Gearing for the future

Malta is now experiencing the day-to-day reality of being a member of the EU. Since May 1, other member states are looking at Malta from a new vantage point: as fellow operators in the EU market. Our potential as a business partner has drastically increased, as has our attraction as a possible tourist destination.

These exciting new possibilities were touched upon in general both by the Prime Minister as well as by the president of the Malta Trade Fair Corporation in their speeches at the official opening of this year's edition of the International Trade Fair on June 28. This event is undoubtedly the key annual showcase for our commercial sector and the major annual business opportunity for operators in the local exhibition industry. Now that this year's edition of the fair is over, it is therefore timely to look at the challenges that relate in particular to the local conference and exhibition industry and how this particular sector could best benefit from a future within the EU.

The starting-point for this discussion, in my view, is that it is time to think beyond the confines of the local market and the traditional exhibitions that have to date sustained it and, armed with our new EU credentials, expand and diversify our product to tap into the international conference and exhibition market. This point was very well made in the article by the Minister for Tourism and Culture Francis Zammit Dimech entitled Our Annual Showcase (The Sunday Times - July 4), where he presents this as an opportunity to establish a niche for Malta as a conference and exhibition destination.

In a similar vein, over the past days there has been some debate in the media, particularly from GRTU sources, regarding the effectiveness of the International Trade Fair, with reports of a drop in sales compared to previous years. Such commentators (including the minister himself in his article) argue that consumer behaviour is now changing due to the wider choice of goods available at better prices and that consumers are no longer prepared to wait for the Trade Fair to purchase certain goods. I would agree that this seems to be the prevailing trend, although I view it rather as a positive indicator of an open and competitive local economy. Yet, I do not agree that the International Trade Fair has lost its commercial value.

Let us rather think in terms of shifting the fair's focus from its traditional role as a cut-price "general sale" of goods towards presenting new and innovative products to the local and international market in a slick and entertaining manner, where success is measured not so much in immediate, on-site sales but rather in terms of growing consumer awareness and brand loyalty.

The international dimension of the fair should also be strengthened. I believe these developments will ensure that the fair will continue to be the foremost commercial event of the year.

Beyond the International Trade Fair, and with this changing scenario in mind, what is the best course of action for the local conference and exhibition industry? Although most operators are now geared to the meet the international levels of service expected in this field, many facilities have remained static, with the exception of enlarged covered spaces with the introduction, some time earlier, of the use of tent structures. There is a pressing need for a venue designed and built to international specifications and offering all the facilities that one should expect to find in an international centre.

Within this context, the expiry of the lease of the Trade Fair Grounds in three years' time is a blessing in disguise and the corporation should be lauded for its efforts to secure new land from where to operate a new venue to be designed and managed to international standards. As the minister rightly pointed out in his article, this investment should signal a welcome decision by the corporation to take a more proactive role in attracting the large-scale business that we have so far missed out on due to our current limitations. I wish to take this opportunity, therefore, to outline what in my view are the main standards, services and facilities that such venues should offer if we are to compete effectively in this new environment.

We need a venue with a multi-purpose hall capable of accommodating at least 3,000 people seated in class-room style, together with approximately another 5,000 square metres of adjacent open exhibition space. This combination of facilities is essential given the emerging trend of complementing conferences with focused exhibitions that target the conference delegates - this point is also emphasised by Minister Zammit Dimech in his article. Ideally, hotel accommodation should also be close by. It may not be possible to have such facilities within the venue itself, however, due to our compact size, I think a short bus drive of, say, 10 minutes, will not annoy any delegate and should not detract professional conference organisers (PCOs) to select Malta for their larger events as against other countries both in Europe and the Mediterranean where distances cannot be compared with those in Malta.

Coupled with these plans for a new venue, this last year has also seen a positive change in the way the corporation is managing its operations. This entails a marked reduction in the bureaucratic procedures that have tended to stifle business and the introduction of a more customer-oriented approach and "can-do" attitude in general. This is a welcome development compared to the more traditional management system within the corporation's council which, from time to time, tended to lose sight of the fact the corporation was a player in a competitive and ever-changing market.

The importance of minimising red tape also appears to have been taken on board at a political level and I welcome Minister Zammit Dimech's assertion that bureaucratic delays must not be allowed to hinder the corporation's smooth migration to the new facilities.

Having the new exhibition and conference centre would mean that Malta is out there to compete with the best. Malta would then have to work hard to promote the new venue so that international organisers would sit up, take notice and hopefully place Malta on their list of key event locations in the centre of the Mediterranean, on the southern border of the newly-enlarged Europe.

