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News archive 2005 - MayJune • July • AugustSeptemberOctoberNovemberDecember
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July 2005
Alpine Holdings buys Sterling TravelLas Vegas company to sell Eden Leisure timeshareHotel occupancy down in AprilChirac urges air tax to fund Africa aidCruise passengers up 31% in JuneRenovated Capua Palace offers upscale meeting and accommodationGolden Tulip Vivaldi to increase room numberAir Malta slashes UK faresInternational tourism receipts set new record in 2004Travel industry unites against proposed aviation taxCorinthia allies itself with US investors groupMaltese travel up two per cent in '05Better air traffic control would save fuel - IATATravel costs to increase by Lm26 in the next 15 daysMalta faces legal action on air rulesCorinthia Hotels launched in the USFTI gives MTA airline seatsAir Malta reorganises its overseas officesRadisson introduce defibrillators in its Malta hotelsNew salon at Marina HotelIncrease in private-public partnerships boosts WTO affiliate membershipICAO standard for machine-readable passports made mandatoryEmirates to fly DXB-MLA via Larnaca, Air Malta to code share
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Alpine Holdings buys Sterling Travel

Mosta, 28/07/05 - Alpine Holdings, operators of Alpine Travel, bought Sterling Travel and Tourism from Air Malta this morning, Alpine's chief executive Tony Zahra told Island Travel Trader Online. But he would not say for how much.

Air Malta put Sterling on the market in March and, to sweeten the deal, guaranteed the buyer a five year destination management contract for its tour operating arm - Holiday Malta Company.

Sterling's business is principally that of local handling agent for Holiday Malta. The latter sells inclusive holidays and flight seats to the islands and to Sicily in the UK, Ireland, Sweden, the Czech Republic, Germany, Russia, Italy and Greece. Holiday Malta sells some 85,000 holidays a year.

"Sterling is a substantial DMC in its own right", says Zahra, "and it will continue to operate as a separate entity". Needless to add that Zahra wants his new business interest to expand further.

One of the conditions of purchase was the absorption of Sterling's staff; apparently all but six - including former managing director Vanni Corrieri - chose to work for the new owner.

Until this morning's announcement, the rumour mill had been working overtime as to who would buy Pembroke-based Sterling. Names that were bandied around included industry heavy weights Robert Arrigo and Sons, SMS Travel and Tourism, the Alliance Group and, of course, Alpine Holdings. Corrieri was also known to have shown an interest in buying the company.

Las Vegas company to sell Eden Leisure timeshare

St George's Bay, 28/07/05 - The Eden Leisure Group has signed a deal with the Las Vegas-based Sunterra Corporation for the sale of its timeshare units.

Situated within the InterContinental Malta, the Eden Bay Resort was built in 2003 and consists of 46 one and two bedroom apartments. The resort will start accepting Club Sunterra members from Saturday, 30 July.

Eden Leisure Group managing director Ian De Cesare, says, "the timeshare industry is a peculiar business. Although we have been in the hotel business since 1967, we are not timeshare operators. Unlike us, Sunterra is a large holiday ownership company which brings significant know how and expertise to the island, not to mention the possibility of attracting significant tourism to the island.

"Due to its size Sunterra does not use traditional marketing techniques such as OPCs, which have been the source of much debate in recent weeks. We are looking forward to a long and prosperous partnership".

Meanwhile, Nick Benson, Sunterra's president and CEO, is "convinced that our members will quickly embrace the experience and enjoy the rich history, culinary delights and culture as well as the oceanfront of the area".

Sunterra is one of the world's largest holiday ownership companies, growing from nine resorts and 25,000 owner families in 1996 (when the company was known as Signature Resorts) to nearly 100 resorts in 13 countries and more than 300,000 owner families today.

Hotel occupancy down in April

Valletta, 27/07/05 - Occupancy statistics for April show a decrease compared to same month in 2004, according to an ambiguous press release issued by the National Statistic Office today.

Although there were 7.3 per cent fewer beds available this year, down to 37,692 from 40,669 in April 2004, the occupancy rate shrunk by 1.7 per cent to 50.3 per cent.

The highest occupancy in April was recorded in the four star hotel category at 61.6 per cent. This was followed by five star hotels with 52.1 per cent.

The total number of nights spent in Malta and Gozo in April decreased by 9.7 per cent when compared to the same month in 2004. This was partly due to a drop in the average nights spent, from 6.5 in April last year to 6.0 nights in April 2005 says the NSO.

On an island-by-island level, there was a drop of 16.2 per cent in nights spent by tourists in Malta. Compared to April 2004, the average length of stay of tourists dropped from 6.9 to 6.5 nights. On the other hand, the average length of stay of residents doubled from 2.1 to 4.2 nights - presumably Gozitan residents who travelled to Malta.

