Diving: Gasping for air?
If the number of websites devoted to diving in the islands is any indication, then this is a buoyant industry. Then again, it all depends on whom you talk to. Some diving operators claim they barely make ends meet; others say they've never had it so...
If the number of websites devoted to diving in the islands is any indication, then this is a buoyant industry. Then again, it all depends on whom you talk to. Some diving operators claim they barely make ends meet; others say they've never had it so good.
First, some numbers. According to National Statistics Office data, there were 5,581 registered Maltese divers in 2005 - one may assume there are more now; most do not need the services of a diving centre, except, in some cases, to hire or fill oxygen tanks. There are now 44 dive centres - they do not generally like to be referred to as schools, although their umbrella organisation is called the Professional Diving Schools Association - up from five in 1970, when the industry started to take off or, in this case, plunge.
These centres cater primarily to foreigners who travel to the islands for some of the best diving in the Mediterranean. Official estimates say some 53,000 divers came to Malta last year, about the same number as in 2006, but according to a local dive centre operator the figure is probably closer to 40,000.
"Most centres are uneasy about releasing figures," he said, "because of tax reasons".
If he is right about the overall numbers then the industry has not grown quite as dramatically in the last few years as one is led to believe. Whatever the real figure, the diving segment accounts for no more than 4 per cent of inbound tourism to the islands.
According to Malta Tourism Authority (MTA) estimates for 2000, 38,588 people came to Malta to dive, up from 36,750 in 1999. Consequently, based on MTA estimates, the annual average rate of growth has been 2,058 more divers a year between 2000 and 2007, with nearly zero growth recorded last year.
The near stagnation last year is odd given that airfares, for instance, were cheaper from the major source markets for Malta's diving product - the UK, Germany and Scandinavia.
Meantime, an MTA spokesman gave this convoluted explanation for last year's results: "In spite of the healthy increase in overall tourism performance to Malta, the volume of tourists visiting Malta primarily for diving remained relatively constant. The main reason for this is the segment's high concentration during the peak summer months.
"Summer 2007 featured very high accommodation occupancy rates throughout the entire three months period, thus possibly stifling the growth potential of the diving segment. Furthermore, strong rates of growth from alternative segments such winter sun, summer sun leisure and English language learning, coupled with increasing numbers of younger visitors on shorter-than-average trips, have seen the share of these segments increase to account for the greater part of the volume increases registered during 2007."
In other words, more people came to Malta last year for reasons other than diving. And the fact that this is a highly seasonal sport, with 60 per cent of divers travelling to the islands between July and September, does not help. Moreover, 85 per cent of visiting divers base themselves in Malta, and the remaining 15 per cent in Gozo.
"We need year-round work and not just seasonal," said Mark Cassar, managing director of Gozo's Moby Dives. He adds that he is obliged to "give ridiculous discounts for winter" to attract business. Other centres, meanwhile, either wind down their operations or close shop during the colder months.
The diving segment mirrors Malta's tourism industry but with one major difference. According to an MTA study published last July, "the attraction of the destination relates almost exclusively to its dive quality rather than any other factor, such as the quality of accommodation or land-based attractions".
What divers do want from a destination is clear water and good visibility, plenty to do and see underwater and lodgings that are not too far from dive sites. And Malta does meet all these criteria.
Because of Malta's geographical location, the waters that wash by the islands are naturally cleared and cleaned by currents; there are numerous geological formations plus a wide selection of wrecks at differing depths to appeal to all standards of divers. Moreover, disused boats are regularly scuttled to form artificial reefs and new dive sites.
Ostensibly then, this should be an easy market to cater for, seeing that its requirements seem to be pretty basic. The problem, as seen by many dive centres, is the insufficiency of international promotion and marketing to overcome the seasonality problem.
This is confirmed by the MTA, which recognises that "the challenges ahead include the further spreading of the segment's seasonality to ensure that it does not continue to be limited by peak season capacity constraints; the retention and expansion of the loyal repeat-visitor base and the recognition of the segment's specific requirements within the wider framework of changes in the modes of transport affecting the carriage of tourists from source markets to Malta".
