Ryanair to axe Bremen, cut frequencies

Mosta, 28/05/08 - Ryanair plans to axe its Bremen-Malta service this coming winter, it also intends reducing frequency from London's Luton and Nykoping, Sweden.

Island Travel Trader Online has learned that the Irish low cost carrier will discontinue its thrice-a-week service to Bremen, Germany, when the 2008/09 winter schedule is introduced. Island Travel Trader Online was also told that the Bremen service might not be operational in summer 2009.

The Luton service will be reduced to five frequencies a week over winter from the current seven. And, it is understood, the Nykoping service is also to be shaved from three to one a week.

Ryanair's sales and marketing manager for southern Europe, Alessia Viviani, had no comment to make as regards next winter's schedule. She told Island Travel Trader Online that an announcement would be made "in due course".

There are two reasons for Ryanair's services cutback. One, is the ever-rising cost of fuel that "threatens to make some existing routes unviable", as Viviani's predecessor, Bridget Dowling, pointed out last month.

And to drive the point home CEO Michael Cawley announced that Ryanair would "put 20 aircraft on the ground for the winter because it's more profitable. We would just lose a lot of money...burning fuel" if they remain operational.

Second, there is Ryanair's ongoing mantra about Malta International Airport's (MIA) charges being too high.

Despite its positive results since it introduced services to Malta at the end of 2006, "further growth or the establishment of a base is unrealistic in the absence of lower airport costs", said Dowling.

"Malta", she added, "has huge potential to grow its tourism product, however this requires vision from the Maltese government to lower airport costs and prioritise growth, choice and competition by opening up the island to the low fare revolution which consumers in other European countries have enjoyed".

MIA, for its part, maintains that its charges are reasonable and points out that its fees - passenger service charge, landing fees and security levies - have not changed since 1 April 2006 "and will not be changing in 2008". (See MIA raises passenger and landing charges.)

"Given that these charges have not been, in any way, increased since the commencement of Ryanair's operations to Malta, MIA cannot acknowledge any correlation between its charges and Ryanair's considering to reduce their capacity on Malta", read a MIA statement.

Meanwhile, to ensure that the low cost carrier does not pull the plug on Malta, the Malta Tourism Authority has renegotiating its financial incentives package with Ryanair, Island Travel Trader Online has learned. However, it is understood that as part of the new agreement low performer Bremen would be removed from the timetable and that some services would have to be slashed. An official announcement is expected in early June.

Tourism operators to discuss revision of the EU's package travel directive

Valletta, 23/05/08 - The European Commissioner responsible for consumer protection, Meglena Kuneva, will open the 97th bi-annual meeting of the European Travel Agents' and Tour Operators' Associations (ECTAA), slated to be held in Sofia, Bulgaria, on 27 and 28 May. Officers from Malta's Federated Association of Travel and Tourism Agents will attend the conference, whose theme is the revision of the EU's consumer protection legislation.

Over the past 20 years, various Brussels-inspired directives on consumer protection, usually referred to as the EU consumer acquis, have granted specific rights to consumers concerning among others timeshare and package travel.

The package travel directive is of major importance to members of the ECTAA and their customers. The directive aims at protecting consumers who buy travel packages by ensuring that they get proper information before and after their purchase, that the services included in the package will be performed according to the contract and if not, that appropriate remedies are provided. But most importantly, consumers benefit from a financial guarantee against the bankruptcy of their package travel provider. 

ECTAA says it welcomes the review of the acquis because it is essential that EU legislation is adapted to current and foreseeable market developments in order to ensure effective protection of consumers as well as fair competition within the EU. In particular, it is important that the obligations resulting from the consumer protection legislation is extended to all providers who sell in their own name any form of combination of travel services.

Says ECTAA president, Jan Van Steen: "In recent years there has been a shift in consumers' buying habits. Many continueto buy their package holidays, but an increasing number of them buy separate travel services from various providers. It is therefore essential that all consumers benefit from the same protection whatever their booking channel and that all providers operate on a level playing field".

MTA launches scheme for DMCs not to 'bump off' clients

Valletta, 22/05/08 - The Malta Tourism Authority has responded to the passing of the UK's Corporate Manslaughter Act with an internal education and development programme for destination management companies (DMCs) to keep Malta at the forefront of the British meetings, incentives, conferences and exhibitions (MICE) market.

This legislation, that received royal assent in July 2007, means that event organisers have to "seriously" consider their policies and risk management systems in their destinations of choice. (For details and significance of the act go to www.opsi.gov.uk/acts/acts2007/plain/ukpga_20070019_en.)

In response to the passing of the act, the MTA recently launched a new quality assurance scheme specifically aimed at the MICE market. "This will facilitate central regulations and more stringent quality control of all DMCs functioning in Malta, allowing event organisers to be confident in the product they are investing in", reads an authority press release.

 "While MICE clients are particularly selective, the implementation of the Corporate Manslaughter Act will give event organisers additional criteria by which to select the destination in which to hold their event; namely risk management", explains Suzanne Cassar Dimech, head of the MTA's meetings segment.

"Therefore, supplier credentials and third party liability insurance will become an increasingly important factor in differentiating Malta's MICE offer in terms of marketing and competitiveness", she adds.

As part of the process of in-house education, the MTA invited two industry specialists to speak at a conference last month. They were Andy Jarosz, operations director of UK-based crisis management firm Docleaf, and Chris Clarke, client services director at Britain's P&MM Travel and Events.

"With the onset of the Corporate Manslaughter Act in the UK, agencies will be increasingly aware of their potential exposure as a result of their suppliers' actions", Jarosz explained. "As a result, DMCs can expect a greater demand for information from agencies to show compliance to safety standards and regulation. Agencies will want to see that DMCs have the required safety systems in place to identify and manage their risks, and also that they have crisis management plans to assist their client agency in the event of an incident at an event. The MTA Quality Assurance Scheme is a very positive step in the right direction, and will further promote Malta as an attractive destination to the UK market".

Clarke, meanwhile, said "it is refreshing to see a destination taking its responsibilities so keenly and that these initiatives are promoted from the highest level. I found everyone attending the presentation to be very positive about the opportunities that this will open up, and it has to strengthen the case for agencies like ours to promote Malta, safe in the knowledge that health, safety and quality are of paramount importance to Malta's industry professionals".