In Gozo, the average length of stay stood at 3.6 nights, while the total nights spent decreased by 1.1 per cent.

Four star hotels recorded the highest occupancy levels in Malta. The three star hotel category decreased from 49.1 per cent in April 2004 to 46.6 per cent in April 2005, while occupancy in five star properties decreased from 58.2 per cent to 53.1 per cent.

Improvements in occupancy levels were registered in aparthotels, guest houses, and two star hotels, the NSO reports.

Meantime, for those who are conversant with NSOspeak reproduced - unedited - is the original press release:

"Occupancy trends during April 2005 reveal an overall decrease in the gross/net use of bed-places by type of accommodation when compared to the parallel month in 2004.

Although the month under review, registered a drop of 7.3 per cent in the supply of bed places, down to 37,692 from 40,669 in April 2004, the overall occupancy rate (net use) diminished by 1.7 percentage points to 50.3 per cent. The highest occupancy rate was recorded in the four star hotel accommodation category at 61.6 per cent. This was followed by the five star hotel category at 52.1 per cent. Total nights spent in Malta and Gozo decreased by 9.7 per cent when compared to the same month in 2004. This was partly attributable to a drop in the average nights spent, from 6.5 in April last year to 6.0 nights in April 2005.

On a regional level, a drop of 16.2 per cent in the share of nights spent by non-residents was recorded in Malta. Compared to April 2004, the average length of stay of non-residents declined from 6.9 to 6.5 nights. On the other hand, the average length of stay of residents doubled from 2.1 to 4.2 nights. Compared to April last year, in Gozo, the average length of stay stood at 3.6 nights, while the total nights spent decreased by 1.1 per cent.

The highest occupancy levels for accommodation establishments in Malta were recorded in the four star hotel accommodation. The three star hotel category decreased from 49.1 per cent in April 2004 to 46.6 per cent in April 2005, while occupancy for the five star hotel category decreased from 58.2 per cent to 53.1 per cent. Improvements in occupancy levels were registered in the aparthotel, guest houses, and two star hotel accommodation categories.

Chirac urges air tax to fund Africa aid

Paris, 27/07/05 - French president Jacques Chirac has again urged world leaders to impose a levy on airline tickets to finance extra aid for Africa, his office said yesterday, Reuters reports.

Chirac, who told the World Economic Forum in January that a tax of $1 (Lm0.36) per airline ticket could raise $10 billion (Lm3.58bn) a year to fund campaigns against diseases in Africa, pressed his case in a letter he wrote to more than 140 world leaders.

"I offer you to associate yourselves with the establishment of an international solidarity contribution on plane tickets, aimed, particularly, at financing the fight against AIDS, tuberculosis and malaria," he said in a letter dated Monday.

In the letter addressed to state leaders such as Russian president Vladimir Putin and British prime minister Tony Blair, Chirac said the tax would be imposed on tickets of aircraft leaving from airports in participating countries.

Chirac urged world leaders to work on the proposal ahead of the United Nations' summit in September.

"If the September summit allowed to launch this project, it would constitute a historic moment of hope, of mobilisation and action, and I would be happy if your country could participate in this," Chirac wrote.

The Group of Eight industrialised nations have decided to consider imposing a levy on airline tickets to finance extra aid for Africa, a proposal which has run into opposition in Europe and the United States.

Chirac's idea has received support from Germany, but even though talks so far have centred on a voluntary tax, some other European governments, including tourist destinations Greece and Italy, have given the idea an icy reception.

Cruise passengers up 31% in June

Valletta, 25/07/05 - In June the number of cruise passengers arriving in Malta rose by 31.3per cent, an increase of 7,614 over the same month a year ago, reaching a total of 31,956, the National Statistic Office reports.

Compared to June 2004, the major source of increase was the Italian market, with the number of cruise passengers increasing by 7,610, reaching a total of 10,457. In June this year Italians accounted for 32.7 per cent of the overall number of passengers who visited Malta on cruise ships. Other major improvements were registered from the German (+3,123), the Spanish (+2,843) and the US (+523) markets.

On the other hand, the number of cruise passengers from the UK declined by 5,522 to 2,360 from 7,882 in the same month last year. Other drops were recorded from the Austrian (-891), Swiss (-460), French (-231), Norwegian (-214), Swedish (-175), Irish (-186) and Danish (-142) markets.

In the first six months the year, meanwhile, the number of cruise passengers that visited the islands went up by 38.2 per cent to 106,381, an increase of 29,428 over the same period last year. In the period under review, the major markets originated from Italy (27,057), Germany (21,013), Spain (13,508), and the US (10,965).

Renovated Capua Palace offers upscale meeting and accommodation

Sliema, 25/07/05 - The ground floor of Capua Palace, operated by the four star Victoria Hotel, has been fully restored and transformed into an upscale conference and reception hall.

