Madagascar tourism operators are making huge efforts to influence the government and urge the authorities to rescue the national carrier, Air Madagascar. The national airline of Madagascar has serious financial problems and representatives of hotels, travel agency and the tourism office in the country are rightfully worried about how a possible bankruptcy and cease of operation would affect them.
“The airline is facing extra costs and has “obvious cash-flow problems” related to leasing contracts since the European Union banned its two Boeing planes from using European airspace in April, the group said in a statement published in the Antananarivo-based Midi newspaper today,” explains Hannah McNeish, Johannesburg correspondent for Bloomberg.
Tourist arrivals are expected to increase by 30% this year compared with 2010, according to the group. They however did not give any details on the forecast of if it will be affected by the demise of Air Madagascar.
If however tourist arrivals decrease due to the country’s national airline no longer flying them in, hotels, restaurants, travel agencies and other tourism companies are bound to face serious consequences, as travel spending decreases. As tourism is one of the leading industries that generate income in Madagascar, the government has valid reasons to bail out the air carrier.
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