Finally, the MTA's man in the United Kingdom, Chris Fenech, said Malta is committed "to providing the highest quality of facilities and care to the MICE market; we are very happy to be rolling out this scheme and ensuring that any companies looking to use the Maltese islands for an event can put their minds at rest that they are receiving high levels of service as well as protecting their employees, clients, suppliers and the public from any unnecessary exposure to danger".

More BA long-haul flights migrate to T5

London, 22/05/08 - BAA and British Airways have issued a joint statement to confirm that the first phase of the move of additional flights into Heathrow Terminal 5 will take place on 5 June.

These flights include services to and from New York JFK. The other seven destinations are Abuja, Bangalore, Beijing, Cairo, Cape Town, Lagos and Phoenix. British Airways flies eight times a day to New York JFK and provides a daily service on the other routes. All these flights operate currently from Terminal 4. Combined, they amount to about a quarter of the airline's Terminal 4 schedule.

The addition of these eight cities equate to another 15 departures and 15 arrivals daily from T5, bringing the total amount of long-haul flying in T5 to 30 departures and 30 arrivals everyday as from 5 June.

Willie Walsh, British Airways' chief executive, said: "As we announced on 11 April, we will move our Terminal 4 long-haul programme into Terminal 5 in phases. We have taken this decision in the interests of customers, who remain our priority at all times.

"Terminal 5 is now working well, and we are pleased we can confirm our plan to move in some additional flights on 5 June".

Colin Matthews, BAA chief executive, said: "I am pleased that we have reached this decision jointly. BAA and BA have worked together effectively to resolve the initial problems at T5, and to plan this next move".

Outbound travel up 27% in Q1

Valletta, 20/05/08 - An estimated 23,888 residents travelled abroad in March, an increase of 23.6 per cent over the same month last year. Not surprisingly, the majority, 90.1 per cent left the islands by air.

In the first three months of the year, meanwhile, 59,329 Malta residents left the islands, an increase of 27.1 per cent over Q1 of 2007, according to the National Statistics Office.

Of these 86.1 per cent travelled to EU destinations; the most visited being Italy and the UK.

In Q1, males travellers exceeded female ones - the former accounting for 59.6 per cent of the total. The largest proportion of outbound passengers, 49 per cent, comprised were aged between 25 and 44, followed by those in the 45 to 64 age bracket who accounted for 38.1 per cent of total Malta travellers.

Airlines consider valuing slots as assets

Mosta, 19/05/08 - Airlines are expected to bolster balance sheets by valuing their slot portfolios for the first time following a change in EU rules, reports the Travel and Hospitality Industry Digest.

Carriers operating from congested airports such as Heathrow, where a pair of peak time slots can fetch up to €38 million, are likely to include the value of their slots as assets.

This would help give a better picture of an airline's worth in the current climate of record high fuel prices.

Until recently, the EU refused to sanction slot trading between carriers on the "grey market", or to allow them to be treated as assets. However, due largely to the fact that Heathrow is full, it is now officially recognising such transactions.

Graham Pickett, aviation lead partner at Deloitte, said this meant that slots now had a legitimate value for accounting purposes.

"Under the grey market, it was not clear what the pricing was and the EU did not approve of slot trading”, he said.

"What the accounting rules say is if you can see evidence of an active market and it is all accepted from a legal point of view, then there is a mechanism for capitalising".

Deloitte believes listing the value of slots as assets will permit carriers to use them as security for borrowing.

Until now, if an airline acquired a new slot, it was capitalised on its balance sheet, but the value of legacy slots was not recognised. Deloitte expects some UK airlines will also start to represent the value of their slots in annual results.

"This answers the concerns of airlines that say that their balance sheet does not reflect their true value", said Pickett. "Every airline we have spoken to is calculating numbers".

At Heathrow, 99 per cent of the airport's 9,562 slots are held by legacy carriers, with British Airways accounting for 41 per cent worth €2.5 billion, according to Deloitte's estimates, BMI holds 11 per cent and Virgin Atlantic 3 per cent.

Deloitte estimates that of the one per cent of slots available to new entrants at Heathrow, most are unsuitable because of timing. The airport has the world's most expensive slots, followed by Paris Charles de Gaulle, Gatwick and Frankfurt.

Heathrow was the subject of a land-grab in the last year in the run-up to EU-US open skies, which saw US carriers pay heavily to gain access to the airport. Continental Airlines paid $209 million for four pairs of slots from GB Airways, Air France and Alitalia in order to start Heathrow services.

Pickett said it was unclear if the price would fall following the reshuffle but added "there has been some silly money paid".

Fewer visitors at Amitex 2008

Luqa, 08/05/08 - This year's edition of the Air Malta's International Travel Exhibition (Amitex), held during the last weekend of April at the Malta Fairs and Conventions Centre in Ta' Qali, attracted some 15,000 visitors - 12,000 less than in 2007.

The show, the 15th, saw the participation of several local and foreign companies who, over the four days of the fair, presented their summer travel programmes to the public.

Commenting on this year's show, Brian Bartolo, Air Malta's general manager marketing and product said: "Amitex has once again been a success. In terms of attendance our forecasts have been reached.

"Our latest special offer included the sale of 35,000 seats starting at €67 (which includes taxes and charges) to 26 destinations, our summer schedule and Flyaway Tours have been well received by the public.

"Moreover, the exhibitors have expressed satisfaction with the turnout and the new venue and were pleased with the amount of bookings received".

Consumers still being misled by online pricing

Mosta, 08/05/08 - One-third of consumers booking airline tickets online are being "ripped off or mislead and confused", according to the European Union.

Its survey of 386 travel websites revealed that 137 had to be followed up with enforcement action over the last seven months for breaches of EU consumer law, reports the Travel and Hospitality Industry Digest.

More than half have now been corrected, but the European Commission warns it will take further action if the industry does not clean up its act.

EU Consumer Commissioner Meglena Kuneva said: "It is unacceptable that one in three consumers going to book a plane ticket online is being ripped off or mislead and confused.

"This report shows there are serious and persistent problems with ticket sales throughout the airline industry as a whole.

"I hope operators have now realised the determination of the commission to act on behalf of consumers where it is necessary. My message to industry is clear: act now or we will act.

"We will need to see credible evidence of improvement to clean up these sales and marketing practices within the airline sector by 1 May next year or we will be left with no choice but to intervene".

The survey found many sites had multiple problems, with misleading pricing the biggest concern, identified in 58 per cent of those investigated. Other issues included irregularities in contract terms and non-availability of advertised offers.

