Air connections crucial factor in recovery of tourism

If Malta is to benefit from the eventual post-COVID-19 recovery, it will be crucial for the island to restore or replace the significant number of direct air connections lost during the pandemic, according to a policy note prepared by the Central Bank of Malta.

In 2005, Malta had 84 direct air connections but this had improved drastically by 2019 to 125. The improvement was also seen in terms of spread across countries, with Malta having direct flights to 27 countries in 2005, and 40 in 2019 – with Libya being the only destination to lose its connection during that period.

However, COVID-19 dealt air connectivity a significant blow: in 2020, over 50 direct connections were lost, with just around 70 remaining active. Those dropped included connections to large hubs such as Doha and Dubai, hindering indirect connectivity offered by these hubs, particularly to Asia and Australia.

Air connectivity plays a key role in facilitating economic development through various channels – such as the tourism and aircraft maintenance industries – as well as indirect and induced impacts – and those where connectivity acts as a catalyst. The relationship between air connectivity and the economy goes in both directions, as for example, the development of infrastructure such as airports provides an opportunity to promote exports (such as tourism), enhance business operations and productivity, as well as influence company location and investment decisions.

The policy note stressed that policymakers should strive to retain and improve connectivity to large hubs.

“While COVID-19 has wiped out a significant number of direct connections from Malta, including connections to important hubs, restoring such connections or establishing alternative ones, will be crucial for the economy to benefit from the eventual global recovery in a post-pandemic environment,” the note concludes.