The restoration of Capua Palace forms part of a larger project that will transform the palace into a unique venue, offering meeting and accommodation facilities under one roof.

The second phase of the project includes the refurbishment of the executive suites on the upper floor with soft furnishings. Another development at the palace is the installation of a fully equipped kitchen so that catering will be provided in-house.

Speaking about the refurbishment, general manager Claire Xuereb said that "with the refurbishment in place, Capua Palace is set to become an important extension of the hotel's facilities. Thanks to the rich architectural heritage and historical background, events at Capua Palace are set to become a unique experience. Furthermore, the integration of the palace with the hotel's facilities will also provide better and more sophisticated entertainment venues at the Victoria Hotel."

Capua Palace is an 18th Century palace and one of the few remaining historical sites in Sliema. The palace was originally the home of Prince Charles of Capua who - after eloping to Gretna Green with Penelope, an Irish heiress - was exiled from Naples by his brother King Ferdinand II of the Two Sicilies. The palace, said to have been built by a Russian and originally named Selma Hall, was to the home of the Prince and Princess of Capua for many years. In 1837 their first son, Francesco, was born here.

Golden Tulip Vivaldi to increase room number

St Julian's, 25/07/05 - Minister for Tourism and Culture Francis Zammit Dimech inaugurated the Rhapsody Café, a new outlet at the four star Golden Tulip Vivaldi Hotel, on Friday.

The Libyan Arab Maltese Holdings, owners of the Golden Tulip Vivaldi, are investing in improving standards and facilities at the property. Various projects are in the pipeline, including a health and leisure centre and increasing the number of guest rooms from its current 193.

Air Malta slashes UK fares

Luqa, 25/07/05 - Air Malta has launched a raft of new fares to its main UK destinations. Fare 4U London Stansted return fares start at Lm45 while return fares to London's Heathrow and Gatwick start at Lm52 and Manchester fares start at Lm62. All fares exclude taxes, charges and fuel surcharges.

Flyaway Tours, Air Malta's package holidays, are also offering a varied range of accommodation in London. Prices for five nights in a four star hotel start from Lm183 per person inclusive of airfare.

Air Malta launched these slashed prices last Friday, the day after the botched bombing attempt in London.

International tourism receipts set new record in 2004

Madrid, 25/07/05 - International tourism receipts in 2004 reached a new record value of $622 billion (Lm219bn) as expressed in absolute figures.

According to the latest edition of the WTO World Tourism Barometer, worldwide tourism earnings grew by an extraordinary 10.3 per cent, a rate practically equal to that of international tourist arrivals which increased last year by 10,7 per cent.

In US dollar terms the increase amounted to 97 billion (Lm34bn), however, this is flattered by the rather generalised depreciation of the US dollar in 2004, causing receipts earned in currencies such as the euro, the Canadian dollar, the Japanese yen or the Australian dollar exchange into larger amounts of US dollars. Expressed in euro, receipts increased by 36 billion (Lm15.45bn) to a total of €500 billion (Lm214.5bn). Growth expressed in local currencies at constant prices, thus neutralising the effect of exchange rate changes and inflation, reached 10.3 per cent.

Europe earned a bit over half of worldwide tourism receipts (52 per cent), the Americas 21 per cent, Asia and the Pacific 20 per cent and Africa and the Middle East three per cent each. All regions posted positive results in 2004, ranging from two per cent for Europe to 24 per cent for Asia and the Pacific. Both the Americas and Europe report positive results after three negative years. International tourism receipts grew by 11 per cent in the Americas due in particular to the recovery of North American destinations (+13 per cent). Results were positive in North America for the first time since 2001 as all destinations bounced from the setbacks of the previous years, in particular the US, the region's as well as the world's major tourism earner, where receipts grew by a remarkable 16 per cent to a total volume of $75 billion (Lm26.4bn) or 12 per cent of the world's tourism receipts.

Europe recorded a two per cent increase as all sub regions rebounded from 2003 negative results, although still comparatively feeble in the case of Western Europe (+1.2 per cent) and Southern and Mediterranean Europe (+2.2 per cent; values in local currencies at constant prices, in US dollars receipts increased much more as a result of the considerable appreciation of the euro).

International tourism receipts grew by an exceptional 24 per cent in Asia and the Pacific, following the nine per cent loss of the 2003 SARS year. The fastest growing sub region was North-East Asia (+30 per cent). Growth was also particular buoyant in the Middle East (+22 per cent). Africa posted a more modest growth (+6 per cent), constrained by the results of Sub-Saharan Africa (+4 per cent) after having been the star performer of the past three years.

Although demand recovered very well during 2004, receipts grew at a marginally slower pace than volume. In particular in Europe and in Asia and the Pacific receipts growth lagged somewhat behind the increase in arrivals.