Problems were seen right across the travel industry. Of the 79 sites being investigated for misleading pricing, 56 per cent were airlines, 34 per cent travel agencies/tour operators and 10 per cent others, such as price comparison sites.

The 137 websites under investigation represent about 80 companies, including big brand names and lesser-known firms.

The commission will monitor developments in the airline sector over the coming year and assess the need for further action.

Last May, the British Office of Fair Trading (OFT) told airlines to include all non-optional costs in their advertised prices and warned of enforcement proceedings against those failing to comply.

The Association of British Travel Agents (ABTA) also told the OFT that it will rigorously enforce its code of conduct against companies that do not comply.

Six per cent increase in April passengers at MIA

Luqa, 08/05/08 - In April Malta International Airport registered an increase of 6.2 per cent in passenger traffic on scheduled and non-scheduled flights.

The total passenger movements in April increased by 14,621 for a total of 251,548 movements as opposed to the April 2007 figure of 236,927. The seat capacity decreased marginally by 1.4 points but, on the other hand, the seat load factor rose by 5.1 per cent to an average of 70.8 per cent. Aircraft movements decreased from 2,337 in April last year to 2,236 last month. Incoming and outgoing cargo and mail handled at MIA was 1,565 tonnes, an increase of 13.7 per cent when compared to April a year ago.

From the three main markets, Germany registered the highest increase in passenger movements with an additional 14.2 per cent, the UK increased by 5.4 per cent and movements from Italy marginally increased by 0.4 per cent. Once again the Spanish market saw a hefty increase of 7,455 passenger movements when compared to April 2007.

As much as the Easter holidays partly attributed to the hefty increase in March 2008, likewise the comparatively slower growth in April 2008 was in part due to fact that this year, Easter occurred a month earlier than in 2007.

Meantime, MIA registered an increase of 109,219 passenger movements (up 16 per cent) in the first four months of 2008 and an increase of 503 aircraft movements on its scheduled and non-scheduled traffic. The seat capacity increased by 10.2 per cent whereas the average seat load factor also saw an improvement of over three per cent. Cargo and mail activity rose by 13.4 points during the period January to April 2008 for a total of 6,093 tonnes handled.

Passenger movements from the main three markets - the UK, Italy and Germany - increased by four points, 18.8 per cent and 33.7 per cent respectively between January and April 2008. The busiest day during this period was Saturday, 26 April with 11,455 passengers and 96 aircraft handled at MIA.

US issues Beijing Olympics travel warning

Mosta, 02/05/08 - Citing that "there is a heightened risk of attacks" during the Beijing Olympics, the US State Department has warned travellers that extremist groups might conduct terrorist acts within China "in the near future", reports Yusof Sulaiman in eTN.

With less than 100 days to go before the Beijing Olympics Games opens, the United States government's move has brought back the spectre of massacre at the 1972 Munich Olympic Games. "Any large scale public event such as the upcoming Olympic Games may present an attractive target for terrorists," the US State Department warned.

Warning US citizens to avoid participating in demonstrations, the travel alert also urged Americans who live in China or travelling there to be cautious in hotels, restaurants, on public transports and in areas of large public gatherings.

The State Department also warned travellers about "increased security" in Chinese airports. "There will be tighter restrictions on taking liquids, aerosols or gels aboard flights in carry-on baggage."

So far, as a result of increased security at Chinese airports, two Canadians and a British citizen have been barred from entering Hong Kong, and put on return flights, according to latest news reports.

Nepal tourism ministry officials, too, confirmed that a US mountaineer named William Holland was expelled from Nepal for violating regulations. He was found at a Mt Everest base camp with a banner that reads "Free Tibet." Holland has been banned from mountaineering activities in Nepal for the next two years.

Protesters and critics of the Chinese rule over Tibet have targeted the Olympic torch run around the world, which the Chinese say is symbolic of its rising status and pride as host of the Olympics in August.

Beijing authorities confirmed that they are currently "fine-tuning" Games preparations to include media services as well as environmental contingency plans devised to improve air quality during the sports meet.

Aiming to turn the event into a "People's Olympics", the Chinese government has spent $42 billion for the event, including improving infrastructure such as building a new airport terminal and subway lines.

Cruise liner traffic down 45% in Q1

Valletta, 01/05/08 - In March 6,166 cruise liner passengers stopped in Malta, a drop of 9,275 when compared to March 2007. And only four cruise ships called at the Grand Harbour during the month, the National Statistics Office reports.

Total cruise passenger traffic totalled 10,823 in Q1, a slump of 45.6 per cent over the same period last year.

Excursionists from EU countries accounted for 91.1 per cent of the total traffic in the first three months of the year, with the principal markets being Germany, Spain and Italy.

On a gender basis, males exceeded female by 26 per cent. The largest proportion of passengers - 38.4 per cent - comprised were aged between 60 and 79 years, followed by those in the 40 to 59 bracket who accounted for 31.6 per cent of the total.

There were only six liner calls in the first three months of the year.

KM announces new CDG frequency for 2009

Luqa, 01/05/08 - Encouraged by the double digit growth registered on its French routes last winter, Air Malta plans to introduce a four times weekly frequency to Paris's Charles De Gaulle (CDG) airport early next year.

This service will complement the daily operation to Orly. By servicing the French capital's two airports, Air Malta "expects to mirror its success on the London market where it serves the three main airports of that city".

"This is more good news for our customers and local hoteliers. With the new Paris service Air Malta is ensuring that it is offering the most convenient schedule to the Maltese islands from both the Paris inner city area and also from the suburban areas, with a potential market of over 10.5 million people. Our clients will now have a choice of airports in Paris depending on their travel requirements", announced Brock Friesen, chief officer commercial of Air Malta.

"In summer 2009 the airline will be floating an additional 30,000 seats on Charles De Gaulle to complement the 60,000 floated seats on Orly. This summer we have added a third weekly flight to both Lyon and Marseille and in the first month these routes generated a 47 per cent and 96 per cent increase in passengers respectively.

"The French market has responded very well to both our and the MTA's aggressive advertising campaigns in France. We have focused on the short break market segment and the extension of our traditional summer season to include off-peak months. Last year our winter 2007/08 marketing efforts kicked off in May and continued aggressively in the following months. Through this investment we registered an overall 25 per cent increase in passengers from France. The new airport and additional frequencies to Paris are expected to continue generating positive results for the airline to and from the French market."

Air Malta is currently waiting slot timings clearance from CDG airport authorities and expects to welcome the first bookings on this new service in July 2008.

