Still a long way to go

It is encouraging to note some positive signs in our tourism industry, but growth is still too weak and uneven. We are still lagging behind competing destinations in the Mediterranean, where growth has been 4.2% in the last 10 years which is above the world average of 4.1%. A study by the World Tourism Organisation (UNWTO) published recently at the International Tourism Fair in Rome shows that with 262 million international arrivals, the Mediterranean captures 33% of world tourism.

According to the UNWTO, Mediterranean tourism has reason to be optimistic. Its report forecasts that although the region is likely to lose market share to upcoming destinations, especially the Asia-Pacific region, its tourist arrivals will grow as the world tourism market expands. The Euro-Med region currently has around 35% of world tourism receipts and is predicted to register an average growth of 4.8% in the near future, according to the UNWTO's latest barometer.

To be at least in line with other competing European and Mediterranean destinations, Government had committed itself to increase the number of tourists by 150,000 between 2005 and 2007. This target is going to be missed. Real recovery needs more vigorous growth than we are now seeing. Hoteliers in most of the four- and five-star category in Sliema and St Julian's are optimistic that the situation is getting slightly better, but they are very worried about next winter. They are also not happy with the rates they are achieving. Most of the hotels in Bugibba, Mellieha and Gozo are still struggling to make ends meet as their occupancy level is lower than the national average. The only four-star hotel in the South has also closed down.

It is still too early to celebrate. To ensure a real turnaround and future success we need to address deep-rooted problems that the PN government has allowed to pile up and swept under the carpet, hoping they would go away. We need to rejuvenate an aging tourism product. We need to diversify. We need a better mix of accommodation. We need to engage in sustainable tourism development.

While other destinations in the region have renovated their product by following strategic action plans, the PN government lacked leadership and vision in tourism and allowed the industry to drift aimlessly. The plans published recently are very poor and were put together hurriedly to give the impression that government has finally formulated a plan for tourism.

Moving into the 21st century

Our industry still has a long way to go to move into the 21st century which has seen the arrival of low-cost airlines and the effect of direct sales channels such as the Internet and TV travel channels that are challenging traditional tourism products and distribution routes supplied by the package holiday and tour operators.

We are still wasting precious money on traditional advertising, PR and marketing and still not making effective use of the new electronic media used by an increasing number of travellers. We are still not being creative and pro-active in taking ourselves to today's travellers. We still need to realise that tourism is consumer- rather than supplier-driven. We still need to develop our product and design it in a way that is relevant to today's travellers. We need to listen more carefully to consumers and communicate better with the source markets that we have tapped traditionally and to venture in new markets that will give us the growth we need.

The PN government's strategy to cope with all these challenges has been very simple and very transparent. All the vociferous critics have been co-opted by being given some measure of responsibility so that if the situation does not improve, they cannot blame the government. But Government does not have the necessary resources to co-opt the whole sector. Many voiceless tourism operators feel abandoned to their lot.

Hoteliers in the three-star category, many bar and restaurant owners, divers' clubs and other tourism service providers, who are too fragmented and weak to make their presence felt and heard, are being neglected. Although their concerns do not make it to the media, they are very real. Hundreds of businesses are being badly hit and with them thousands of self-employed and employees.

While budget hotels around the world, including top European cities, are doing well and their prospects look even better, three-star hotels in Malta and Gozo are suffering badly and struggling to fill their beds. In Bugibba alone, in the last seven years, 22 hotels closed down. Another two hotels with 1,400 beds will close down by the end of this year. More of them will be going out of business as their costs continue to rise and their revenues keep falling. Their operating profits have been falling by double digits. Their energy costs with the new water and electricity surcharge are pushing them to the limit. Business for them has been particularly bad these last two years. Their room rates are lower than they were in 2002.

New hope for the neglected

Our three-star category feel not only ignored by Government and the Malta Tourism Authority (MTA). They also feel that they have been treated with contempt as if they are inferior beings and an embarrassment instead of being encouraged and helped financially to upgrade their standards.

These hoteliers have grown tired voicing their concerns over the same issues time and time again. They want action before it is too late. They want Government and MTA to help them market this sector. They need help to train and improve the skill level of their employees. They need assistance to improve their product and their services. They cannot afford the high taxes, water and electricity surcharge and a host of other costs to comply with a lot of new regulations that have been brought in too quickly. They want the authorities to clamp down on the timeshare touts that continue to give a bad name to our country by their aggressive and offensive behaviour towards tourists.

In its policy to rejuvenate our tourism industry, the Labour Party is paying particular attention to the three-star hotels' plight. The Labour proposals include a strong marketing and promotion campaign for this sector, incentives to improve their facilities, funds to innovate their product and services, the creation of schemes to help upgrade their management and train their staff.

Three-star hotels would also benefit greatly from Labour's decision to draw up a national strategic plan in tourism where they play a prominent role along with four- and five-star properties. Another important Labour proposal from which three-star hotels (and restaurants and other tourism service providers) would benefit would be the reduction of taxes and the creation of a more business- friendly economic environment in the country.

Labour believes that three-star hotels are indispensable for the country, as we need the necessary volumes of tourists to have more people in jobs and to ensure that our islands regain their viability as a tourist destination and sustain the livelihood of thousands of families. They also generate business for many bars, restaurants, souvenir shops and other tourism service providers.

evaristbartolo@hotmail.com