Earlier today the MHRA released the BOV MHRA Hotel Survey by Deloitte for the third quarter of 2010. MHRA President Mr. George Micallef said that the industry was encouraged by the strong performance registered in summer 2010 and believes that the results are a ‘feather in the cap’ for all those who championed the cause of increasing seat capacity from underserved routes. Whilst clearly satisfied with the improving trends in arrivals, Mr. Micallef believes that further effort is required to secure a level of operational performance which consistently exceeds the thresholds required for a viable and sustainable industry.

Mr. Micallef referred to Air Malta and the related seat capacity issue for next year as a major concern and perhaps as the biggest challenge the tourism industry has ever faced, adding that “When one considers the significant impact the increase of around 125,000 tourist arrivals this year had on the industry and indeed the economy, it’s easy to understand why we are so concerned.”

Referring to Air Malta’s decision taken 9 weeks ago to cancel 38,000 seats on the UK market, Mr. Micallef said that since then, we have not managed to replace a single seat, and that this has far reaching implications on the very important UK market.

Mr Micallef said that the MHRA feels frustrated that the industry stakeholders are being left in the dark as to what is happening, and said he cannot understand why the Minister for Tourism or MTA are not directly involved in the decision making process or sit in the steering committee for Air Malta. “We would like to think that the Air Malta’s rescue plan is not only for the airline, but also for the tourism industry, which represents the livelihoods of thousands and massive investments of local businesses, and the economy at large.”

“To date we have not been informed of any developments, not by Air Malta or MTA, or anyone else for that matter, much less engaged in any talks affecting the future of our industry. I feel that we all need to be consulted.” Mr. Micallef said. MHRA has always refrained from saying how Airmalta should be run, but it always said that it expects to be kept abreast of decisions that affect its interest in such major way.

Notwithstanding the considerable volume and rate gains registered so far this year, hotel profitability on a year-to-date basis has remained 15% below the average registered in 2007 and 2008. Increasing energy costs have continued to be a major issue for hoteliers and have eroded up to 24% of the revenue gains registered.

Although NSO reports indicate that tourist expenditure has continued to increase exponentially, hotel average achieved room rates remain under pressure and below 2008 levels. These results also indicate that a substantial portion of the increased tourist expenditure is actually filtering down to other economic operators and not to hoteliers. The MHRA called for a more comprehensive analysis on the additional tourist spend.

The MHRA is committed to support strategic decisions which would lead to increased capacity from under- served markets and which would enable Air Malta to retain the pivotal role that the national carrier has played in the economic and tourism development of Malta. Mr Micallef concluded. George Micallef President.

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