This reflects the rather general trend towards a higher frequency of trips, but shorter stays. It is a long-term process, driven by pressure on time and enabled by the development of a well-ramified and varied transport infrastructure with several good-price transport options. In the past few years the boom of low-cost airlines has been instrumental in this process, opening up new routes and offering not only lower prices, but also lesser restrictions with respect to length of stay or weekend stay over. Average receipts per trip may also have been furthermore pressed down by the fact that intraregional tourism, with generally lower spending levels recovered quicker than long-haul traffic, together with some price cutting strategies to stimulate recovery.

In terms of the main tourism earners, no major changes are to be mentioned in the first seven positions as compared to 2003. The US ($74.5 billion (Lm26.2bn)) continues to lead the table of the world's top tourism earners and saw a strong comeback in 2004 on the losses of the three previous years as tourism earnings grew by nearly 16 per cent. Spain ($45.2 billion (Lm15.9bn)) and France ($40.8 billion (Lm14.3bn)) occupy the following two positions at a considerable distance. The first three destinations in arrivals are thus also the first in receipts, although in reverse order. Italy maintains firm the fourth position in receipts, ($35.7 billion (Lm12.6bn)), followed by Germany ($27.7 billion (Lm9.8bn)), the United Kingdom ($27.3 billion (Lm9.6bn)) and China ($25.7 billion (Lm9bn)). Turkey ($15.9 billion (Lm5.6bn)) climbs one position to eighth, changing places with Austria ($15.4 billion (Lm5.4bn)). Australia ($13 billion (Lm4.6bn)) closes the list, entering among the first 10 tourism earners in 2004.

Travel industry unites against proposed aviation tax

Bangkok, 25/07/05 - Following the G8 summit earlier this month, travel industry associations are continuing their united opposition to a proposed new aviation tax to fund development in poor countries. The group says aid for developing countries is laudable, but funding it through a new tax on aviation is misguided and counterproductive.

Airports Council International, the Asia Pacific Travel Retail Association, the Association of Asia Pacific Airlines, the Duty Free World Council, the International Air Transport Association, the Pacific Asia Travel Association and the Tax Free World Association jointly denounce the taxation proposal.

The group says any additional tax would decrease airline efficiencies and reduce demand for travel and tourism, which is a major driver of economic development in many poor countries.

The travel industry also believes the proposal would put an unnecessary burden on the travel sector, in particular airlines, which have sustained billion dollar losses over the past four years and must now absorb record-breaking oil prices.

Pacific Asia Travel Association (PATA) chairman Nobutaka Ishikure (who is also Japan Airlines chief industry affairs officer) said: "We must remind governments that airlines are not under-taxed, but are over-charged. Airlines play a critical role as a catalyst for economic development. Development is a serious issue in need of a serious solution. More tax on air travel is not the way forward".

IATA director general and CEO Giovanni Bisignani slammed the proposal, which has divided the governments of Europe. He said: "We are not an industry of millionaire customers able to travel at any price. Air transport is an essential part of the fabric of modern life. If governments are truly serious about development, there are glaring opportunities to generate billions for aid simply by removing trade barriers".

Travel industry research shows that, with related industries, the air transport sector supports  $1.4 trillion (Lm0.5tn) of economic output, or 4.5 per cent of global GDP.

The US Chamber of Commerce head office in Washington DC and the Geneva-based Air Transport Action Group have also vehemently opposed the aviation tax proposal.

Airports Council International director Robert Aaronson said: "Airports are catalysts for economic development by creating jobs, encouraging new business development and building capacity to underpin travel, trade and tourism. Airports have demonstrated their long-term commitment to relevant assistance for developing nations".

Aaronson cited the ACI Fund which finances training for airport personnel to ensure a self-reliant and skilled aviation work force in developing markets. "This is a targeted contribution that is far more meaningful than a new tax", he said.

Association of Asia Pacific Airlines director general, Andrew Herman, said: "Aviation's significant contributions to overall economic development is more widely understood in the Asia Pacific region. Governments should be creating economic opportunities, not imposing barriers in the form of new taxes".

The travel associations opposing the proposed tax believe that development needs commitment, not political grandstanding and that air transport needs common-sense policy and a level playing field, not more taxation.

Corinthia allies itself with US investors group

Mosta, 15/07/05 - Karmenu Vella, chairman of Corinthia Hotels International (CHI) and Frank Orenstein, chairman of Hospitality Investors Group (HIG), made a joint announcement about forming a worldwide strategic alliance whereby HIG will use its international network of relationships to aggressively assist Corinthia in expanding its brand.

The announcement stated that HIG will arrange the critical capital to allow CHI to grow through management contracts to supplement the 20 mostly owned properties that make up its current portfolio of upscale hotels.

