The Tourism and Culture Ministry budget estimates were yesterday morning approved by parliament.

Opening the debate, Labour MP Joseph Cuschieri accused the government of introducing new taxes that rendered the tourism industry more expensive, thus less competitive. He criticised the government for failing to live up to its aim of attracting 50,000 more tourists per year and falling short of fulfilling its pledged projects.

He commented that during the legislature 600 people lost their job in tourism, 300 of which from hotels and restaurants.

MLP culture spokesman Carmelo Abela said that the government lifted 43 proposals on culture from the Labour Party plans, although the government had said that the MLP plans were not relevant.

He then asked the minister to present a set of policies, as well as a structure plan for the Mediterranean Music Academy. Mr Abela said that the opening session of the academy was attended by 14 students, only two of whom were Maltese. He also asked whether the setting up of the academy was done after consultations with local experts.

He said that the Johann Strauss School of Music and the University music department are in dire need of money. The building of the School of Music, he said, is in a pitiful state and the school urgently needs new instruments.

Mr Abela enquired on the way the government will finance the upgrade of the national orchestra to the level of philharmonic and criticised the government for failing to address the need for a Carnival village.

MLP tourism spokesman Evarist Bartolo asked the government to stop the ongoing speculation in the country with regard to election day as this is causing uncertainty in the economy, as well as among stakeholders in the tourism industry

He expressed his regret at the closing down of two hotels in St Paul’s Bay, and wished the Excelsior Hotel and the new management at the Phoenicia luck. He said that this is the natural life of an industry that renews itself; yet, he said, the closure of the two St Paul’s Bay hotels is another blow to the local tourism industry.

Mr Bartolo said that competitor countries are constantly renewing themselves, while new countries are entering the fray. He said he is very pleased with the increase in tourist arrivals, which was also thanks to low cost carriers.

The MLP spokesman said the government must remember that the subsidies on low cost carriers will only last till 2012, therefore the government must think about other ways of attracting carriers who currently come to Malta. “Currently we are just buying business, we need our industry to be market driven and place it on a solid basis,” he said.

A solid basis for the industry will help entrepreneurs recuperate losses they made in the past and re-invest their profits. He argued that the industry is not profitable enough and that the diminishing number of nights spent in Malta should be countered by an increase in inbound tourism. The Labour MP said the industry should focus more on tourists that do not travel in groups and seek cheaper accommodation.

Mr Bartolo criticised the government for taking reactionary measures. He stated that the Tourism Inter-ministerial Committee failed miserably and there was no strategic plan on the way forward.

According to Mr Bartolo, the government should empower specialised associations by giving them a budget and oblige them to carry out a project. In this way, he said, work will surely be carried out efficiently. “This is why I am in favour of a Gozo Tourism Authority,” he said.

Gozo, along with St Paul’s Bay and the south of Malta, is not benefiting from tourism as it should be. He said that if need be, a helicopter service between the islands should be subsidised as in Greece, the UK and Spain.

He recognised the improved services of Gozo Channel, saying that it did well because it is being managed by a Gozitan who loves all that is Gozitan.

The Labour MP said that the best marketing tool is word of mouth, and tourists should come to a clean and beautiful Malta, where people are courteous and they are not ripped off. He stated that Malta is so rich in culture and heritage that it is an open air museum; however, the island is a building site, full of cranes, heavy machinery and closed roads.

He also asked the government to make it worthwhile for families to host English language students, as it does not make sense to accommodate youngsters in hotels with older tourists who want to relax. He said Labour agrees that this sector should be strong all year round and called for a fast track visa issue in order to lure more Asians and Latin Americans.

Mr Bartolo insisted on the need for new golf courses in Malta and Gozo, saying that these can be built without causing environmental disasters. He heavily criticised fish farms, as pens are too close to the shore and fish droppings contaminate the sea.

Nationalist MP Michael Gonzi started his speech by reviewing the latest tourism figures saying that Malta managed to grab a sizeable chunk of the increase in tourism in the Mediterranean region.

Dr Gonzi praised the government for organising a number of activities in St Paul’s Bay during summer. These, he said, were carried out in collaboration with all local stakeholders. He heavily criticised Labour’s proposal of a tourism zone management unit that has executive powers. This, said Dr Gonzi, is tantamount to closing down the local council.

PN back bencher Robert Arrigo said that although inbound tourism went well, there was a decline of French and Dutch tourists. This shortfall, he said, can be easily countered with a little bit more marketing in the respective countries.

He lauded the merits of low cost carriers and praised Air Malta for curbing its losses. He advised the government to keep contact with tour operators, as low cost passengers have erratic plans while operators are organised and plan ahead. Mr Arrigo said that in this regard, the opening of the Malta Tourism Authority’s foreign offices will come in handy. He proposed a 24/7 satellite channel advertising Malta as well as fixed webcams on the MTA portal.

Nationalist MP Jeffrey Pullicino Orlando called for branching in niche markets such as religious and agro tourism as well as the need to treat tourists with courtesy and as guests.

He said Labour was now praising low cost carriers when in the past party leader Alfred Sant was very much against them. He asked the government to attract older English language students also during leaner months.

Culture and Tourism Minister Francis Zammit Dimech described his ministry as a fundamental pillar of the country’s economy. He said that this year’s improved results came as a result of hard work and hard decisions. The government, MTA and stakeholders worked together in true team spirit.

He said that the opposition liked to say that the government taxes tourism, however, there was no surcharge on tourism and the industry was given an additional help of Lm2 million.

The minister described how a lot of people who used to host English language students used to think that their income was tax free. He said that government had to act in order to curb abuse. These families will not be taxed for their first Lm1,000 they earn and the only one third of their expenses will be taxable.

He criticised the opposition for saying that the government lifted its proposals from Labour documents, saying that these were published after the pre-budget documents.

Dr Zammit Dimech criticised the MLP for its proposal of helping entrepreneurs build public land in the St Paul’s Bay on government land. He produced maps of the area, showing that a lot of land is used for agricultural purposes and is outside the development zones. He challenged the opposition to state how will the land be utilised and how will entrepreneurs be chosen for the project.

The minister spoke of the subsidies on low cost areas. He said that other EU countries will terminate their subsidy period before Malta, thus the government will analyse what the other countries will do. Low cost carriers, he said, accounted for nine per cent of inbound tourism between January and September. He said that low cost carriers will continue issuing new routes, while calling Air Malta “the highway to Malta”.

Dr Zammit Dimech said that tourists are spending fewer nights in Malta, however the Malta Hotels and Restaurants Association reported increases in total expenditure, improved occupancy rates and gross operating profit. Forecasts show a rosy picture, he said.

The minister spoke highly of the MTA and produced a six-page A4 sized document list of the activities held between October 2006 and planned until next January in which the authority was involved.

Minister Zammit Dimech praised Heritage Malta for its work and the high profile exhibitions it has produced. He mentioned in particular the Chinese Terracotta Soldiers exhibition and the current Caravaggio one.

He said that Labour’s failure in criticising the foundation means that it has worked well, as did St James Cavalier.

He explained a number of projects carried out by the centre and the work in promoting local art.

The budget estimate passed with 30 votes in favour and 23 against.