Be forewarned, this is not an article about product. Too often have I listened to stakeholders talk on branding, with the focus remaining on product. This is not to say that product improvement is not important. It indeed remains vital. Nevertheless, the discussion on branding should focus less on product improvement and more on destination perception and image.
From a historic perspective, Malta has followed a fairly traditional lifecycle. However, current accommodation overcapacity, reduction of demand from a price-sensitive consumer, low profitability of the private sector, superficial acknowledgement of unique attractions by target consumers and high dependability on intermediaries, such as tour operators, all indicate that the tourism industry has reached the post-mature or declining stage. Indeed, Malta continues to lose market share due to more affordable long haul travel, cheaper emerging destinations in the Mediterranean, low-cost carriers affecting tourist flows and the destination's reliance on a declining VFR (visiting friends and relatives) market.
The initial response to this scenario has been price reductions to stimulate demand and ensure profitability. However, pursuing a low profit, high volume strategy can lead to a reduction in destination quality, hence furthering decline.
Moreover, taken beyond the industry's sustainable development, such a course can lead to the loss of Malta's unique attributes, making all tourism activity questionable.
This is where branding (or rebranding, to be more precise) comes into play. Regardless of where a destination stands on the lifecycle, the key issue remains garnering a differential advantage by offering a uniquely perceived value not easily offered by competitors. The word "perceived" in the previous sentence needs highlighting. With increasing destinations to choose from, but less time on their hands, consumers are more likely to base visitation on which destination has the more favourable image.
Tied with the realisation that Malta is currently in its maturing stage, the broad aim of the branding exercise should be to rejuvenate the island's image, and position it whereby it is perceived to have special attractions not found elsewhere, albeit remaining true to its product. Moreover, the brand must counter the current superficial awareness, and function as a springboard for a single recognisable physical icon in a similar tune to Sydney's Opera House or the Statue of Liberty, in New York.
Malta's small market share, both in terms of visitation and promotional expenditure, characterises it as a challenger brand. Since we cannot outspend competitors, we must outsmart them. The challenge for Malta is to stand out against established European destinations and cheaper emerging markets, within the constraints of comparably limited promotional resources. Effective branding will not come about by imitative or copycat strategies.
Locating a differential advantage and unique position in the minds of potential consumers is not something that has been achieved so far. Indeed, Malta's image is strongly based on stereotypes and assumptions of similar or neighbouring destinations.
A challenger brand such as Malta needs to recognise that, if it is to make an impact and grow market share, it must begin to act differently and focus on particular activities where the island can truly offer something different. Moreover, Malta needs to be innovative not only in what it offers as a destination, but also in how it communicates to potential visitors.
Mr Saliba read an MA in marketing communications at Bournemouth University, with particular attention to destination branding.
saliba.kevin@gmail.com