The announcement was timed to immediately follow Corinthia's gala launch event in New York on 28 June to introduce the brand to the North American travel industry and press (see Corinthia Hotels launched in the US). Vella is "confident that this new relationship with HIG will enable CHI to evaluate in a timely manner, transactions that will allow us to accomplish our goal of expanding Corinthia's base from 20 properties to 50 in prime international locations over the next three years".

Orenstein, with offices in Scottsdale, Arizona and Paris said "HIG is excited about the challenge of expanding an established brand that has an excellent track record of generating significant returns for owners; and is highly respected in the hospitality field for successfully pioneering some of the hottest destinations - Prague, Budapest, St Petersburg, Turkey and, most recently, Tripoli - long before the well known international brands moved in. There are many areas in the world that would benefit greatly from Corinthia's success strategy and distinct style of hospitality".

Orenstein was instrumental in directing Four Seasons initial growth, expanding Novotel/Sofitel into North America, creating the worldwide brand for Park Plaza Hotels and Resorts and in advancing HIG's portfolio into Polynesia, Latin America, the Caribbean and Canada.

Maltese travel up two per cent in '05

Valletta, 15/07/05 - In May 15,700 Malta residents travelled abroad. Of these, 12,000 departed by air - a decrease of 11 per cent over May 2004, the National Statistics Office (NSO) reports.

In the first five months of the year, meanwhile, 70,820 Malta residents left the islands by air, an increase of 2.1 per cent over the same period last year. Of these, 97.7 per cent spent less than six months away from Malta, the NSO reports. One can, therefore, safely assume that the majority of residents travel overseas on holiday or business On the other hand, 0.4 per cent spent 12 months or more away from islands.

In the period under review, the most popular destination with Malta-based air passengers was the United Kingdom, which accounted for 25.4 per cent of the total number of departures. This was followed by Italy (22.8 per cent), Tunisia (7.8 per cent), Germany (6 per cent), France (3.9 per cent), the Netherlands (3.1 per cent) and Spain (1.1 per cent).

Compared to the same period last year, the number of Malta-based departures to the United Kingdom rose by 2.7 per cent. Substantial increases were also recorded in travel to Germany (8.6 per cent), Tunisia (21.9 per cent) and the Netherlands (22.3 per cent).

On the other hand, between January and May 2005 traffic to Italy was down 0.7 per cent, to France 33.3 per cent and to Spain a whopping slump of 53.3 per cent.

Better air traffic control would save fuel - IATA

Mosta, 15/07/05 - A call by G8 leaders for improved fuel efficiency in aircraft can be answered in part by managing air traffic more smoothly, airline association IATA said earlier this week, Reuters reports.

"Worldwide, airlines could reduce their fuel consumption by up to 18 per cent with optimised air traffic control", Giovanni Bisignani, director general and chief executive of the International Air Transport Association (IATA), said in a statement.

That would also prevent millions of tonnes of carbon dioxide emissions, he added.

Leaders of the Group of Eight (G8) industrial nations, at a summit in Scotland last week, called for accelerated efforts to reduce air transport emissions and improve fuel efficiency.

Bisignani said leaders would help by backing the consolidation of Europe's air traffic systems: "There is no reason why a Europe that can agree on one major currency needs 35 providers of air navigation control services".

As Europe moves closer to the 2008-2012 timeframe it has set for meeting its 1997 Kyoto Protocol greenhouse emission reduction targets, aviation is among the industries under pressure to help meet the goals.

With air traffic in Europe set to double by 2020, aircraft makers such as Airbus and engine makers such as the UK's Rolls-Royce are working on more efficient designs.

"Broadly, the industry has been able to bring down aircraft fuel consumption by about one per cent a year for the last three decades. Each time you do that it means saving 80,000 gallons of fuel for every aircraft every year", said Martin Johnson, a spokesman for Rolls-Royce.

Europe's aerospace industry has set collective targets to make sure it complies with governmental goals.

By 2020, the Advisory Council for Aeronautical Research in Europe (ACARE) has four targets: To reduce fuel use and carbon dioxide emissions by 50 per cent, to cut nitrogen oxide emissions by 80 per cent, to cut noise by 50 per cent and to reduce the environmental impact of manufacturing and maintaining aircraft.

Bisignani said the challenge for airlines was to become more efficient without impeding growth, given that air travel is a driver of tourism and commerce.

"The G8 outlined a common sense approach for aviation and climate change focused on efficiency...The challenge is to achieve the G8's goals while building on civil aviation's valuable contribution of 4.5 per cent of global GDP", he said.

The Geneva-based IATA represents 275 airlines from 136 countries representing more than 98 per cent of scheduled international traffic

Travel costs to increase by Lm26 in the next 15 days

Mosta, 14/07/05 - In the next fortnight the cost of air travel for Malta residents is going up by more than Lm26 per person.