Paris Charles de Gaulle Airport is the largest airport serving Paris and the second busiest passenger airport in Europe after London Heathrow. The airport is located 23 kilometres north-east of Paris and is also considered one of Europe's main gateways to the United States and the Far East.

Record arrivals expected this year - official

St Julian's, 16/04/08 - It's official. This should be another record-breaking year for the tourism industry.

Speaking at the Tourism Students Association's annual conference this morning, parliamentary secretary for tourism Mario de Marco said 2008 is expected to break last year's arrivals record of 1,243,512.

 "We're facing a year of increased accessibility", explained de Marco. Two low cost carriers started operations to the islands earlier this month - Easyjet and Vueling - and two more are due to introduce frequencies by summer (Norwegian Shuttle and Volare). British Airways also started operating from the UK using its own equipment.

However, cautions de Marco, Malta "cannot afford to lose its reputation as a good service centre".

Airline fuel surcharges inconsistencies exposed

Mosta, 16/04/08 - A survey of airline fuel surcharges between Australia and the UK has unveiled significant inconsistencies, AviationRecord.com reports.

The disparity between the world's major airlines is so great that Australian flyers have been warned by the country's largest travel agency, Flight Centre, to ensure they take the surcharges into account before deciding which airline to use.

A schedule of 13 airlines flying the long-haul route between Sydney and London shows passengers can pay anything between zero and A$802.40 in surcharges - on top of the quoted fares.

The charges quoted by Flight Centre today for a Sydney-London-Sydney return flight are:
Emirates: nil
Korean: A$240.00
Virgin Atlantic: A$269.60
Cathay: A$291.20
Etihad: A$318.00
Singapore Airlines: A$372.40
United A$373.00
Thai: A$405.40
Qantas, British Airways, Air New Zealand: A$424.00
Malaysian: A$519.40
Japan Airlines A$802.40

Flight Centre managing director Graham Turner said airlines' varying application of fuel surcharges and other instances of component pricing in the travel industry had made comparisons difficult.

"In the current climate, it is not unusual to see an airfare advertised excluding taxes, particularly on some overseas websites”, he said.

Flight Centre has called on airlines to eliminate fuel surcharges and to return to the traditional system of incorporating fuel and all other operating costs into ticket prices.

"Emirates has adopted this policy and has benefited hugely from increased business, but others have continued to treat fuel as somehow separate to the cost of the airfare," said Turner.

"Fuel, like maintenance, taxes and labour costs, is obviously an integral component of air travel expense, so it is difficult to see why it should be treated as a separate surcharge".

European airlines association holds conference at the Westin

St Julian's, 16/04/08 - Delegates at the European Regions Airline Association's sixth Regional Airline Conference, held at the Westin Dragonara Resort on 9 and 10 April, agreed that genuine problems will face the European regional aviation industry in the year ahead but also agreed that with hard work and cooperation real progress can be made.

The two-day conference addressed many of the issues, whether strategic, commercial or regulatory, currently affecting intra-European aviation.

The meeting began with ERA president Antonis Simigdalas calling for a 'just culture' with regard to the criminalisation of aviation accidents, after which Air Malta chief executive officer Joe Cappello welcomed delegates to the island.

The first full session of the meeting then alerted delegates to the many exceptional opportunities that still remain for European carriers in terms of route network development. Areas including the Middle East, the Balkan states and the CIS countries were all placed under the microscope.

In the second session, the environmental matters so fundamental to modern aviation were addressed. The financial influence of environmentalism led naturally to a discussion of how confident European aviation can be in the economic future of the industry.

The second day of the event began by studying several major problems facing the industry, problems which might worsen if not addressed in a practical manner. Airport congestion must be eased, de/anti-icing methods and fluids must be as safe as possible and ground accidents must be minimised.

In the final session technology proved to be a focus, whether being used to simplify passenger flow or to meet regulatory requirements for passenger data. Delegates also heard a detailed analysis of what differences really exist, in financial and service terms, between low-fare carriers and regional airlines.

Overall, the 2008 ERA Regional Airline Conference attracted almost 200 delegates, proving yet again to be one of the year's most important gatherings of senior decision-makers and strategists in intra-European air transport.

Outbound travel up 30% in two months

Valletta, 16/04/08 - In February 17,042 residents left the islands, an increase of 31.3 per cent over the same month of 2007, the National Statistics Office reports.

In the first two months of the year, meanwhile, 35,441 Malta residents left the islands - an increase of 29.6 points over the first two months of last year.

The majority of departures, 86.6 per cent, travelled to European Union destinations, with the United Kingdom and Italy being the top two destinations.

Air Malta offers 35,000 seats at slashed prices to celebrate anniversary

Luqa, 15/04/08 - Air Malta is offering 35,000 one-way seats from €67 including taxes and charges. This is part of the anniversary celebrations that the airline will be embarking on to commemorate its 35 years of service.

The seats offer are valid for travel from Malta to: Amsterdam, Athens, Berlin, Birmingham, Brussels, Budapest, Catania, Düsseldorf, Frankfurt, Glasgow, Hamburg, Istanbul, London Heathrow, Gatwick and Stansted, Leipzig, Manchester, Milan, Munich, Paris, Reggio Calabria, Rome, Sofia, Tunis, Vienna and Zurich.

This offer is valid for travel between 6 November and 31 March 2009, (excluding the period from 17 December to 8 January 2009). Reservations and ticketing have to be made by 28 May. And "certain conditions and travel restrictions may apply".

Departure tax revision delayed

Brussels, 11/04/08 - The revision of the controversial departure tax, which was supposed to have been carried out by the end of March, has been delayed, writes Ivan Camilleri in today's edition of The Times (of Malta).

In its electoral manifesto leading up to last month's general elections, the Nationalist Party pledged to remove the tax altogether.

The European Commission and Malta had agreed that the departure tax of €23.29 was to be adjusted during the first few months of 2008, but the move has now been delayed due to the elections and dissolution of parliament.

Commission sources yesterday expressed regret that the tax has not yet been changed, writes Camilleri.

Last December, following talks between the government and the European Commission, it was decided that Brussels would temporarily suspend its decision to refer the issue to the European Court of Justice in order to give the Maltese authorities time to adjust the tax and bring it in line with EU law.

"Following discussions between the Commission and Maltese authorities, including a written commitment that Malta will be revising this tax regime, the EU executive decided to halt its legal process to give the Maltese authorities some time.

"The deadline given by Malta was the end of March. However, we have now been informed that Malta needs some more time".

