Friday, 29th August 2008
Tourism authority planning ways to counter 'tough' winter
The Malta Tourism Authority is working hard to mitigate a projected shortfall in airline seat capacity of 25,000 during the winter season, with three airlines having already dropped routes.
The MTA's strategy is to increase the characteristically low load factor on flights in the shoulder months.
CEO Josef Formosa Gauci is predicting a "tough" winter season for the industry, following a positive 18 months.
However, he sees the loss of 25,000 seats as the "worst-case scenario", saying that the projected decline should be countered by the authority's strategy to increase the load factor.
So far, Ryanair's Valencia route will not be operating for six weeks in winter, Germanwings will be dropping its twice weekly flights from two German airports and Air Malta has said it will not be operating its twice weekly flight to Glasgow.
"One has to see," said Mr Formosa Gauci, referring to the Glasgow route, adding that the MTA is in discussion with airlines to determine other ways to counter any potential loss in seats. Among the options is the opening of more routes.
Although the possibility exists, due to the increased cost of aviation fuel, Mr Formosa Gauci said he did not think other airlines would drop flights.
On a one-off occasion, MTA directors asked Parliamentary Secretary for Tourism Mario de Marco to join its recent board meeting to discuss the scenario that is looming on the horizon.
The strategy to increase load factor is through more contact with tour operators and more direct marketing in the areas where flights are still operating, Mr Formosa Gauci said.
Marketing efforts would, for example, be boosted in Leipzig and Hamburg, he said.
"The upcoming season is not going to be as easy as the last 18 months, bearing in mind also the fact that the UK is in recession.
We are entering a cycle that is not as easy as the last, but we are working pretty hard on the matter in the hope that we will be able to counter it completely," Mr Formosa Gauci said.
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Comments
Malta is not losing competitiveness. Its actually the tourism industry that is starting to lose its attraction especially in the off peak season. The effects of the increase in cost of fuel is taking place all over the world. Most international airlines have adopted the surcharge policy. The break even line of ALL world hotels has increased. Fuel for ALL taxis and minibuses all over the world has increased. Hotel employees ALL over the world got higher renumeration (yes even in Malta). All tourism related services have increased in prices etc etc.
The real issue, however, is fear about the future and not knowing what price per barrel 2009 will bring.
The UK policy against the EURO currency is starting to hit them hard. The current recession is one of the side effects. Hard times for hard heads!
I have close relatives living in UK and they say Malta has become too expensive
to visit.
Qabel l-elezzjoni kollox kien miexi fuq ir-rubini!