MHRA writes to Commission stressing importance of Air Malta

The Malta Hotels and Restaurants Association has written to the European Commission to stress the importance of Air Malta for the sustainability of the tourism industry, economic growth and Maltese society's wellbeing.

The MHRA told the Commission that the tourism industry in Malta directly accounted for 10% of the country's gross national product; 14% of the government income; 10% of employment; and six per cent of imports and outflows.

It said that when other indirect impacts were taken into account, these figures increased to 29% of GNP, 33% of government income, 29% of employment and 16% of imports and outflows.

It stressed that the industry was 97% dependent on tourists arriving by air and Air Malta had a 55% share of those arrivals.

The MHRA further pointed out that a considerable amount of the remaining tourists were carried by low cost carriers and a lesser amount by other legacy carriers. Most of the Meetings,

Incentives, Conferences and Events business, which was of extreme importance for the winter business of four and five star hotels, was carried by Air Malta and this would be in great risk if the airline had to be stopped from flying.

In the above context, MHRA demonstrated that there is a direct correlation between the number of seats available and the number of tourists arriving in Malta.

"Indeed, any decrease of seats would have a negative impact on arrivals and consequently on the economy of Malta and government income from tax thereby risking increasing government's deficit."

MHRA also pointed out that the share of the European air transport market of Air Malta was below half per cent and consequently the survival of the airline did not pose any risks to competition in the air transport market.