The recent good news about tourism - and the hotel industry more specifically - was countered by bad news about the possible loss of flights and capacity from the UK. BritishJet is opting for 30,000 seats on Air Malta as from March while GB Airways, which operated British Airways flights to Malta, has been sold to easyJet and it seems that easyJet will serve the Malta-London route.

The context to this is very important. This year is shaping up to be the best ever for arrivals, with an increase of 10 per cent for the first 10 months. This needs to be countered by the fact that arrivals are coming for shorter visits. However, in spite of the advent of low-cost airlines, spending has also remained robust. It was up by 6.9 per cent in the first 10 months of the year, after years of lacklustre growth that barely kept it above inflation.

It was particularly good to note, during a recent presentation by Deloitte for the Malta Hotels and Restaurants Association, that occupancy levels in Maltese hotels were actually higher that those in Cyprus and Mallorca. When numbers were dropping, it took courage to throw out the changes that had been made by the Malta Tourism Authority and start again. And what about the prophets of doom who "welcomed" Ryanair's arrival in Malta? The government dug deep into its pockets and agreed to play the game, shelling out not inconsiderate sums to get things - literally - off the ground. Malta International Airport offered its own incentives too.

Will Malta need to resort to subsidies and incentives, by whatever name they go, to keep the British routes? Or is this a golden opportunity for Air Malta, which counts many of its 10 UK routes among its most profitable? No doubt, sums are being done at this very moment. There is no reason to assume that the usual formula will fail Malta: If there is demand, someone will supply.

Back to the hotel industry. Not only were there better occupancy rates but also better room rates. This is where external factors come into play. Hotels can charge more if they have better facilities but they can also charge more if there are better facilities outside it. When the MTA forecast that Malta would recoup its investment in St George's Bay, for example, the figures were greeted with scepticism - but it is turning out to be correct. The saying that you need to sacrifice a few eggs to make an omelette is quite apt in this respect. The paving of Valletta could make a significant difference to cruise passengers in the medium- to long-term. Every drop counts.

It is easy to be complacent. It pays to bear in mind that this country did not attract 103,000 new visitors but actually a million of them. As Tourism Minister Francis Zammit Dimech never fails to point out, every year Malta starts with a zero balance, so to speak, even if timeshare is ensuring a small measure of repeat business. It is to Malta's credit that over 30 per cent of our visitors return.

A look at the figures released by the National Office of Statistics indicates a 24 per cent increase in the number of tourists under the age of 24. This makes it imperative that places of entertainment remain safe and pleasant and not tacky and squalid.

But more needs to be seen to: Rebuild rubble walls and fortifications, curb illegal activity of any kind.