Hoteliers' document on low-cost carriers in the pipeline

The Malta Hotels and Restaurants Association is planning to issue a document outlining its official stand on the operation of low-cost airlines to Malta, MHRA president Justin Zammit Tabona said.

Mr Zammit Tabona was asked about the situation with regard to Ryanair which, he confirmed, was still interested in operating to Malta and was awaiting feedback from the Maltese authorities.

The MHRA had announced in December that Ryanair would have talks with the government. The association had highlighted that the airline would bring to Malta up to 50,000 tourists a year and that travellers would be prepared to spend more on accommodation and dining experiences.

Although the MHRA was in favour of the introduction of low-fare carriers, it was also aware of the negative impact they would have, particularly on Air Malta and on scheduled flights, Mr Zammit Tabona said.

The adverse effects on the national carrier - "which would still be there in good times and in bad, while low-cost airlines may not" - could not be excluded and had to be taken into account, he said.

The market also depended on tour operators, which formed a major part of the tourism product and which would also be affected, he added.

In other countries, the impact was not as accentuated because the low-cost airlines did not operate to the major airports, Mr Zammit Tabona explained.

The situation, therefore, needed to be carefully assessed before an official stand was taken. While the short term effect was positive, it was the long term that had to be analysed, Mr Zammit Tabona said.

Among the benefits, on the other hand, was the possible and considerable influx of tourists to Malta. Low-cost airlines would also help the conference and incentives market, rendering it more competitive, while boosting the shoulder months, which needed to be focused on.

Deloitte & Touche are being commissioned to draw up the document, which, once complete, would allow for a better understanding of the situation and the effect low-cost carriers would have on Malta and its tourism industry.

Mr Zammit Tabona augured that the Malta Tourism Authority, Malta International Airport and Air Malta would also be making known their stand on how to tackle the situation of low-cost airlines shortly.

The idea would be to discuss the document with the three entities to ensure they are aware of the industry's views, he said, adding that every avenue had to be studied.