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

Jetstar announce service from Wellington to Dunedin
Thursday, July 30, 2015    
Dubai International traffic reaches
Wednesday, July 29, 2015    
WestJet Connect takes flight
Tuesday, July 28, 2015    
Controllers at Gatwick beat their own record
Monday, July 27, 2015    
EVA Air Boosts Houston Service
Sunday, July 26, 2015    
Cargolux and OGBL achieve CWA breakthrough
Friday, July 24, 2015    
United Announces Highest-Ever Quarterly Profit
Thursday, July 23, 2015    
Airberlin opens its ninth Exclusive Waiting Area
Wednesday, July 22, 2015    
AIRFRANCE Cargo W15 Operations
Tuesday, July 21, 2015    
Austrian Airlines Removes Dubai
Monday, July 20, 2015    
April 2015 U.S. Airline Traffic Data
Sunday, July 19, 2015    
QANTAS Reduces Sydney – Los Angeles Flights
Saturday, July 18, 2015    
ANA Resumes Australia Service from Dec 2015
Thursday, July 16, 2015    
Condor Confirms Frankfurt – Austin Service
Wednesday, July 15, 2015    
Jetstar announce service from Wellington to Dunedin
Jetstar announce service from Wellington to Dunedin
Today Jetstar announced a new route will commence between Wellington and Du
Dubai International traffic reaches
Dubai International traffic reaches
Dubai International traffic reaches 5.9m passengers in June
WestJet Connect takes flight
WestJet Connect takes flight
WestJet today announced it has begun rolling out its new inflight entertain
Malaysia Airlines Appoints New Chief Commercial Officer
Malaysia Airlines Appoints New Chief Commercial Officer
Malaysia Airlines (MAS) today officially announced the appointment of Paul
Cargolux and OGBL achieve CWA breakthrough
Cargolux and OGBL achieve CWA breakthrough
The management of Cargolux Airlines and Luxembourg’s OGBL union have reache
Austrian Airlines Removes Dubai
Austrian Airlines Removes Dubai
Austrian Airlines Removes Dubai as a Flight Destination from its Route Netw
Turkish Airlines inaugurates Dammam flights to be operated
Turkish Airlines inaugurates Dammam flights to be operated
Turkish Airlines inaugurates Dammam (Saudi Arabia) flights to be operated f
  • 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