In what is essentially a parachute payment to prevent it from crashing and burning, Malta’s beleaguered national airline is to receive a €20 million cash injection, with more to come once a final agreement with unions and workers is reached.

The figure will come as little surprise to those with a keen eye on the airline’s financial woes. Last June, a draft restructuring plan estimated that the airline would need a €25 million government subsidy, following the €52 million given to rescue Air Malta last year.

Air Malta’s subsidy was the most eye-catching tourism-related figure Finance Minister Tonio Fenech’s budget, but it was not the only one.

With tourist arrivals, tourism nights and tourism expenditure all up between January and September when compared to 2010, Mr Fenech described 2011 as a “very successful” year for tourism, although the twin threats of the financial crisis and upheaval in the Arab world both posed dangers to Malta’s tourism sector.

The Malta Tourism Authority emerged happy, with its budget increased by €1 million to €36 million. Some €4.5 million is to be spent on the development of new air routes, with a further €3 million to be spent on marketing.

For the first time ever, Gozo is to be marketed as a separate tourism destination, with €500,000 allocated to this pilot scheme.

Acknowledging that the licensing scheme for Gozitan tourist farmhouses requires revision, the government will be launching a consultation process on how to revise licenses with stakeholders over the coming year.

Tour operators will continue to receive financial support in their marketing activities, with €10 million allocated to such projects. The first set of such projects have already been approved.

Infrastructural projects aimed at bettering Malta as a tourism destination will receive €4.2 million in funding. The Budget made specific mention of two such projects: the Aquarium project in Qawra, which was announced several years ago but has yet to get underway, and Pembroke Gardens. Works on the latter have already commenced.

Malta’s rich archaeological history will also receive a financial leg-up, to the tune of €4.2 million. Although yesterday’s budget speech did not go into specifics, part of the funds are expected to be used for the construction of a canopy to protect the ĦalTarxien temples, following a call for tenders issued some months ago.