The government is claiming that the delay was caused by the general elections held a month ago and the fact that parliament has still not reconvened.

"It is true that we had told the Commission that by the end of March we will be in a position to send them the new legislation. However, because of the elections and since parliament is not constituted we are not in a position to pass new laws at the moment", a government spokesman told Camilleri.

Asked when the law is expected to be changed, the spokesman said the intention is that this will be one of the first items to be discussed by the new parliament, meeting on 10 May.

"We are not in any way retracting our promise to revise this tax. This was also promised in the Nationalist Party's electoral programme. Our commitment is there and we will deliver at the earliest possible time", the spokesman insisted.

The Commission deems the airport tax discriminatory as it is only levied on passengers beginning an international journey from Malta. This, therefore, puts an unfair burden on residents of Malta and makes it more difficult for them to receive and provide services in other member states.

EC buys second US school in San Diego

St Julian's 08/04/08 - Maltese-owned EC has just bought a language school in San Diego, California. Its second in the United States and seventh internationally.

The San Diego school - the International Center for American English has been rebranded as EC San Diego - joins the EC portfolio of English language centres in London, Cambridge and Brighton in the UK, Cape Town, Boston and the first and largest flagship school in Malta.

The 20-classroom San Diego school, which cost millions according to managing director Andrew Mangion, was bought on 31 March and will be upgraded "before moving into high gear for summer".

Michelle Falzon has been appointed general manager of the school, which caters mostly for an affluent adult market, principally European.

"EC", Mangion adds, "has ambitious plans for further expansion in the United States", and is looking at having between five and seven schools there by 2010.

The current weakness of the dollar plus the recent announcement of the double taxation agreement with the US, make that country an exciting prospect for investments, Mangion explains.

SMS Travel publish dedicated cruise brochure

St Julian's, 08/04/08 - SMS Travel has published a brochure featuring all cruises available this summer. Apart from the dedicated Costa Concordia and Norwegian Cruise Line published earlier this year, SMS Travel has produced a new brochure which includes voyages aboard Royal Caribbean ships and Celebrity Cruises.

The cruise itineraries offered include the Canary islands, the Arctic Circle and North Cape, the eastern United States and Canada, Barcelona and western Europe, Venice and the Greek islands, the US's West Coast and the Mexican Riviera, the British isles and the fjords, the eastern Mediterranean and Orlando and the western Caribbean.

Featured cruises sail three times a month, starting on 29 April until 30 August.

All packages include flights, transfers, accommodation (if applicable), the cruise itself and a 'tour manager'.

Air Malta launches summer flyaway programme

Luqa, 07/04/08 - There was a time when Air Malta held a press conference to announce just about everything it did. Nowadays, a press release suffices. And so it was with the launch of the flag carrier's summer Flyaway Tours brochure.

This summer's programme features resorts that range from budget class in Catania and Taormina to luxury standards on the Greek islands, Cyprus, Tunisia, Italy and Palermo. City breaks feature with packages ranging from two nights in two star properties to five star accommodation.

The Flyaway Tours brochure is "aimed at the independent and individual traveller" says Air Malta; excursions are also available in almost every destination as are airport transfers.

Cruises are also heavily featured in this season's edition. One can opt for either a river cruise from Croisi or an upscale Royal Caribbean voyage in the eastern Mediterranean.

This edition of the Flyaway Tours brochure has a special offers section with a wide choice of destinations including Vienna, Prague, London, Paris, Marseille, Lyon, Berlin, Düsseldorf, Frankfurt, Hamburg, Leipzig, Athens, Budapest, Reggio Calabria, Bologna, Milan, Palermo and Istanbul with prices starting from under €200 for three nights in Budapest inclusive of return air fare, accommodation and taxes. Availability for the special offers is limited and offers close by the end of April. Also, all travel must be completed before 6 July.

MTA launches ad campaign in Spanish cities

Valletta, 07/04/08 - The introduction of new airline routes has opened doors for travel to Malta. Spain has recently been the focus of an advertising campaign by the Malta Tourism Authority to promote the islands in three cities - Barcelona, Madrid and Valencia - served by Clickair, Vueling and Ryanair respectively.

In Barcelona a billboard measuring 23 metres by 13 metres has been unfurled on the Gran Via 320, one of the city's main thoroughfares. This highly visible billboard covering 299 square metres is illuminated at night and will be on display until the end of April. Another 190 posters in Barcelona's subway and 40 on the back of buses will also be promoting Malta.

In Madrid, meantime, 220 posters will be advertising Malta in the capital's subway for two weeks, whilst in Valencia Malta will be advertised on trams for two months.

An internet campaign on major travel portals in Spain is also underway to capitalise on the poster campaign.

Malta to be 'unveiled' at Beijing show

Mosta, 07/04/08 - "The Mediterranean's best kept secret" will be revealed at the upcoming China Outbound Travel and Tourism Market (COTTM), being held in Beijing later this month.

San Gwann's Alpine Sterling Conference and Incentives and Dream Holidays International of Naxxar have joined Air Malta, the two Radisson SAS properties in Malta along with the InterContinental Malta, the Grand Hotel Excelsior and The Palace to participate at COTTM.

The show will be held from 14 to 16 April at the China World Trade Centre. This is the first time local companies are participating at the show, yet "the interest shown about Malta is phenomenal", says Alpine Sterling's Warren Zahra. "I've already received dozens of emails from Chinese companies wanting to meet us during the show; the business potential is huge", he adds.

China and India are regarded as the two biggest growth markets for consumer goods and international travel.

Vueling and Clickair in merger talks

Mosta, 03/04/08 - On the day low cost Spanish carrier Vueling introduced scheduled services to Malta from Madrid - 1 April - it also issued a statement saying it would examine a merger plan with Clickair, "together with the structure of any potential combined operation, the relative values of both companies and a corporate governance scheme".

The merger, says Vueling, would be on equal terms and any resulting airline would be based in Barcelona. A decision is expected in a matter of weeks.

A merged Vueling-Clickair would operate 47 aircraft and carry about 10.7mn passengers a year.

Clickair, another Spanish-owned low cost carrier, began regular flights from Barcelona to Malta last June.

Both airlines are listed on the Madrid stock exchange. The major shareholder of Vueling is Inversiones Hemisferio with some 26 per cent of the stock. Twenty per cent of Clickair is owned by Iberia.

