A reduction in the VAT rate in the hospitality industry, currently at 18 per cent, would help immensely towards improving the tourism industry, the St Paul’s Bay Bars and Restaurants Association said yesterday.

This past year Malta has experienced a fall in the number of tourists coming over, and a reduction in the VAT charged on services in the industry, said the association, would make up for the ever-increasing costs facing the tourism industry. The association also called for the removal of the departure tax.

The resignation of the whole MTA board was another massive setback to the tourism industry, the association said.