Growth of the maritime industry in Malta seen in the light of Malta's accession to the European Union

Abstract

In addition to a well-renowned international ship register, Malta offers other services including ship building and repair yards, a cruise liners' hub, modern facilities for transhipment and distribution, international yacht marinas, ship supplies and towage services, bunkering and a very successful, efficient Freeport and oil terminal. Given the wide range of activities which make up the maritime sector in Malta, this study focuses on the areas which the author believes to be the backbone of Malta's maritime heritage. The Introduction deals with current policies which are being developed by the European Commission in an attempt to consolidate its fragmented maritime interests. The chapter outlines the recently proposed Integrated Maritime Policy for Europe, as well as the potential for maritime clusters. The chapter also sets the scene with a brief analysis of Malta's main maritime sectors. Chapter two focuses on the impact of European Union membership on ship registration and the Malta flag, which strives to maintain its status as a flag of confidence. The controversial Euros register, State aid to maritime transport and the success of the Maltese tonnage tax regime are also considered in this chapter. Chapter three extensively reviews the cruise tourism sector which is currently experiencing steady growth, particularly in Europe. Many ships are being deployed to ply European waters. Despite fears that the peripheral state of Malta in the European Union would be abandoned in favour of potentially more tax efficient non-EU ports, it has continued to thrive as one of the top ten ports of call in Europe. Chapter four examines the yachting industry in Malta in terms of services offered and berth opportunities. Currently there are limitations which could potentially detract from this lucrative industry and need to be addressed. Chapter five looks at the current state of affairs of the ship building sector in Europe and focuses on the precarious state of the ship building and repair sector in Malta. This sector could also be seen to have suffered most in Malta's accession to the European Union, particularly through the European Commission's drive towards a market economy through the removal of State aid to the sector. In concluding, it is clear from the outcomes of this thesis that EU membership has added immense value to maritime Malta in leveraging its strategic position.