At the end of February, meanwhile, Vueling announced that its revenues for 2007 rose by 54.3 per cent to €362.7mn after passenger numbers jumped 77.2 points to 6.22mn, the Travel and Hospitality Industry Digest reports.

However, at €37.65, its average fare was 20 per cent lower than in 2006, as a result of strong competitive pressure from "traditional and low-cost carriers alike". The fall in fares had a negative impact of €60mn last year.

Vueling posted a 2007 loss in earnings before interest, tax, depreciation and aircraft rentals of €5.1mn, versus a profit of €28mn in 2006. This was better than the €10mn it outlined in a profit warning last October.

KM starts operating to Schengen terminals

Luqa, 03/04/08 - Following Malta's entry into the Schengen area, air passengers travelling from the islands to other Schengen airports may now do so without having to go through the customary passport control.

However, passengers must still carry passports or ID cards when travelling. These documents must be presented at check-in for proof of identity and may also be requested for security reasons.

Separate halls for arrivals from Schengen and non-Schengen countries at Malta International Airport have been introduced, and separate boarding gates have been allocated to flights outside of the zone.

As a result of Malta's entry into the Schengen area, Air Malta has changed the terminals or halls it serviced and is now operating from the following: Amsterdam - from Terminal 3 to Terminals 1 and 2;
Berlin - from Terminal B to Terminal C;
Budapest - from Terminal 2B to Terminal 2A;
Düsseldorf - from Hall C to Hall B;
Prague - from Terminal 1 to Terminal 2;
Rome - from Terminal C to Terminal B.

Operations to other EU airports remain unchanged.

Egypt Air subsidiary to operate to Malta

Mosta, 25/03/08 - Egypt Air Express is to start operating a scheduled frequency from Cairo to Malta this summer.

Services will be operated twice a week from 3 July using the 80 seat, Brazilian-built Embraer ERJ170 aircraft. Flights will leave Cairo on Thursdays and Sundays at 14:00, arriving at Malta International at 16:00. The return trip will leave 45 minutes later, at 16:45, for a scheduled ETA in Cairo at 20:45 - all times are local.

Egypt Air Express is a scheduled domestic and regional airline set up by flag carrier Egypt Air in June 2006; it started flying in 2007. The company's main base is Cairo International Airport with hubs in Alexandria and Sharm El-Shaikh.

Its fleet consists of six Embraer ERJ170s, but it has options for another six 170s or for the larger 114 seater ERJ190s, with deliveries starting early next year.

The Malta GSA of Egypt Air Express is Gzira-based Misr Company, a sister company of Planit Travel Services of Nazju Ellul Street. Misr can be contacted on 21341548.

Cruise traffic down in February

Valletta, 25/03/08 - In February cruise passenger traffic dropped by 576, a decrease of 18.9 per cent over the same month last year.

Last month a total of 2,464 cruise passengers visited Malta, according to the National Statistics Office. There were no embarkations or landings in Malta in February.

Meantime, total cruise passenger traffic for the year so far was 4,657, an increase of 4.9 per cent compared to the first two months of 2007, but still well down on the 11,439 recorded in January and February 2006.

Just one cruise liner called in February, bringing the total for the first two months of 2008 to two.

How free are we to travel?

London, 19/03/08 - As millions of people prepare to take a spring holiday break, there are mutterings in the background from governments wanting to raise taxes, environmental groups decrying excessive leisure travel and destinations fearing for the survival of local culture.

The freedom to travel can be viewed as a major political freedom, comparable to the right of freedom of expression. It is essential to human contact for business or leisure, and it widens the horizons of individuals both literally and figuratively.

But how free is it? Over and above the financial cost to the individual traveller, there are clearly other factors to take into account.

The environmental and cultural impact of increased numbers of travellers can be either positive or negative, depending on how the flows are managed. Travel and tourism can sustain, support and nurture the environments and cultures it touches - but without the right strategies it can also do harm.

The fact that many people in the world have neither the freedom nor the funds to travel is another obvious challenge. How far can travel and tourism play a role in the economic, social and even political developments that can widen access to its benefits?

Pricing carbon into products and services may offer some scope for solutions - but if conducted as a policy in isolation it risks increasingly restricting travel and tourism to an elite few rather than widening access.

Leading businessmen and politicians from around the world will discuss these issues at the Global Travel and Tourism Summit of the World Travel and Tourism Council in Dubai from 20 to 22 April. They aim is to explore the approaches that can balance the prizes of freedom and opportunity to travel with sustainability in a changing world.

Bringing public and private sector leaders together should throw new light on their respective roles in this issue - and, indeed, on the role of the individual - in achieving the hallowed balance. The summit itself is the consequence of a major public/private partnership comprising the Dubai Department of Tourism and Commerce Marketing, the Emirates Group, Jumeirah Group and Nakheel.

For a full list of speakers and the programme, visit www.globaltraveltourism.com/programme

Malta wows the trade at ITB

Valletta, 18/03/08 - Other things did happen during the first week of March, and not just general elections in Malta. ITB, the annual mega travel fair, was held in Berlin, for example, and the Malta Tourism Authority (MTA), together with representatives from the local trade where there. And all agreed that's this year's participation "was done with flair and style".

The MTA sported a newly designed stand at ITB that  "was very well received by the steady flow of interested customers who stopped to learn more about Malta. The attraction was not just the eye-catching stand but also the VIP visitors who stopped by.

German TV host and singer Barbara Schöneberger paid the Malta stand a 'state visit' in her role as president of Opodia - she is the marketing testimonial of internet travel portal Opodo.

During a culinary media and trade reception held at the stand, MTA chairman Sam Mifsud appointed German TV chef Rainer Mitze as Malta's culinary ambassador for 2008. As a token Mitze received the gift of a silver ladle with a Maltese cross.

The MTA's office in Germany has been co-operating with Mitze for some time "as he has a big passion for the Maltese islands and the uniqueness of Maltese cuisine". In 2004, Mitze opened a branch of his popular cooking colleges in Malta at Razzett l-Antik in Qormi where holidaymakers and incentive groups could learn how to cook Maltese cuisine. Moreover, Mitze has published a book on Maltese cuisine and is currently working on new books about Maltese olive oil and sweets. The MTA has planned some culinary projects with Mitze, among these are a film shoot with Deutsche Welle TV.

During the show, meantime, the MTA was presented with a special award by leading online booking portal Expedia in recognition of Malta being an e-pioneer in the Mediterranean. Thaddeus Hanscom, European director of Expedia, presented the award Mifsud during a ceremony at ITB.

