Turmoil in Libya has not only decimated the Libyan stock market, but also affected a number of Maltese owned companies in various ways.

Earlier this week, it was revealed by government that four and five star hotels were put on alert for a possible influx of people fleeing Libya, staying in Malta until they can find flights back to their home countries.

Island Hotels Group Chairman Winston J Zahra told The Malta Business Weekly; “The situation for hotels in Malta is different now, than it was back in 2011. “The Libyan crisis in 2011 occurred during the shoulder months, thus meaning that hotels had more empty rooms available,” CEO of the Islands Hotels Group Winston Zahra told this paper. In contrast, this Libyan Crisis is happening now, during peak months, resulting in hotels not having much available space although we will always do our utmost to help in such cases, he added.

Chief Operating Officer of the Radisson Blu Resort & Spa, Malta Golden Sands Ernest Barry confirmed Mr Zahra’s statement, emphasising that since Summer is Malta’s tourism peak season, It becomes clear that finding free rooms for those in transit home from Libya would be problematic at best.

The Corinthia hotel properties (the Corinthia Hotel Tripoli and Palm City) are fully operational, a spokesperson for the Corinthia Group said last Friday. The spokesperson added that the group is in constant communication with the Maltese government.

Tensions, immigration and energy

One of the most worrying results of the constant turmoil in Malta’s southern neighbour could be the rise in illegal migration.

Prime Minister Joseph Muscat, a couple of months ago, had said that although the number of immigrants landing on Maltese shores has decreased, this is not the case. He mentioned that the total number of immigrants heading north to safer shores is on the rise; however the reason for the decrease in Malta is due to the Italian-run Mare Nostrum project.

Tensions regarding Italy and the EU on this project are high, with Italy calling for more support on the illegal immigration problem. Minister for Foreign Affairs George Vella had told this newsroom that should the Italians choose to stop the Mare Nostrum project, then Malta would be flooded. Increasing tensions throughout the Middle East, and in this particular instance, Libya, will result in more and more migrants fleeing to European soil.

Prime Minister Joseph Muscat has also been discussing the possibility of turning Malta into an energy hub, between the Northern and Southern Mediterranean. On this topic, Energy Minister Konrad Mizzi had expressed hope that Malta would be a centre which would enable the flow of energy from North Africa to Europe. This came in light of the situation in Ukraine, however an unstable Libya could severely dampen this prospect.

Fears over Libyan airspace

Fears surround the closing of Libyan airspace would result in no flights in and out of the country, sources told this newspaper.

Air Malta, the country’s primary passenger carrier, offers regular flights to the war-torn country’s cities of Tripoli and Benghazi. In addition, closure of Libya’s airspace would need to see new evacuation plans and procedures put in place, including ones which would utilise sea transportation.

Medavia, a private flight company, operates certain flights to Libya including air ambulances, which have brought injured Libyans to be treated in Maltese hospitals over the past few weeks.

In additional to air carriers, medical groups are also in the fray.

St James Hospital Group runs a hospital in Tripoli, and a spokesperson told the Malta Independent last Monday that it is still operational, however running on a skeleton staff, with the majority of foreign doctors and specialists having returned home and no replacements entering Libya.

Director of International Operations at Saint James Hospital Jean Claude Muscat said that the situation in Tripoli is as has been reported in the media, with rival militias fighting and vying for power. 

Some staff, including the General Manager, chose to stay on in Libya, and if any patients are being treated, it is with the help of Libyan staff. The group stopped all foreign doctors visiting clinics in Tripoli a few weeks ago, and as such there are no specialists and doctors travelling to Libya at the moment.

Director at Saint James Hospital Maria Bugeja told this newsroom that St James Hospital in Malta is on standby, so if needed, the government can use its services in the same way that it did during the last Libyan crisis. Back in 2011, non-critical patients were sent to St James.