Tourism Minister Edward Zammit Lewis this morning said commercial motivation was the reason why Island Hotels Group decided to postpone a major refurbishment project at the Radisson Blu hotel in St Julians.
In a statement, IHG said the project, that would have included the construction of a further two floors and a complete upgrade of the property, was scheduled to start in November 2014 and concluded by summer 2015.
"Following a number of recent reports in the local media, the directors have become aware that there are several major developments planned in the St. George's Bay and surrounding area in both the hotel sector and other real-estate that would have a material impact on the area, in particular during the construction phase. In view of the above, the directors consider that the responsible course of action at this point, in the commercial interests of the company, would be to postpone the major refurbishment project until more information on these other projects becomes available. At that stage the directors would be in a better position to make informed decisions on the planned refurbishment programme."
The company said that, in the meantime, it will still be closing down the Radisson Blu St Julians in November for necessary maintenance and other minor works in anticipation of re-opening in the near future.
Reacting to the news this morning, Tourism Minister Edward Zammit Lewis said he had no doubt that there was a "commercial motivation" behind this decision.
Dr Zammit Lewis said it was still positive that the private sector was willing to invest. "One investment should not come at the cost of another. This is a question of who will invest now and who will wait and invest later." The Minister said the planned St George's Bay projects will have to be handled well so as to minimise inconvenience for all sides. He also insisted that the government made sure that no major development projects were carried out in tourist areas over the summer. Dr Zammit Lewis also thanked the Zahra family for their contribution to the tourism sector over the years.
Striving for a Blue Flag beach in the south
The Tourism Minister was speaking at a World Tourism Day event in Cospicua, which included a 'Community Showcase' in St Margerita Squara, guided tours and traditional Ghana singing. The events were organised by the Bir Mula Heritage Museum, which was open to the public free of charge throughout the day.
This year's theme is Tourism and Community Development, which is in line with the government's vision of expanding tourism to lesser known areas and small villages. This will offer tourists an alternative to the usual "sea and sun" holiday and also spread to even out tourists across the whole country.
Dr Zammit Lewis announced that the government is finalising the calendar of events for the coming winter. This includes the Malta International Airshow, which is being held over the weekend, and the upcoming Baroque Festival. "Through these activities we are offering a different product. We are giving tourists many more reasons to come to Malta."
The Minister said the government was also working on increasing tourism in the shoulder months and in rural villages. "The benefits of tourism have to be expanded to all localities, including Cospicua and the three cities, which have a lot to offer. For this reason we also have to strengthen the sea connections between Valletta and the outer port areas."
Dr Zammit Lewis also announced that a new foundation which will serve to apply for EU funds for tourism projects will be set up shortly. The foundation will be distinct from the Tourism Ministry. The government is, in the meantime, also working to achieve a Blue Flag status for beaches in the south.