Although nearly all centres have an online presence and claim that 24 per cent of their business is generated through the internet, they are still highly dependent on tour operators for their customers. However, with the growing trend in DIY holidays, dive centres fear they may lose a share of business derived from third parties, such as tour operators, and want more direct marketing and promotion.
Cue the PDSA - the Professional Diving Schools Association. It is now undertaking collective advertising in international specialist media and over the last two weekends it hosted journalists from British, French, Italian, German and Dutch diving magazines. The journalists - whose trips were paid for by the MTA - were guests of PDSA member centres and sampled what the islands have to offer above and below the sea.
The PDSA acknowledges that the MTA "helps out" but it also says the authority could do more. This was borne out by the MTA as long ago as May 2002. In a study suitably titled Diving in Malta - Diving Schools' Perception the authority feels "it is important for the MTA to invest funds to promote diving in Malta during the off-peak months. Ideally such promotion could be organised jointly with the diving schools... Results indicate that the main source markets for diving holidays are the UK, Germany and the Netherlands. It is important for the MTA to continue investing in these markets, and increase its participation in other secondary markets like France, Italy and Scandinavia where there is potential for expansion".
Six years on this recommendation remains valid but there also appears to be another market segment that could help bolster diving's stagnant 2007 figures: "When trying to analyse the diving segment it is also important to understand that besides those enthusiasts who visit a destination primarily, if not exclusively, for diving, there are many others who give the sport a try when in Malta," the MTA spokesman explains.
"While the former constitute a hard core of visitors with a high repeat-visitor profile and a longer-than-average length of stay, the latter tend to consist mostly of younger, adventurous souls who decide to do a spot of diving when here for another main reason. Our exchanges with the diving operators indicates to us that during 2007 there was a very positive impact due to the substantial increase in the number of English language students and other young tourists visiting Malta.
"So effectively, we can speak about 2007 as a year during which diving segment volumes remained constant at 2006 levels but which saw a higher rate of cross-segment activity, as the greater numbers of English language students and younger visitors give diving a try during their Malta visit."
First, some numbers. According to National Statistics Office data, there were 5,581 registered Maltese divers in 2005 - one may assume there are more now; most do not need the services of a diving centre, except, in some cases, to hire or fill oxygen tanks. There are now 44 dive centres - they do not generally like to be referred to as schools, although their umbrella organisation is called the Professional Diving Schools Association - up from five in 1970, when the industry started to take off or, in this case, plunge.
These centres cater primarily to foreigners who travel to the islands for some of the best diving in the Mediterranean. Official estimates say some 53,000 divers came to Malta last year, about the same number as in 2006, but according to a local dive centre operator the figure is probably closer to 40,000.
"Most centres are uneasy about releasing figures," he said, "because of tax reasons".
If he is right about the overall numbers then the industry has not grown quite as dramatically in the last few years as one is led to believe. Whatever the real figure, the diving segment accounts for no more than 4 per cent of inbound tourism to the islands.
According to Malta Tourism Authority (MTA) estimates for 2000, 38,588 people came to Malta to dive, up from 36,750 in 1999. Consequently, based on MTA estimates, the annual average rate of growth has been 2,058 more divers a year between 2000 and 2007, with nearly zero growth recorded last year.
The near stagnation last year is odd given that airfares, for instance, were cheaper from the major source markets for Malta's diving product - the UK, Germany and Scandinavia.
Meantime, an MTA spokesman gave this convoluted explanation for last year's results: "In spite of the healthy increase in overall tourism performance to Malta, the volume of tourists visiting Malta primarily for diving remained relatively constant. The main reason for this is the segment's high concentration during the peak summer months.
