Tourist target 100,000 visitors short - hoteliers

Indicative figures for September and October will result in further drops of another 20,000 visitors on last year's figures by the end of October, the Malta Hotels and Restaurants Association said yesterday.

"Such a drop will mean that instead of expanding tourist numbers by 50,000 during 2006, in the first 10 months of the year, the figures will result in a drop of 50,000 visitors.

"This would mean the government is 100,000 visitors short of the established target," it said.

The MHRA said it is aware that the recently set up consultative group is nearing the completion of its recommendations which are expected to be made public in the coming weeks.

"Even at this early stage, the MHRA urges the government and everyone involved in the industry to implement these recommendations as a matter of urgency.

"It is only by doing this that the overall situation can be turned around in a relatively short time."

The association said it would like to make it abundantly clear that it never stated that low-cost airlines were the only solution to the industry's problems.

"The MHRA has always advocated that the problem is threefold - one of product improvement, the lack of a solid marketing strategy and the lack of diversity in airline capacity mix including the strong introduction of low-cost carriers to the island.

"The recent attacks on the wrongly termed 'low-cost at all cost brigade' by the Air Malta chairman - in an interview in The Times on September 23 - are not conducive to an industry working together towards flying the common flag, as that interview was in fact headlined.

"The MHRA could conversely attack the airline for heading the 'no low-cost at all cost brigade' and wholeheartedly hopes that this is not the first sign of an attempt by the airline to block ongoing tough negotiations with EasyJet and others to start operations to Malta and to increase the small amount of routes currently on offer," it said.

Unless more routes are opened up immediately to low-cost airlines, next year's figures will continue to decline with the relevant repercussions on the economy and employment.

The incentive scheme offered by the government was given on specific underserved routes and all airlines, including Air Malta, were invited to apply for such support. This, in MHRA's opinion, is definitely a level playing field.

The analogy made about a new international hotel chain or bar franchise opening up and being given government support for a promise to provide new tourists is simply puerile and does not even merit further comment, it said.

"The MHRA would like to categorically state that none of its council or task force members have any conflict of interest whatsoever in the low-cost airline issue.

"If the chairman of the national airline knows any different he should not intimate such but state names categorically.

"The MHRA is also surprised about the accusation of whispering in government's ear. The MHRA and its respective members can hardly be accused of whispering and if anything can only be accused of being vociferous," it said.

The MHRA said it is confused by the denial of Air Malta that it has reduced its presence on the Malta base when everyone knows that it has based a number of its aircraft outside the island.

"The fact that the national airline operated more flights out of Germany because Condor did not operate is positive and the fact that MTA financially supported the additional flights is also positive.

"However, the German market was still very much underserved this year and this only makes the case for a major low-cost airline presence from Germany stronger.

"The major cost of the tourist package today is the airline price and statistics show that any money saved on airline tickets is spent within the destination with the obvious resultant effects."

"The association cannot but strongly emphasise the importance of getting our act together collectively to sort out our product issues, put an immediate marketing strategy and plan into place and lower the cost of landing an aircraft in Malta so as to attract more airlines to the island."