"Malta is attracting travellers throughout the world by leveraging the world's leading online travel network - Expedia," said Hanscom,

"MTA's strategic approach demonstrates its leadership among tourism boards who want to raise awareness of their destination and make a significant impact on inbound tourism. Malta is leading the way online and taking away travellers from competing destinations".

Premier appoints de Marco to oversee tourism industry

Valletta, 17/03/08 - The Ministry for Tourism and Culture is no more. Culture has been hived off to the Education Ministry and Tourism is now an appendage of the Office of the Prime Minister.

Following the Nationalist Party's slim electoral win earlier this month, premier Lawrence Gonzi promised a smaller cabinet and a reduction in ministerial portfolios. And he kept his word, there are now just nine ministries.

Although the buck will stop with Gonzi, he has appointed lawyer Mario de Marco (43) as parliamentary secretary for tourism.

De Marco, son of former president of Malta Guido de Marco, will run "the show" on a day-to-day basis and ensure that policies are implemented.

His first address to the industry was an impromptu one, made at the MHRA quarterly survey results presentation last Friday at the Grand Hotel Excelsior (see following story). Although he is new to the role, de Marco says he hopes it will be a quick learning curve and "will be drawing inspiration from predecessors in the role, including Karmenu Vella and Francis Zammit Dimech.

"Product Malta is vital", he said and added: "I do believe we need more repeat visitors and that we should be more innovative in what we offer tourists and what we show them of Malta".

Ryanair helps hotels enjoy record year

Floriana, 17/03/08 - If there is one segment of the tourism industry that cannot complain about performance in 2007, it has to be the accommodation sector. Occupancy was up and revenue increased.

The record results in tourism arrivals in 2007 "were a deserved reward for all those in the industry who gave their total commitment to reversing the negative trends registered up to late 2006", Malta Hotels and Restaurants Association (MHRA) president Josef Formosa Gauci told members on Friday at the Grand Hotel Excelsior.

Formosa Gauci was speaking at the Bank of Valletta sponsored, MHRA hotel survey carried out and presented by Deloitte every three months.

The results for the last quarter of 2007 remained upbeat and continued to build on the gains made in the first nine months of the year and to consolidate the overall year-to-date performance.

Malta's key markets showed increases in arrivals for Q4 and on a year-to-date basis. The growth from the United Kingdom remained strong and accounted for 43 per cent of the growth on a year-to-date basis and 38 per cent of the increased arrivals in Q4

Arrivals from Ireland and the Nordic countries also registered impressive growth, and between them accounted for 23 per cent of the growth in Q4 and on a year-to-date basis.

Arrivals from other non-core markets were also very strong and accounted for 26 per cent of the growth for the year and 13 per cent for Q4.

Formosa Gauci said the increase in arrivals had an automatic and immediate impact on the hotel industry and contributed to impressive improvements in all key indicators in all hotel categories.

Occupancy, for instance, in five star properties rose to 67.5 per cent compared to 63.2 points in 2006. Four star occupancy escalated to 75.5 per cent compared to 70.2 per cent the previous year, while the three star sector registered 70.1 per cent occupancy rate as opposed to 62.9 per cent a year before.

Last year the average achieved room rates (AARR) for five star hotels rose to Lm40.92 from Lm38.29 in 2006. Four star properties managed Lm17.28 compared to Lm15.98 and three star accommodation Lm12.58 compared to Lm10.43 in 2006.

The gross operating profit per available room (GOPAR) for five star hotels shot up to Lm4,312 compared to Lm3,269 in 2006. Four star registered Lm2,265 GOPAR in 2007 compared to Lm1,587 the previous year while three star accommodation managed Lm1,106 compared to Lm514 in 2006.

What did go down in 2007 was the average length of stay. In Q4 guest nights were 11.7 per cent higher than in the comparable quarter of 2006. This increase pushed total guest night generation to 3.3 points above 2006 on a cumulative basis. However, the average length for the quarter was 0.38 nights less than in Q4 of 2006. On a year-to-year basis, the average length of stay was 8.86 nights, down from 9.48 in 2006.

"The record results registered in 2007 are a feather in our cap", says MHRA president Formosa Gauci, "and are living proof of what can be achieved through effective coordination and collaboration of all stake holders".

What Formosa Gauci failed to mention was that 2007's positive results are essentially the work of one company - Ryanair.

In 2006 the Irish low cost carrier flew 22,305 passengers to Malta, or just 0.8 per cent of air arrivals. Last year it carried 222,825 passengers representing 7.5 per cent of arrivals.

Had Ryanair not operated to the islands, the net result in arrivals would have probably been less than in 2006. Within a year, it has become the leading foreign registered carrier of tourists to the islands.

January outbound travel up 28 per cent

Valletta, 17/03/08 - In January an estimated 18,398 residents left the islands by and air sea, according to National Office of Statistics data. This was an increase of 28 per cent compared to the January 2007 figure of 14,372.

The majority - 15,720 - travelled to European Union destinations, with the most popular being the UK and Italy.

Males exceeded female travellers, with the former accounting for 58.5 per cent of the total. The largest proportion of travellers - 50.9 per cent - were aged between 25 and 44, followed by those in the 45 to 64 age bracket who accounted for 38.3 per cent of the total.

Malta recognised as most improved destination

Miami, 16/03/08 - A Maltese delegation was in Miami earlier this week to attend the Seatrade Cruise Shipping Convention, during which MTA chairman Sam Mifsud was presented with a commemorative silver plate to mark the authority's support and sponsorship of the Seatrade Winter Cruising Shipping Forum held in Malta in January.

The presentation was held at the Malta Tourism Authority's stand at the Miami Convention Centre. Official representatives at the stand were Mifsud, Francesca Vincenti, MTA cruise and leisure executive and Chris Paris, general manager of VISET, operators of Valletta's cruise terminal.

Dream Publications, meanwhile, recognised Malta for its achievements as a cruise destination. Dream World Cruise Destinations magazine presented Paris with a commemorative certificate as part of the 2007 awards for most improved destination. This award acknowledges the improvement seen in the tourism product including the infrastructure, such as city and town centre landscaping, traffic flow, provision of transport, access to tourism information, new attractions and experiences. Malta also won the award for most improved port facilities, as regards to berthing facilities, parking spaces and other related amenities.

Hotel changes its name again

Floriana, 04/03/08 - The five star property overlooking Marsamxett Harbour has reverted to its original name. The Excelsior Grand Hotel is now the Grand Hotel Excelsior once again.

