per cent reduction will be applied when and if the payment is effected on time.
On Tuesday, Tourism Minister Michael Refalo said the new legal notice was being issued following talks held last week and after the MTA presented its final and revised recommendations.
At this point, it is pertinent to ask a few questions, irrespective of whether the new figures are still on the high side or not.
Is it possible that no one at the Authority or the Ministry of Tourism advised the board that the contributions demanded from the private sector were too high? Wouldn’t a few words of advice have saved a lot of time and unnecessary arguments between the MTA and the travel agents?
Was the government trying to test the waters by publishing the legal notice at the beginning of the year in the hope that no one would object to the MTA contributions structure?
If this was the case, then were the government and the Malta Tourism Authority prepared to revise the legal notice if there was an outcry?
Dr John C. Grech, chairman of the MTA was right, however, in saying that no one likes paying more money. However, travel agents are also right in saying that no one likes paying more than they really should.
The Malta Business Weekly welcomes the decision to revise the legal notice and augurs that both the MTA and the private sector work together to revitalise what is, ultimately, one of our most important industries. We do believe, however, that the controversy could have been avoided.

Telecoms: what future?

Last Thursday’s business breakfast hosted by Le Meridien Phoenicia and The Malta Business Weekly provided much food for thought. First of all, it was the first presentation by the Regulator, Joseph V. Tabone, since the authority he chairs was set up on 1 January.
Yet more interesting was the lack of, rather than a heated, discussion that was expected at the breakfast. Judging from past experience, telecom issues always resulted in a hot debate. Not this one however. On the contrary, it seemed that everyone was just content to sit there – after a hearty breakfast – and listen to what the regulator had to say. Even the use of the word ‘renegade’ to describe the recent action taken by some Internet Service Providers failed to produce any sparks.
The few questions asked at the end of Mr Tabone’s presentation were mild. One would have expected this time to have been a perfect opportunity to grill the Regulator. Yet, nothing of the sort happened.
Mr Tabone’s presence as guest speaker generated so much interest that extra chairs had to be brought in to accommodate latecomers. If Mr Tabone’s presence was such a crowd-puller, if it possible that all he said or did not say, was gospel to them?
Is it possible that not one of the ISPs present was interested in raising the subject of open access – an issue that caused so many problems towards the end of 2000? Have the ISPs given up any hope?
Neither did anyone ask the Regulator to comment on what was happening between Malta’s two mobile telephony operators. Why?
As one guest at the breakfast commented afterwards, the lack of debate was worrying. Is this the lull before the storm?