Tourism seen starting long road to recovery

The situation in tourism seemed to be improving slightly but there was a lot of catching up to do seeing that arrivals had dropped by 12 per cent over the past two years, the president of the Malta Hotels and Restaurants Association, Winston Zahra said yesterday.

Speaking during a meeting between a delegation from the MHRA and Prime Minister Lawrence Gonzi, Mr Zahra said that the past two to three years and the first quarter of this year had been very difficult.

A turnaround started being expected in November and a somewhat more positive picture, reflecting an increase of between two and four per cent over last year's figures, was expected this quarter.

But one had to keep in mind that there was a lot of catching up to do, considering that last year and the previous one had been very difficult.

Mr Zahra presented Dr Gonzi with a position paper and supporting documentation on the situation in tourism.

The meeting discussed the industry's expectations, the Maltese product, marketing and constructive ideas to improve the situation.

The MHRA delegation pointed out that there was an oversupply in bedstock and a lack of demand. It highlighted the work it was doing to ensure that the advantages and opportunities of EU membership were tapped. It also spoke about niche markets such as the conference and incentive sector, the cruise liner business, heritage tourism, the film industry and golfing.

The meeting also discussed Air Malta, Gozo and the structure of the Malta Tourism Authority. Mr Zahra stressed that government-induced costs and expenses related to EU bureaucracy had to be avoided at all costs.

He described the meeting as a very constructive one which was to be regularly followed up.

Dr Gonzi said that tourism was one of his government's priorities. The sector had gone through a difficult period also because of the international situation. A lot still had to be done for the country to better exploit and develop tourism.

Malta, the Prime Minister said, had its limitations but the government was making an effort to reach high levels of efficiency.

Dr Gonzi's meeting with the MHRA was followed by another with the Confederation of Malta Trade Unions.

Dr Gonzi said this meeting provided an opportunity for the discussion of issues of national interest, such as pension reform and the social pact. Was the country capable of identifying cardinal issues so that it could move ahead in a competitive manner, he asked.

The government, he said, was prioritising the internal restructuring process and it was important that it reduced its expenditure to get the best out of the country's resources.

CMTU president Alfred Buhagiar said that now that Malta had become a member of the EU, it had gained a new status within the Trade Union Council, which was the only body recognised to speak on behalf of unions in the EU.

Mr Buhagiar said that together with the General Workers' Union, the CMTU was expected to participate and make decisions within this organisation.