Last year, just before it opened, the Grand Hotel Excelsior became the Excelsior Grand Hotel, because its priority was to excel. However, because everyone knows it by its original name "why fight it?".

Oops!

Mosta, 04/03/08 - In the item titled First property awarded a red Q we wrote that "the reason Quality Service Certification has been a failure is that the companies endorsed by the MTA to carry out audits are all owned by hoteliers and competitors".

This is in incorrect in the case of Mejoris Hospitality Consultancy Services, the company that carried out the audit of the Pergola Club Hotel and Spa. The company is not owned by a hotel and is not "in competition to any property".

Meantime, as second hotel is being audited for Quality Service Certification, a scheme introduced by the Malta Tourism Authority in July 2006.

British Airways to introduce red-eye to Gatwick

Valletta, 28/02/08 - British Airways will take over the Malta-London Gatwick route currently operated by its franchisee partner GB Airways - which was bought by Easyjet - from 30 March.

BA will operate this route with a B-737 offering a two-cabin service, Club Europe (business class) and Euro traveller (economy). Flights will leave Gatwick at 21:55 and land in Malta at 02:10. The northbound sector, on the other hand, will leave Malta at 05:25 and arrives at London Gatwick at 07:30.

"This new schedule allows for a full day of work or leisure in London..." and sells from €90 for a one-way, all-inclusive ticket.

Easyjet to operate from Manchester and Gatwick

Mosta, 25/02/08 - Low-cost carrier Easyjet has committed itself to operate to the islands from the United Kingdom for the next five years, starting on 30 March.

Easyjet will be operating daily from Manchester throughout summer and four times a week in the shoulder season. Manchester services start on 31 March.

The day before, 30 March, will see the start of London Gatwick services to Malta. Ten frequencies a week are scheduled from Gatwick.

Although Easyjet is a LCC, the Maltese government will pay no subsidies to it since it has taken over the slots previously operated by GB Airways.

One liner breaks January 2007 record

Valletta, 25/02/08 - There may have only been one cruise liner call in January, but it did have 2,193 passengers aboard, an increase of 795 over the same month in 2007.

However, this was still down on the 5,551 passengers that visited the island in January 2006, according to National Statistics Office data.

Air Malta to bill government for 'voting tickets'

Luqa, 13/02/08 - Maltese nationals eligible to vote at the next general elections and who live abroad may travel to the island on Air Malta, at the reduced price of €35 and cast their vote on 8 March. After the elections, Air Malta plans to invoice the government for the balance of each 'voting ticket' sold. The carrier expects to fly nearly 1,000 voters to the polling booths.

The scheme applies to those whose names appear on the electoral register, including those married to foreigners, studying, working or undergoing medical treatment abroad and also to their dependents.

This offer is available only for travel between 29 February and 16 March. Eligible voters may only travel to Malta between 29 February and 8 March and return between 8 and 16 March.

Reservations may not be changed and tickets are non-refundable. Personal details including names and surnames, addresses in Malta, ID card numbers, email addresses, credit cards details and contact phone numbers are required by the carrier at the time of booking and before tickets are issued.

Flight reservations should be made through Air Malta's call centre on number (00356) 23645350 between 08:00 and 21:00, Monday to Saturday and from 08:00 to 17:00 on Sundays. Alternatively one can call KM's outstations.

Air Malta appoints Italian handlers at Heathrow

London, 27/01/08 - Alitalia Servizi has taken over the handling of Air Malta flights at London's Heathrow Airport. The contract is "expected to yield visible benefits and a better quality product to Air Malta's customers in terms of ground services for the airline's flights at the airport".

KM operates two flights daily to London's premier airport of Heathrow. And continues to use Terminal 4, but check-in desks have been moved to counters 7, 8 and 9 in Zone A. The ticket sales, meanwhile, desk will still operate from Zone D.

First property awarded a red Q

Mellieha, 26/01/08 - Well over a year after the Malta Tourism Authority launched its Quality Service Certification scheme, a hotel has finally had itself audited.

The four-star Pergola Club Hotel and Spa is the first property to be entitled to display the red Q, denoting it provides a quality service. Certification was awarded following an audit carried out by Mejoris Hospitality Consultancy Services.

The mystery guest audit covers all aspects of hotel services as provided to the customer, including reservations, welcome, reception, public areas, bedroom, food and beverage and miscellaneous services. The MTA has produced an extensive checklist that covers both the physical aspects and the service element of the operation. Certification, which is voluntary, is aimed at hotels to improve their services and as a marketing tool.

The reason Quality Service Certification has been a failure is that the companies endorsed by the MTA to carry out audits are all owned by hoteliers and competitors.

Neckermann Austria launch summer brochure in Malta

Valletta, 25/01/08 - Neckermann Austria launched their summer 2008 brochure in Malta during week-long activities recently. The launch consisted of an educational visit by more than 300 Austrian travel agents and journalists, who flew to the islands on Air Malta services from Vienna.

During a press conference the CEO of Neckermann Austria, Reinhard Kotzaurek said: "Malta is becoming more and more important for Neckermann. We believe that the Maltese islands, at the heart of the Mediterranean, have an excellent product to offer to our customers. Our decision to host this event in Malta is a confirmation of the increased importance we are giving to the islands. In 2008 Neckermann, the Malta Tourism Authority and Air Malta will continue working closer together, developing different niches and growth areas that Malta's diversity offers".

Neckermann is the main brand of the Thomas Cook group and is the second largest travel group in Europe. Apart from Austria, the operator also sells holidays to Malta from a number of other European markets.

Air Malta and the Malta Tourism Authority in collaboration with SMS Travel and Tourism – the operator’s local agent - supported the activities.

No fuel charges for NCL passengers

Valletta, 04/01/08 - Cruises International, local agents for Norwegian Cruise Line (NCL), is absorbing fuel supplements charged by "most cruise lines and airlines around the world".

The company has decided to absorb this extra expense "to keep prices as low and as attractive as possible". The decision, says Cruises International, affects people that have already booked as well as new bookings.

According to Cruises International's chief operations officer, Michael Abele, the decision not to levy these supplements will cost Cruises International "tens of thousands of euros". However, Abele is convinced that such a move will be "appreciated by customers who are being rewarded for booking with NCL even before commencing their holiday".

As from May, NCL's newest ship, the 93,000-ton Norwegian Gem will be operating cruises starting in Valletta until early November.