Tomorrow the fuel surcharge on all Air Malta scheduled services will double to €16 (Lm6.87) per sector with the exception of flights to Sicily. And on 1 August the so-called "passenger service charge" will also double from Lm10 to Lm20 for every person who buys an air ticket locally.

Commenting on the increased fuel surcharges Air Malta CEO Ernst Funk says the airline "needs to close the gap and attempt to stabilise its operational budgets. We know that we could be losing some traffic, but we must first and foremost protect the survival of the company".

Air Malta, he says, has "to take this corrective measure to realign our expectations in line with the turnaround plan".

Whilst the surcharge on individual travellers comes into effect on 15 July, the fuel add-on on tour operating fares will be applied gradually. "We are very sensitive to the impact which this measure will have on our incoming tourist traffic", says Funk, "therefore we are scaling in this surcharge as from October, with a lower surcharge in winter and with the full surcharge introduced next summer".

The Lm10 tax on tickets payable for international trips originating in Malta, meanwhile, will be raised to Lm20 on 1 August. Additionally every passenger travelling from Malta International Airport has to pay a Lm6.52 service and security charge; this is retained by the airport operator.

Passengers leaving by sea are charged a departure tax of Lm10 (which is retained by the Malta Maritime Authority) plus a Lm4 embarkation tax, retained by VISET - a privately owned company that runs the sea passenger terminal.

The additional Lm10 tax to be introduced on air travel on 1 August does not apply to sea departures, a fact that the Federated Association of Travel and Tourism Agents (FATTA) said in is discriminating and will give the cruise liner business an "unprecedented advantage".

FATTA filed a judicial protest at the beginning of June against the finance minister, the competitiveness and communications minister and the attorney general to reconsider the manner in which the increase in the passenger service charge is being imposed.

This charge is actually a departure tax, says FATTA. It claims that the manner in which the rise in tax is being imposed breaches a number of EU laws, specifically fair competition, freedom of service provision and freedom of citizens' movement.

Since this charge only applies to air travel, citizens' freedom of movement is being restricted, argues FATTA. European citizens have the right to travel without obstacles or discrimination and the rise in this tax does not allow this, especially considering air travel is the principal means of travel by residents of Malta.

Malta faces legal action on air rules

Mosta, 14/07/05 - Six European Union countries have drawn fire from the EU executive for failing to create penalties for airlines that flout new rules requiring compensation for late or cancelled flights, Reuters reports.

The European commission said it was starting legal action - the first step in a process that could end before the 25 nation bloc's highest court - against Austria, Belgium, Italy, Luxembourg, Malta and Sweden over air passenger rights rules.

The six countries have not set up sanctions such as fines for airlines that disregarded the rules, which went into force in February, it said.

Airlines have to pay passengers up to €600 (Lm257) if they are denied a seat because of overbooking. Passengers whose flights are seriously delayed or cancelled must be given food and accommodation, if necessary.

"I am determined to ensure that the new passenger rights are respected", EU transport commissioner Jacques Barrot said in a statement. "All the member states must have effective penalties, which can be applied to airlines which do not meet their obligations".

Luxembourg also failed to set up an agency or body to watch that the rules were correctly applied, the commission said.

Airlines have criticised the rules, saying they were flawed and potentially damaging to business.

Estonia, Latvia and Malta may also face court action if they do not turn EU rules limiting noise at airports into national law, the European commission also said. The commission said it had sent a so-called "reasoned opinion" to those states.

"Aviation noise pollution is a particularly important issue for European citizens", commissioner Barrot said in a statement.

"I therefore encourage the three new member states concerned to apply as soon as possible this legislation that lays down rules to facilitate the introduction of noise-related operating restrictions in a consistent manner".

Corinthia Hotels launched in the US

Floriana, 14/07/05 - Corinthia Hotels International (CHI) launched its brand in the United States at the end of June. The company, which had formerly been blacklisted by the US government because of its financial links with Libya, held a gala evening at the Mandarin Oriental Hotel in New York City were leaders of the travel industry and business world were invited.

CHI chairman, Karmenu Vella told guests Corinthia hotels are an elegant new option for American travellers, representing luxury and world class service combined with the warm hospitality that is already known to Europeans as the Spirit of Corinthia.

"Corinthia's timing for entering the American market couldn't be better. We want to give the US market more options in terms of brand and destinations and we want the American business providers to have full confidence in us and to trust us with their customers in Europe", said Vella.

"Our premier collection, six of our 12 five star properties, are located in cities that have become hot spots for American business and leisure travellers - Budapest, Prague, St Petersburg and Tripoli. It is also a time when the meeting, incentive, conference and events planners in the US are looking for new, exciting, but affordable, destinations to attract greater attendance at their events. We want Corinthia to become synonymous with the best hospitality experience these destinations have to offer", concluded the CHI chairman.

