The Malta Chamber today unwillingly acknowledged the result of the British vote for a Brexit. This is certainly a defining moment in the history of the United Kingdom and the European Union – a development that has been described as being of “seismic” proportions.
This morning, the European Union has received a wake-up call from the British people. The EU must ensure that it seriously takes into account this message for change.
The Brexit earthquake is certainly creating much dust and uncertainty in the markets, as investors, entrepreneurs, traders and workers attempt to seek answers and renewed confidence. This historical development calls for rationality and sound decision making, restore stability and confidence in the shortest possible time. Historical experience shows that in amongst the threats and negative repercussions of significant events, there will always emerge some opportunity which Malta and our business community must seek to pursue.
The Malta Chamber represents locally-based entrepreneurs that are optimists by nature. In this vein, therefore, the Chamber is hopeful that trade between Malta and the UK will always find a way through and that the Maltese business community will prevail over this development – as momentous as it may seem on this significant day in economic and political history.
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Possible challenge to Malta’s tourism industry - MHRA
The Malta Hotels and Restaurants Association (MHRA) noted the results of the BREXIT referendum and is currently discussing with the Ministry of Tourism with a view to address possible reactions to the results that may impact the Maltese tourism sector.
Tourism from the UK represents 30% of the total number of visitors to Malta, contributing just under half a billion euro in 2015 to our economy. MHRA President Tony Zahra states that, “The Brexit results represent an important development in world politics and economics which will have an impact on Malta, including the tourism sector. From a basic economic perspective a weaker sterling will get less euro for its pounds, so it will be more expensive for the British traveller to holiday outside UK. But it’s more complicated than that, especially in terms of British holidaymakers’ behaviour. Past experience has demonstrated that demand for overseas travel by the British traveller is price sensitive. However there are other issues which need to be considered such as the impact on the freedom of the skies and its effect on airlines including Airmalta, travel insurance policies, and the general impact that may result as a result of instability.”
Towards this end MHRA will be organising a seminar next week addressing these matters and accordingly what needs to be done to ride the wave. This initiative is being supported by the Ministry of Tourism. For more information refer to www.mhra.org.mt.