MHRA stresses need to keep Air Malta as the national airline

The Malta Hotels and Restaurants Association (MHRA) presented the BOV/MHRA hotel survey report for the fourth quarter of 2011. The report, compiled by Deloitte, illustrates that 2011 left a "positive mark in the local tourism industry."

In his address, the MHRA president, Tony Zahra made reference to a media report which appeared this morning on the possible sale of some Air Malta slots and the removal of some of the current routes serviced. Zahra however said that he held three discussions with important stakeholders and he was reassured that no slots will be sold off and there will be no changes to the destinations the airline flies from.  "It is strategically important that Air Malta remains the national airline," Zahra stressed.

Zahra also underlined the importance of making Air Malta "efficient and profitable again." He said the MHRA is certain that the restructuring plan for the national airline can be achieved if Air Malta is "hived off from political pressures." Zahra also pointed out that MHRA is against the full privatisation of the airline as this would lead to a loss of control. He proposed a model similar to Bank of Valletta in which Zahra said, the government has a minority stake and the company operates independently of political pressure.

Zahra said that despite the Libyan unrest and the international economic crisis the tourism industry registered growth. Zahra described the growth as a "commendable achievement by all stakeholders who were actively involved in the process of stimulating increased seat capacity leading to increased demand."

The report shows that when compared to 2010, last year growth was achieved in arrivals, guest nights and tourist spend. The sharpest increase was achieved in tourist spend with an 8.8% increase. Arrivals were up by 5.6% and nights increased by 5.6%.

 "Significantly this success did not only benefit the hotels but many others. Indeed, the positive results achieved in 2011, delivered over 100 million of incremental tourist expenditure," said Zahra. He added that most of this increased expenditure benefitted airlines, restaurants, transport providers retail operators and other service providers.

Looking ahead, Zahra said that 2012 will be a challenging year. The MHRA president explained that the industry must be more sustainable. He envisages a situation where "the investment provides sufficient returns to the stakeholders as well as ensuring continuous investment in the properties."

Zahra listed two main challenges for 2012; to retain or increase the numbers of 2011 and to resist attempts to reduce room rates as this would affect revenue.

According to Zahra, investment in marketing and accessibility related strategies are the key to overcome these challenges. He also underlined the importance of using different media and creating a more recognisable identity to maintain growth.

Zahra said that the MHRA has always believed that tourism is the key driver of the Maltese economy and stressed the importance to "continue nurturing this tremendous industry which has brought so much economic and other benefits to our islands."