Also addressing guests was group director for sales and marketing Geoff Andrew, who reiterated that Corinthia is already greatly respected in the hospitality industry as a dynamic and pioneering company, with an extraordinary sixth sense for where the next 'in' market will be, thus managing to establish the CHI image and brand way ahead of more famous hotel chains.

"With more than 40 years of experience, we are proud of the fact that Corinthia is the market leader in upcoming tourism destinations. When Corinthia started looking at expanding outside of Malta, we didn't look at touristically mature destinations, but at countries that were ripe for development and this strategy paid off in the end - Malta in the 70s and 80s; Turkey in the early 90s; and central Europe (Prague and Budapest) in the mid-90s; and now St Petersburg and the Bab Africa Hotel in Tripoli.

"The new hotel in Libya is another example of the pioneering spirit of the Corinthia Group. We started looking at establishing ourselves in Tripoli when no one expected that the sanctions would be lifted and that the country would subsequently open up for business. Again, it was a very courageous move and once more it's paying off. In fact, Corinthia Bab Africa is the only five star international hotel operating in Tripoli", explained Andrew.

CHI general managers and executives from six Corinthia properties were also present at the New York launch and to follow up on a series of sales meetings throughout the country. These were organised by CHI's representatives in the US - the Bradford Group and Gail Flannigan Associates, both based in New York City.

FTI gives MTA airline seats

Valletta, 14/07/05 - For the second consecutive year, German tour operator Frosch Touristik (FTI) will be giving a number of free airline seats, from its charter operations, to the Malta Tourism Authority (MTA) for promotional purposes.

These seats will be used by the MTA to fly journalists to Malta and as holiday prizes to consumers as part of an extensive PR campaign in German newspapers, magazines, television and radio.

As one of the major tour operators selling Malta programmes, FTI also participates in joint marketing programmes that the MTA organises in conjunction with major tour operators in its source markets. These include joint advertising, the organisation of seminars and workshops, consumer and trade mailings and other promotions aimed at increasing awareness of what the Maltese islands have to offer.

Air Malta reorganises its overseas offices

Luqa, 14/07/05 - Air Malta expects to save Lm1.35 million over three years by closing several of its offices abroad.

So far the company has saved "close to" Lm500,000 in the past year, says Joe Cappello, Air Malta's chief operating officer,

The flag carrier has already closed its outstations in Egypt and Morocco and is being represented there by general sales agents. The Amsterdam and Brussels offices have been amalgamated under one manager responsible for the Benelux and is based in Brussels.

The office in Milan is being closed and its functions will be transferred to the airline's Rome office. In Zurich the office will be manned by local staff and will be run from head office. In London, Paris and Frankfurt, the number of Maltese personnel has been reduced.

Air Malta has also closed its Terminal 4 office at London's Heathrow. Here, KLM has been contracted to carry out "general supervision and operational coordination". However, an Air Malta station manager is being kept at Heathrow "to ensure service delivery and quality levels".

Commenting on the changes at London Heathrow Cappello says "we are following others in our industry. Our size no longer justifies having our own set-up at Heathrow; third parties are now able and willing to provide a high level of service and quality to their airline clients at reasonable costs. In fact, this type of system has been in place in Air Malta for years at a number of other major airports including Gatwick, Manchester, Frankfurt, Amsterdam and Paris".

Radisson introduce defibrillators in its Malta hotels

St George's Bay, 14/07/05 - Rezidor SAS Hospitality, the Brussels-based hospitality company has collaborated with Medtronic, a medical technology company, to provide automated external defibrillators (AED) in each of its hotels across the Rezidor SAS brands - Radisson SAS, Regent, Park Inn and Country Inns & Suites in Europe, the Middle East and Africa.

The Radisson SAS Bay Point Resort and the Radisson SAS Golden Sands Resort & Spa will be the first hotels in Malta to enhance the commitment to guest safety by providing this tool. A staff-training programme for health and safety officials in conjunction with St John's Ambulance is being held to ensure that employees are able to react promptly and accurately in any given situation.

Automated external defibrillators are a proven tool in the event of sudden cardiac arrest (which often leads to heart attack) - the world's number one killer. It is also the cause of concern for many of today's travellers. In the event of such an incidence in a hotel, staff is not necessarily trained or equipped to respond to it. Deterioration in the condition of the patient is very swift. Yet there are a numerous known cases about those who survived a cardiac arrest when AED was available.

On the introduction of this latest service for guests at the two Island Hotels Group properties, Winston Zahra, director of operations and marketing says "the automated external defibrillator integration in our resorts shows our commitment to the overall safety of our guests. We want to ensure that we offer all the tools available to improve guest safety in our properties. We want all our guests to have tranquillity and peace of mind that they are safe with us and this added tool helps create this feeling".

