Air travel and tourism in Malta : impacts of low-cost airline introduction

Abstract

The introduction of low-cost carriers (LCCs) is strongly related to air traffic movements and the tourism sector. This is especially so for island destinations where the role of tourism is critical to maintain economic growth. This paper analyses the impacts of low-cost airline introduction in the islands of Malta. The impacts of low-cost aviation have been widely studied, with similar results of increased traffic and tourism at destinations. However, when the destination is an island state, and a member of the European Union with limited land and space resources, the impacts of increased LCCs and tourism activity can have significant impacts. Shortly after joining the EU in 2004, the Maltese Government enacted policies to encourage greater LCC services to Malta with a goal of increasing and diversifying tourism activity.