For the second consecutive year, Israel’s ambassador Gideon Meir has called for the introduction of a Malta-Israel direct air link (TMIS, 18 May). Unfortunately there seems to have been no reaction, as Malta could profit from such a route.

Having already briefly explained the potential for route development (STOM, 4 March 2007, TMIS, 9 December 2007), it will be discussed here in more detail. On this route, also outgoing (religious) travel could be a noteworthy factor to increase viability.

Volumes

A weekly capacity of 280 seats one way (two Air Malta A319s) would mean circa 14,500 arrivals if run year-round. If a load factor of 75 per cent on average should be achieved, for a year-round service one must find 10,900 return passengers.

While incoming tourism must be the priority, outgoing tourism here could help build up the route. Religious tourism is a major factor for destination Israel. How big is the Maltese outgoing religious tourism market?

Outgoing religious tourism

Currently, one flies about 4000-4500 return passengers (charter) per year to Lourdes, primarily during summer schedule. San Giovanni Rotondo/Padre Pio (nearest airport is Foggia, but Air Malta uses Bari), and Santiago de Compostela (Air Malta non-stop charters, plus DIY transits via Valencia/Ryanair) are other religious charter destinations, though less popular. Some Rome passengers might be religious tourists, while maybe a few passengers headed for Ireland might also be combining visits to religious places with a city trip or

outdoor activity.

How about Israel flights?

Air Malta ran scheduled flights during the 1990s. In 1998, an April to October service carried 5000 return passengers, in 1999 it went up to 5500, and in 2000 to almost 6000, bilaterally sourced. In neither countries was spending power what it is today, there was no big marketing activity, yet still two weekly seasonal flights worked.

Volume was severely battered with the new intifada following the events surrounding Ariel Sharon’s visit to the Temple Mount in late September 2000. Consequently, 2001 figures plummeted by 66 per cent to 2000 returns and then came 9/11.

Only lately has Air Malta resumed sporadic charters, with a prominent one carrying the pilgrims accompanied by Archbishop Cremona earlier this year – booked to the last seat (TMID, 9 April). The religious outgoing tourism market is thus not too small.

The current fare environment

A few might already be travelling bilaterally. Could a non-stop run by Air Malta, Sun d’Or (El Al’s leisure division), Arkia or Israir compete? Quoted below are dollar figures for possible easier comparison with Israeli carriers’ websites.

Checking towards the end of May for a Malta-originated flight in one month’s time on popular website Travelocity connected to booking system Sabre for a check-through flight, Lufthansa has the cheapest deal (costs ca. $1,400, 13 hours, via Germany), while the fastest connection, with Emirates and Cyprus Airways (seven hours via Larnaca), starts from $2,600 per person. With the two flight pairs booked separately, DIY transit, possibly with less convenient timing, one pays $820 (only just over half of this is the Emirates share), so roughly $500.

For an Israel-originated return, check-through, one pays $800 with the cheapest (combining El Al and Air Malta), taking 13 to 15 hours, Alitalia (nine hours) costing $1,100, while the faster (eight hours) Cyprus Airways/Emirates combination starts from $1,300. Is Emirates a realistic choice for Israelis due to the UAE’s political stand? There seems a stark contrast to Turkey, very popular with Israeli tourists and with quite a few carriers operating several flights a day.

Comparing above fares to Air Malta’s average fares for similarly long non-stop sectors, or Israeli carriers’ offers (Tel Aviv-Berlin return including all charges is €320, distance roughly 50 per cent longer), same booking dates, the competitiveness of fares issue seems clear. True, competition from other destinations remains.

Over the years, presumably some demand has built up locally for Holy Land pilgrimages. True, volume to alternative religious tourism destinations might suffer.

Tel Aviv area has an area nicknamed ‘Silicon Wadi’, possibly generating some limited related bilateral business/academic traffic. Furthermore, Israeli investors increasingly look at new EU countries.

Incoming tourism

What will remain most important is incoming tourism.

All other Euro-Mediterranean countries profit from Israeli tourists. Malta is roughly just half way from Tel Aviv compared to some Spanish destinations currently linked. True, many destinations are better for relaxation holidays than Malta, and some might even with a non-stop still be faster and cheaper to reach (Turkey, Greece, Cyprus), but Malta offers an interesting combination:

• many activities and sights within short distance

• an English-speaking environment

• communicative people

• the charm of a small island State

• impressive historic architectural assets/ambience

• a comparatively good and inexpensive public bus infrastructure

• the nightlife scene for younger tourists

MTA should do some marketing and invite media teams, coordinated with Israeli tour operators; carriers should not be left alone. One has a densely populated target area. Apart from those attracted by the above major selling points, there are also some special niches that could help increase volume.

Niche segments

During the past legislature the government worked on developing non-seasonal gambling tourism; facilities are located in Malta’s major tourist zones. In contrast, gambling in Israel is illegal, which helps curb this money drain (money gambled away cannot be spent/saved/invested or otherwise by the respective consumer, besides the social costs). But the massive volume (and money) flying abroad led to debating about permitting casinos, particularly pushed forward by the tourism minister hoping to re-channel trips abroad into domestic tourism. Whether one could count on this depends on a number of factors.

As regards scuba diving one avoids tough competitor Egypt, though Euro-Med competitors will not vanish.

Language learning tourism should have quite some potential in it.

Carrier support

Malta International Airport should include Tel Aviv in its charge reduction programme.

A Malta route would certainly mean primarily Israelis travelling to Malta. Outgoing tourism will logically get no Israeli financial support. Yet Israel could also profit from Malta, proportionally stronger than other places for incoming religious tourism. So one might see a bit of help for advertisements in Maltese media, familiarisation trips and so on.

Advantages for and of Air Malta

A Tel Aviv route might see more realistic revenue per passenger kilometre than what Air Malta currently achieves on other routes, particularly those where they have to compete against highly subsidized parallel flights. At the same time one would still offer customers far lower fares than the present ones. Operating partly during the night could increase aircraft productivity.

Contrasting Arkia, with 270 seats, or Sun d’Or, with 210 seats, Air Malta, with 140-170 seats, could offer two flights per week (for three- or 10-day trips) at a lower marketing risk. Israir, like Air Malta, has Airbus A320s, but no A319s. Marketing cooperation is also an option: Israir sells Israel flights of, for example, Croatian carriers through their website

www .israirairlines. com.

In any case: no tour operators (either side) involved, no group trips (Maltese Church/affiliated organisations), and no being open to both Israeli and Maltese bookings – no flights.

Certainly, the Israeli market is vulnerable, but it is running robustly now. An innovative diversified sourcing map is important for destination and carrier to offset risks of regional economic slowdowns and the normal cyclical problems faced in source markets when interest there moves on to the next destination.