The Malta Independent 23 April 2024, Tuesday
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Air Malta And tourism

Malta Independent Monday, 20 February 2012, 00:00 Last update: about 12 years ago

The tourism plan 2012-2016 was launched for public consultation two months into 2012 when it should be obvious for all that the process should have started at the beginning of last year

Incredibly, the Tourism Ministry made no apologies for this delay, nor did it bother to explain why it took so long for it to prepare its plan. Now, the minister can rest assured that he won’t have his shadow breathing down his neck any longer now that the draft policy - because that is what it is – has been published. Of course, the final tourism plan will only be known sometime in late March or April of this year, which means that the government hasn’t hit the ground running at a time when the industry is facing some very serious challenges and an uncertain scenario on the Air Malta front.

The tourism policy contains positive goals carried from the previous national plan as well as new ones pegged to current developing scenarios. But for the plan to survive and succeed it will require, doubtlessly, the contribution of the national airline. While MTA seems to be doing pretty well - through Ryan Air and other low-cost carriers - with connecting Malta to new destinations in central and northern Europe, it is struggling to keep abreast of restructuring developments at Air Malta which accounts to 50% of seat capacity to Malta.

It is clear that Air Malta is vital to the tourism industry and that indeed any jolts at the national carrier will transmit shocks down the industry. There is consensus among industry players as well as among leaders at the MTA that Air Malta’s prospected downsizing is being done with little if any attention to the tourism industry. The only person who seems to be denying all this is the tourism minister himself for reasons I believe are more attached to loyalty towards the cabinet than out of firm personal conviction.

It is clear the tourism minister is being frustrated by the finance minister who politically runs Air Malta and who seems to be more concerned in seeing his airline return to profitability than in keeping occupancy levels at hotels at reasonably good levels when a measure of both scopes is necessary. The finance minister, incidentally, shoulders the blame for imposing massive burdens in the form of astronomical utility bills and high petrol and diesel prices on the industry. But then it is also in the tourism minister’s remit to influence fiscal policy that impacts his industry.

The fact is that Air Malta is considering shedding not only loss-making routes but also some of its more profitable ones. To add insult to injury it is also considering negotiating the sale of its most prestigious airport slots including the London slots which are among the best the airline could ever have. You can actually fly to London in the morning and return in the evening on the same day (and vice-versa), and that says a lot for the business segment in particular. I am not aware that MTA or the tourism minister himself have been involved in this plan.

Now if this plan comes to fruition, cutting these routes and surrendering these slots could deal a serious blow to seat capacity and to hotel occupancy levels as Air Malta will not be able to guarantee its 50% contribution to the industry any longer. This will drive MTA into adopting a fast-track policy of substitution that will involve looking for other legacy airlines or LCCs willing to fly the routes and which will definitely come at a cost.

You do not need an experienced expat at the helm of Air Malta to be able to downsize the fleet and the workforce. Nor do you need a team of expatriates to be able to cut routes and surrender slots. Any ‘ċuċ Malti’ can make a company profitable by cutting costs.

The ability lies in making the company more efficient with less resources. But without cutting off the umbilical cord to the tourism industry.

Dr Gulia is the Opposition’s Main Spokesman for Tourism and Air Malta

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