Talks with a potential strategic partner for Air Malta would only continue if it was guaranteed the national carrier would retain its characteristics, Tourism Minister Edward Zammit Lewis said yesterday.
The airline had to remain Air Malta, Dr Zammit Lewis stressed as Parliament started debating the Budget 2016 yesterday. He acknowledged that the national carrier needed a strategic partner adding that the government was determined to ensure a successful conclusion to the airline’s restructuring exercise notwithstanding the ever-increasing competitive environment and the significant and difficult challenge this posed.
The minister expressed appreciation at the Opposition’s responsible attitude throughout the debate in this regard.
Opening the debate on the Tourism Ministry’s financial allocation, Opposition spokesman Antoine Borg acknowledged the positive results being registered in the sector. Such positive developments stemmed from improved connectivity, a better tourism product, more effective marketing and investment in the human resources undertaken over the years by different administrations. The challenge now was to create a fresh impetus, leading to initiatives that yielded fruit in the medium term, he said.
When discussing the environmental contribution (bed tax) introduced in this Budget, the debate centred more on how the system would be administered rather than on its introduction. There was general agreement it would not scare away potential tourists.
Robert Arrigo (PN) voiced concern about its impact on Malta’s competitiveness, possibly increasing net charges by four per cent. It could also end up being “anti-business”, dragging the country down in the internet search engines.
The national carrier needed a strategic partner
Mr Borg and Claudio Grech (PN) asked for more details on how the money would be collected having the least burden on industry. Its administration should be transparent, according to published and clear guidelines, possibly involving the local authorities.
MPs agreed the goal should be that of moving away from a three-star environment just outside five-star hotels and alleviating any negative impact on local communities.
Silvio Parnis (PL) stressed the importance of the south benefitting more from tourism.
The industry should consider venturing in new areas and Joe Farrugia (PL) suggested halal tourism that required a particular type of infrastructure.
The debate, described by Dr Zammit Lewis as “mature”, was marked by instances of consensus between the government and the Opposition.
MPs from both sides felt government policy should seek to manage the number of arrivals rather than limiting it whether in terms of the seasonal level or the geographic spread. Likewise, it was agreed there was need for the continuous upgrade of the infrastructure. A holistic and long-term approach was necessary to address the challenge in a meaningful way.
The decline in the average income of employees in the industry, when compared to the national average wage, was identified during the debate as a worrying trend because it risked making such an economic activity less attractive. The government and the Opposition agreed that the continuous development of human resources was crucial to address the issue.