Prime Minister Joseph Muscat has said he would consider "pulling the plug" on the negotiations between Alitalia and Air Malta if the sale is not favourable for the airline and the government's interests in a pre-budget meeting with the Malta Hotels and Restaurants Association.
Dr Muscat Minister was replying to comments made by MHRA President Tony Zahra, who stressed that the national airline needs to remain a key contributor to the tourism sector and the wider Maltese economy.
This stems for the fact that Air Malta may no longer be the market leader with Ryanair projected to have the largest share of incoming passengers to Malta. Muscat did say that if the sale did not come to fruition he would seek alternatives which would allow Air Malta to stabilize and grow.
The meeting, which presented the MHRA's official pre-document for 2017's budget, also highlighted the growing concern in Malta's infrastructure, with the Prime Minister stressing the importance of viewing future infrastructural development in larger terms than the residential population, adding that Malta experiences a much larger population during tourist high season.
Dr Muscat also spoke of the master plan for the development of Paceville, maintaining that this long term vision is the first of its kind. He encouraged the MHRA to put forward any comments and suggestions to the project.
There were also talks of plans for the management of public spaces which will be formally introduced within the coming weeks.
The Prime Minister highlighted Comino, were he said that the government will be looking for a permanent solution which would transform the island into the public space that is seen on brochures and advertisements.
The official pre-budget document entitled 'Creating Shared Values' puts forward the idea that the Government along with Social Partners should use the industry as a "catalyst to reconnect company success with social progress". The association firmly believes in the prioritization of environmental and infrastructural improvement.
The Prime Minister, who described the relationship between the government and the MHRA as "two-way traffic," added that while these needed to be introduced, businesses should still be able to reap a profitable return on investment.
The MHRA praised Public Private Partnership initiatives as an important facet of the development of the industry and suggested that its promotion would facilitate its continued growth. Mr Zahra also expressed interest in the encouragement of further investment specifically within ITS, in order to create more skilled persons for the industry.
Mr Zahra also highlighted concerns regarding the growing amount of unlicensed accommodations on the islands. He explained that in spite of the growing numbers of tourists entering Malta, the number of persons staying at hotels has decreased. It was suggested that regulatory bodies should enforce taxes in order to level the playing field.