"Summer 2007 featured very high accommodation occupancy rates throughout the entire three months period, thus possibly stifling the growth potential of the diving segment. Furthermore, strong rates of growth from alternative segments such winter sun, summer sun leisure and English language learning, coupled with increasing numbers of younger visitors on shorter-than-average trips, have seen the share of these segments increase to account for the greater part of the volume increases registered during 2007."
In other words, more people came to Malta last year for reasons other than diving. And the fact that this is a highly seasonal sport, with 60 per cent of divers travelling to the islands between July and September, does not help. Moreover, 85 per cent of visiting divers base themselves in Malta, and the remaining 15 per cent in Gozo.
"We need year-round work and not just seasonal," said Mark Cassar, managing director of Gozo's Moby Dives. He adds that he is obliged to "give ridiculous discounts for winter" to attract business. Other centres, meanwhile, either wind down their operations or close shop during the colder months.
The diving segment mirrors Malta's tourism industry but with one major difference. According to an MTA study published last July, "the attraction of the destination relates almost exclusively to its dive quality rather than any other factor, such as the quality of accommodation or land-based attractions".
What divers do want from a destination is clear water and good visibility, plenty to do and see underwater and lodgings that are not too far from dive sites. And Malta does meet all these criteria.
Because of Malta's geographical location, the waters that wash by the islands are naturally cleared and cleaned by currents; there are numerous geological formations plus a wide selection of wrecks at differing depths to appeal to all standards of divers. Moreover, disused boats are regularly scuttled to form artificial reefs and new dive sites.
Ostensibly then, this should be an easy market to cater for, seeing that its requirements seem to be pretty basic. The problem, as seen by many dive centres, is the insufficiency of international promotion and marketing to overcome the seasonality problem.
This is confirmed by the MTA, which recognises that "the challenges ahead include the further spreading of the segment's seasonality to ensure that it does not continue to be limited by peak season capacity constraints; the retention and expansion of the loyal repeat-visitor base and the recognition of the segment's specific requirements within the wider framework of changes in the modes of transport affecting the carriage of tourists from source markets to Malta".
Although nearly all centres have an online presence and claim that 24 per cent of their business is generated through the internet, they are still highly dependent on tour operators for their customers. However, with the growing trend in DIY holidays, dive centres fear they may lose a share of business derived from third parties, such as tour operators, and want more direct marketing and promotion.
Cue the PDSA - the Professional Diving Schools Association. It is now undertaking collective advertising in international specialist media and over the last two weekends it hosted journalists from British, French, Italian, German and Dutch diving magazines. The journalists - whose trips were paid for by the MTA - were guests of PDSA member centres and sampled what the islands have to offer above and below the sea.
The PDSA acknowledges that the MTA "helps out" but it also says the authority could do more. This was borne out by the MTA as long ago as May 2002. In a study suitably titled Diving in Malta - Diving Schools' Perception the authority feels "it is important for the MTA to invest funds to promote diving in Malta during the off-peak months. Ideally such promotion could be organised jointly with the diving schools... Results indicate that the main source markets for diving holidays are the UK, Germany and the Netherlands. It is important for the MTA to continue investing in these markets, and increase its participation in other secondary markets like France, Italy and Scandinavia where there is potential for expansion".
Six years on this recommendation remains valid but there also appears to be another market segment that could help bolster diving's stagnant 2007 figures: "When trying to analyse the diving segment it is also important to understand that besides those enthusiasts who visit a destination primarily, if not exclusively, for diving, there are many others who give the sport a try when in Malta," the MTA spokesman explains.
"While the former constitute a hard core of visitors with a high repeat-visitor profile and a longer-than-average length of stay, the latter tend to consist mostly of younger, adventurous souls who decide to do a spot of diving when here for another main reason. Our exchanges with the diving operators indicates to us that during 2007 there was a very positive impact due to the substantial increase in the number of English language students and other young tourists visiting Malta.
"So effectively, we can speak about 2007 as a year during which diving segment volumes remained constant at 2006 levels but which saw a higher rate of cross-segment activity, as the greater numbers of English language students and younger visitors give diving a try during their Malta visit."