The MHRA meeting questioned policies on tourism. Photo: Chris Sant Fournier

Malta Hotels and Restaurants Association president Tony Zahra questioned yesterday why the steady increase in tourist arrivals had seemingly not improved Air Malta’s bottom line.

Speaking at the MHRA quarterly review meeting, Mr Zahra said that with the airline still posting heavy losses, the €230 million invested in Air Malta’s restructuring plan could have been better spent. “It’s a massive amount of money, and somebody needs to be held responsible,” he said.

Air Malta is in its last year of a restructuring plan agreed with the EU and must break even by March next year. Last year, the airline posted €16 million in losses.

Mr Zahra addressed the growth of private accommodation services like Airbnb, which he said represent a major threat to the hospitality industry. He explained that, as had been observed overseas, more tourists are opting for private accommodation and staying longer than in collective establishments.

Comparing the shift to the rise of low-cost airlines in the past, Mr Zahra pledged that the industry would not “sit back and play dead” and called on the government to ensure a level playing field for businesses.

“If we have to pay licences and comply with safety and fire regulations, then so do they. Otherwise they are being given an unfair advantage,” he said.

It’s a massive amount of money; somebody needs to be held responsible

Describing the hospitality industry as a major pillar of the economy, Mr Zahra said the government could do more to improve tourists’ experiences. Referring to ongoing works in Castille Square, he quipped that tourists must wonder whether they have landed in “some IS country”.

He also said that while the recent reduction in energy tariffs was welcomed, the MHRA would be pushing for further cuts since oil prices were down and efficiency in energy generation was up.

Deloitte representative David Bonnett explained that the figures for the first quarter of the year show an improvement in the hotel sector, as tourist arrivals continued to grow.

Driven primarily by significant improvements in occupancy, the four-star and five-star sectors recorded first-quarter profits for the first time in five years. “This is a significant milestone which signals a potential reduction in seasonality,” he said.