These aspirations cannot be achieved by the corporation alone and the best way forward would be for the corporation to find a strategic partner to invest in the new venue and assist in attracting international exhibitions to Malta. A concentrated effort by the authorities is also needed to reinforce the investment made in new venue locations. The economic argument in favour of such support is clear: this is an industry that could easily generate over 500 new job opportunities while at the same time injecting more foreign currency into our economy.

Keeping the larger market we wish to tap in mind, what is currently on offer beyond the Trade Fair Grounds? Other existing facilities, although in many cases well constructed and equipped, or of considerable historical importance, are just not big enough to attract this new level of business. We have the Mediterranean Conference Centre (MCC) which can accommodate 1,500 persons theatre style and the new Hilton Convention Centre with roughly the same space available. Both also have exhibition areas but these are still nowhere near what is now being requested by international organisers.

We lack modern and larger syndicate rooms, with attractive spill out areas, and landscaping and parking facilities for coaches. In the case of the Mediterranean Conference Centre, the solution could lie in the rehabilitation of Evan's Laboratories and/or the current site of the Police Academy, with the creation of underground parking facilities for over 600 cars and more multi-purpose halls, all linked to the existing centre. If this idea were actioned, coupled with a re-commencement of the construction of the new hotel on the ex-Excelsior site, the proximity of Le Meridien Phoenicia would mean that Valletta would really have a one-stop shop conference and exhibition centre, surely an invaluable boost to current plans to reinvigorate our capital city.

One should also not forget the former ice rink, linked to the Intercontinental Hotel in St George's Bay, a 2,000 square metre facility which offers many advantages except for its location which, although next to a parking facility, still misses the wide open space for coach parking and handling of large groups which could be accommodated in the "golden mile route" where the five- star and other hotels are located.

All in all, I think that rather than having fragmented centres that do not quite offer the full service, a purpose-built, well-planned and designed venue would be the new start for the industry that so many are hoping for. Time is against us and we just cannot afford to lose any more business that we have already.

As things currently stand, events organised in Malta for more than 1,000 persons create logistical difficulties for all concerned. Take, for example, the meeting for Commonwealth Heads of State and Government that will take place next year in Malta - a huge event that will see us all stretched to full capacity, because there is no single venue that can accommodate all the requirements for staging such an event.

We have also heard all the jokes about the shock to all concerned if Malta were to win the European Song Contest and be forced to host the event the following year. The reality is that we still do not have the venue to stage such an event and would be forced to use a tent structure when other countries have specific built-up sites for such purposes.

My conclusion, therefore, is that establishing the right venue once and for all that can compete with others in the region for larger conferences and events is the key to the long-term growth of our industry. I fully agree with Minister Zammit Dimech's view that this will in turn generate "a new level of tourism activity that could have tremendous economic spin-offs" and will in itself trigger growth in other related sectors, such as destination management companies (DMCs) and companies involved in conference and incentive travel. Indeed, this benefits the tourism sector as a whole given the opportunity of repeat business if Malta strikes a chord with the delegates who visit us.

However, the venue is only a start and we must not forget that judgments are made on the whole package of sights and services on offer. We will then need a concerted effort by all concerned to meet the quality standards required in events of this calibre. These include DMCs, the police force, immigration officers, restaurants, taxi and coach drivers, tourist guides and many others - all have to understand that they are servicing one of the most vital sectors of our economy.

Needless to say this is a cutthroat business and we face competition from all quarters of the Mediterranean - from Spain to Turkey - where venues of this nature are already well established.

Another aspect to keep in mind is that conferences and exhibitions are short-lived events and so lengthy bureaucratic procedures should be eliminated otherwise we risk discouraging business.

So, what does the future hold for Malta's conference and exhibition industry? We have reached a stage where we must open up to new horizons or we risk losing the edge and momentum that has driven us so far. As borne out by the changing consumer response to the Trade Fair I have referred to earlier the local scene has, in my opinion, become rather repetitive and needs the influx of new ideas and methods to boost the interest of both visitors and exhibitors. However, the most lucrative business for our industry can only come from overseas exhibitions.

Geographically equidistant from Europe and North Africa, Malta has traditionally been a meeting place for different cultures and peoples. This historical legacy has been intensified by our membership of the EU. The timing is therefore right for the conference and exhibition industry to take a decisive step towards expanding our business once and for all. I firmly believe that we have the capability, confidence and commitment to do it.

Mr Casapinta is managing director of Casapinta Design Group Ltd.

www.casapinta.com