New salon at Marina Hotel

Sliema, 14/07/05 - A new hair salon has just opened at the three star, 78-room Marina Hotel in Sliema. Located on the ninth floor, the salon is run by a Bulgarian hairdresser.

Increase in private-public partnerships boosts WTO affiliate membership

Madrid, 14/07/05 - The World Tourism Organisation (WTO) has seen a surge in its affiliate membership with 23 more companies and institutions joining the organisation in June, among them the international meetings association Meeting Professionals International (MPI).

Eleven of the new members approved by the organization's executive council are from Europe, seven from the Americas, two from Africa and one each from Asia and the Middle East.

"This big increase in membership demonstrates that the private sector is recognising the power of increasing public-private partnership, following the shift in WTO strategy towards becoming a more result-oriented international organisation", said affiliate members' chief executive officer Antonio de la Morena. "It shows the organization is now seen as a true leader of world tourism, not only by the sovereign states - five more of which will join WTO this year - but also by the private sector.

"Reinforcing the representation of the private sector and civil society is a priority of the organization, an objective in line with the general guidelines laid down by the United Nations, which invites its specialized agencies to expand the role of representatives of civil society", said de la Morena.

De la Morena said he was particularly pleased to see media companies joining the affiliates, with TTG Italia among the three latest new members from Italy. The others are the leading non-governmental organization Istituto Cooperazione Economica Internazionale (ICEI) and the University of Molise.

Others from Europe are: European Cities Tourism, Tourism Promotion Services (Serena Hotels) and the Aga Khan Fund for Economic Development from France; Travel Media Applications, which specializes in information and communication technologies (Greece); the Turiba School of Business Administration (Latvia); Izmir University of Economics (Turkey); air transport facilitation company Route Development Centre (UK), and the Danish association HORESTA which represents the country's hotel, restaurant and tourism sector.

Another new member is the Foundation for Environmental Education (FEE), which manages the Blue Flag campaign for safe beaches in Europe as well as supporting nature protection in Europe and other continents.

From the Americas, there are fair organiser Expo Mundial de Turismo and leisure park and accommodation group Grupo Xcarret (Mexico); the Nevada Tourism Commission and event organisers World Tourism Consultancy (US); the Quebec Tourism Industry Corporation (Canada), the Northeast Tourism Integration Foundation (Brazil), and Proexport, which specializes in the international promotion of tourism (Colombia).

New members from Africa are the Kenya Tourist Board and the Tabasheer Travel & Tourism Agency (Sudan); from the Middle East the Middle East Automobile and Tourism Club (Saudi Arabia); and from Asia the Papua New Guinea National Cultural Centres Trust.

The WTO currently has more than 300 affiliate members grouped into three councils: the business council, the education council and the destination council. The strategic marketing plan aims to increase membership to 500 by the end of 2007.

ICAO standard for machine-readable passports made mandatory

Mosta, 14/07/05 - Machine-readable passports in the format specified by International Civil Aviation Organisation (ICAO) became the worldwide standard on 11 July, the organisation announced from Montreal. The 188 member nations of ICAO - of which Malta is a member - have agreed that all must begin issuing ICAO-standard MRPs no later than 1 April, 2010. Some 110 countries already do so.

"Cooperation among all ICAO contracting states in the implementation of this new standard is essential for meeting our global objectives, to minimise delays in border-crossing formalities and to safeguard international civil aviation operation against acts of unlawful interference," stated ICAO president Assad Kotaite.

More than 40 ICAO members that already issue ICAO-standard MRPs plan to upgrade to the biometrically enabled version or e-passport by the end of 2006, according to ICAO.

Emirates to fly DXB-MLA via Larnaca, Air Malta to code share

Mosta, 04/07/05 - From 1 October Emirates will operate four flights a week from its home base in Dubai to Malta via Larnaca. Air Malta will be code sharing on the Malta-Larnaca sector, Island Travel Trader Online has learned.

Flight EK107 will depart from Dubai on Mondays, Wednesdays, Fridays and Sundays at 08:35, arriving in Larnaca at 11:15. The Larnaca-Malta sector will take-off at 12:15, landing here at 14:10. The return flight, EK108, will leave at Malta at 15:4, arrives in Larnaca at 19:15 and departs the Cypriot city at 20:15. It arrives in Dubai at 00:30 the following morning.

Emirates plans to use an Airbus A330-200 with 12 seats in first, 42 in business and 183 in economy class, plus up to 17 tonnes of cargo space in the hold.

Emirates' began operating to Malta in March 1998 with twice-weekly flights. Seven months later it increased its operations with a third flight via Athens, which was later substituted by Tripoli. It launched services to Larnaca in November 1994.
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