Making Malta a cheaper destination 'will hurt it'

Talks between the government and low-cost airline Ryan Air are expected to start soon with the aim of launching operations to and from Malta, the Malta Hotels and Restaurants Association's new president, Justin Zammit Tabona, said.

According to Mr Zammit Tabona, the introduction of low-cost airlines should be considered closely, not to the detriment of the national carrier but as another means of bringing over tourists and also for the benefit of the Maltese.

Talking about the positive ripple effects on destinations that are serviced by a low-fares airline, Mr Zammit Tabona pointed out that travellers would as a result be prepared to spend more on accommodation and dining experiences.

Ryan Air would bring to Malta up to 50,000 tourists a year, meeting the target the government has set for the Malta Tourism Authority and earning it the promised Lm500,000 bonus.

Mr Zammit Tabona has succeeded Winston J. Zahra as president of the MHRA. Involved in the tourism industry for the last 10 years, he is also managing director of Xara Palace Relais & Châteaux and Club Salina Wharf.

Outlining the objectives of the MHRA, he said it was currently working on finalising a European project, HOTSME, in collaboration with the MTA, whereby the EU would be funding €460,000, divided between six participating countries, for training and human resources development in the three-star hotels market and possibly even restaurants. The agreement should be signed in the coming weeks, he said.

The MHRA also plans to continue enhancing its relations with the Malta Business Bureau and to work with its trustees, the Federation of Industry and the Chamber of Commerce, to seek further funding from the EU.

The association aims to keep its seat on the board of the restructured MTA, Mr Zammit Tabona said, insisting on the importance of its presence, together with that of other organisations that represent the industry hands-on.

"The best way to have a finger on the pulse is through the representation of those who work in the industry," Mr Zammit Tabona said.

Education of the Maltese people on the importance of tourism was high on the MHRA's agenda and Mr Zammit Tabona appealed to the Maltese to understand that visitors were the main contributors to the country's economy.

The education - of both those directly and indirectly involved in the business - was a major role for the association and the idea was, for example, to organise site visits to hotels, restaurants and other developing projects by the Institute of Tourism Studies students.

Malta must always be seen as a value-for-money destination, Mr Zammit Tabona insisted.

It was important for the island to push itself up the ladder of the Global Competitiveness Report, published by the World Economic Forum, and that saw it fall from 19th to 32nd position.

Government spending has to be controlled and the product has to continue to be enhanced, he said, calling for more coordination between ministries.

The MHRA welcomed the Prime Minister's announcement to chair an inter-ministerial working group, related to tourism, giving the industry its due importance.

Following the budget 2005 announcements, which the MHRA also welcomed, it will discuss with the government any VAT removal on the conference and incentive market.

It has presented to the government a document on the experimental reduction of VAT on restaurants in five countries, which resulted in an increase in business and employment and the opening of more restaurants. The idea is to present the report to the MEPs at the beginning of next year, Mr Zammit Tabona said.

The MHRA was also proposing to spread the savings on water and electricity bills more fairly throughout the hotel industry. As it stood, big hotels, with bigger bills, would be advantaged and would save much more than others. A meeting has been requested to discuss and finalise the matter, Mr Zammit Tabona said.

Speaking of the importance of the MTA offices in the key markets overseas, he said they would not be closed - as had been suggested - but their administration would be centralised back to Malta.

With regard to the drop in tourist arrivals from the UK, the MHRA president said it could also be a question of marketing and the fact that MTA officials, for example, had contact details of people who were no longer working in the industry.

The restructured MTA had to be more accountable and assess its marketing efforts and programmes properly. It was important to see where the marketing efforts were being directed, Mr Zammit Tabona said, adding that the restructured MTA would be more focused, something he considered to be positive.

Mr Zammit Tabona underscored the importance for hotels to be "strong with their rates, despite the tour operators' insistence that they lower them. It is up to the hotels to hold out". "At the end of the day, if they have a good product they should be bullish about it and not reduce their rates. Making Malta a cheaper destination is just hurting it."

The MHRA urged the government to take its pending decision on golf courses in two sites. Another two golf courses in Malta and Gozo would definitely improve the overall product, particularly in the shoulder months, Mr Zammit Tabona said.

"We need to decrease our dependency on the high season and take advantage of one of Malta's greatest assets - its year-round mild climate. Where in the world is there such sunshine a few days before Christmas?"

Mr Zammit Tabona said St George's beach should continue to be upgraded to blue flag standards - a European benchmark for water quality, cleanliness and facilities at beaches - and other beaches should be worked on and even privatised, if necessary, to be brought up to such standards.

He pointed out that the government should have had an alternative in place before stopping the helicopter service to Gozo to avoid a standstill. The MHRA felt it was unfortunate that Gozo's tourism industry was not given due importance and has proposed a shuttle service from the airport to Cirkewwa every 30 minutes in the interim period until the service is reinstated.