AirNewsTimes Uk About US Contact

Air Malta rising costs overshadow tourism

Air Malta rising costs overshadow tourism

Air Malta, rising costs spoil the party for tourism industry

» Tourism | Thursday, June 23, 2011 • Air News Times
There was good news coupled with uncertainty for the tourism industry yesterday, as figures showed a sharp rise in arrivals in the first quarter while the situation at Air Malta and rising costs cast a shadow over future prospects.

Welcoming a 23 per cent increase in tourism compared to the first three months last year, Malta Hotels and Restaurants Association president George Micallef said there had also been an increase in occupancy and revenue.

He thanked the Malta Tourism Authority for its efforts and said the rise was mostly due to increased seat capacity brought about by the Ryanair base in Malta and more flights by Easy Jet.

However, due to the uncertainty at Air Malta, operators were finding it difficult to plan for the winter months.

Also, “spiralling costs”, such as water and electricity rates, were still eroding the hard earned profits of hotels and resulting in an “extremely negative trend” in terms of profits, since most of the costs could not be passed on to clients.

While the increase in arrivals made up for the declining rates of bed nights and increased use of private accommodation, there was nothing offsetting the costs hoteliers were facing. Only five-star hotels reduced their winter losses.

“The hotel industry is not thriving as some may think. The government does not seem to appreciate enough the impact of rising costs, even though it has firsthand experience of this,” Mr Micallef said, referring to the government’s struggle to sell Selmun Palace on its own terms.

“We understand that the Air Malta process is a delicate one, and that we are now at a very important juncture, but the clock is ticking and has been ticking for a while now. It is imperative that negotiations with the European Commission are concluded as soon as possible.”

He added that the government could not afford to cut back on seat capacity.

“A significant drop in seat capacity could have very serious consequences,” Mr Micallef said, adding that hotels might have to close down in the winter months.

While the government was focusing on Air Malta, it should not hold back from any other opportunities, he said.

Opposition tourism spokesman Gavin Gulia praised the efforts of the Tourism Parliamentary Secretary Mario de Marco to increase the number of tourist arrivals.

But he added that Dr de Marco should also focus on the long-term sustainability of the industry by influencing fiscal and financial policy in a way that did not impact tourism negatively.

Dr Gulia said there was a “paradox” at the moment, where arrivals were increasing but profitability was declining.

“The government is one entity, it is not an archipelago of islands,” he said, stressing that Dr de Marco should work to reduce government induced costs.

According to the first quarter survey, carried out by Deloitte, arrivals have increased from the UK, Italy, Scandinavia, Spain, Russia and Austria/Switzerland, but particularly from France and the Benelux countries (where arrivals almost doubled). But tourists from Germany and Ireland continued to drop.
Warning: Comments which include insulting, offensive sentences or hints, assault and comments with the unwritten rules of spellingand written in English characters incorrectly will not be approved.
Login to make a comment with your user name
Yorumunuzu Sendin
Tüm Yorumları Okumak İçin tıklayın

More News

Flybe to start London City Airport routes
Wednesday, April 23, 2014    
Pegasus expands menu with leading Turkish chef
Wednesday, April 23, 2014    
Turkish Airlines signs MoU with Air Namibia
Wednesday, April 23, 2014    
JetBlue Pilots Vote for ALPA by Overwhelming Margin
Wednesday, April 23, 2014    
Travel the World with Alaska Airlines and Emirates
Tuesday, April 22, 2014    
Malaysia Airlines Media Statement MH192 Incident
Tuesday, April 22, 2014    
Cabin smoke forces Qatar Airways emergency
Tuesday, April 22, 2014    
Google acquires UAV maker Titan Aerospace
Tuesday, April 22, 2014    
Aeroflot Expands Fleet with New A320
Tuesday, April 22, 2014    
Jet Airways sacks 40 employees in Delhi
Monday, April 21, 2014    
Small plane crashes in Michigan field, killing 2
Monday, April 21, 2014    
Etihad thanks key strategic partners in Canada
Monday, April 21, 2014    
Holy Flame comes to Athens
Monday, April 21, 2014    
AirAsia X adds Xian on its Network
Monday, April 21, 2014    
airberlin iPhone App: World’s First Smartwatch Boarding Pass
airberlin iPhone App: World’s First Smartwatch Boarding Pass
As of today, users of airberlin’s iPhone app can also send a digital boardi
Black box data lost for 2012 Malaysia Air flight
Black box data lost for 2012 Malaysia Air flight
Malaysia Airlines failed to properly preserve flight recordings during an i
Low-tech takes centre stage in MH370 search
Low-tech takes centre stage in MH370 search
The search for missing Malaysia Airlines Flight MH370 may be using some of
A350 XWB customers’ dream cabins
A350 XWB customers’ dream cabins
The A350 XWB cabin was revealed to excited customers and the media in Hambu
Lufthansa Group orders quieter, fuel-efficient engines
Lufthansa Group orders quieter, fuel-efficient engines
Decision taken: Forty new aircraft from the Airbus A320neo family that the
Plane crash in UK kills two
Plane crash in UK kills two
Two persons, including the pilot, have been killed when a light aircraft cr
Police Probe Baggage Thefts at Los Angeles Airport
Police Probe Baggage Thefts at Los Angeles Airport
A $15,000 camera, Gucci bags, name-brand clothing, electronics and jewelry
  • Kara Kutu

  • Çok Okunan

  • Yorumlanan

AirNews'i Delicious'ta PaylaşınAirNews'i Stumbleupon'da Paylaşın!AirNews'i Twitter'da Takip Edin!AirNews Facebook Sayfasını Ziyaret EdinAirNews RSS
UK News | World | Aviation | Airlines | Airports | Business | Space | Technology | Tourism | Photos | Videos

This Site All Rights Reserved. Not be quoted without permission.

Copyright © 2008 - 2011 airnewstimes.co.uk

Design / Software: Air News Times