Christian Peregin
Hotels feel chill of slow winter
TV ad campaigns planned for major European markets
The four-star Suncrest Hotel will be shutting down in winter as the slow months are expected to be somewhat slower than usual. A few smaller hotels are also doing so but others will be trying to ride out the downturn in anticipation of better times ahead. Photo: Darrin Zammit Lupi.
Six hotels have shut down for the winter months as rising costs and fewer tourists have made it unsustainable for them to remain open.
Although some hotels have made it their policy to close down for refurbishment during these shoulder months, the situation is worse than usual, due to the economic downturn and the rise in costs.
The Suncrest Hotel, one of Malta's largest in terms of accommodation, has closed its doors from December 1 till March 7, but has kept its employees on the payroll.
Anġlu Xuereb, the owner of the four-star hotel, told The Times that even during the Christmas period it would have been unfeasible to remain operational. Two years ago the hotel had closed for refurbishment but had waited until January before doing so to cash in on staff parties and festive lunches.
The employees of Suncrest will be using up accumulated vacation leave and the overtime they clocked during summer, according to Mr Xuereb. Like other hotels, it will take advantage of the slow period to undergo maintenance and refurbishment.
According to the Malta Hotels and Restaurants Association the other hotels closing down in the winter include the Primera Hotel, Palm Court, Sunflower Hotel, Karanne Hotel and Palazzin. Most of these are smaller hotels located around Buġibba and Qawra, areas which are always badly hit during the shoulder months.
On the other hand, other hotel owners who spoke to The Times confirmed they would not be closing down despite the bleak outlook. Many are holding their breath and hoping next summer will make up for the difficult winter.
"The country has never been through this kind of world recession and adopting a business-as-usual attitude, as if nothing is happening, is not an option. That is why the MHRA strongly objected to recent utility tariff increases, as this hits the operators and reduces the spending power of the Maltese," MHRA chief executive George Schembri said, adding that this year's slow months will be far slower than witnessed in recent years.
"Some hotels had planned their closure earlier in the year, giving employees time to find alternative work. Others kept them working on their refurbishment programmes, while other employees are taking residual leave from this year and the next. Hoteliers are not happy with the situation but it is the only direction available to them at the moment," he said.
"Government after government in the last 40 years has tried to address the off-peak months but to date we have not succeeded in finding the right formula to ensure adequate demand for the sector during winter."
Mr Schembri called for more innovative facilities and a cleaner environment to make the islands more welcoming during this period.
"We cannot afford to do nothing about our product as our competitors are moving way ahead of us," he added.
He said that although revenue was going to continue dwindling, this was the time to push ahead with huge investment in the country's product so that when the situation improved the country could compete with a better product.
Asked about the situation, a spokesman for the Parliamentary Secretariat for Tourism told The Times that it is customary for hotels to plan refurbishment and extension projects in the winter months so as not to affect the peak months.
"This is imperative if we are to keep our tourism product up to date and top-notch," he said.
In order to combat the effect of the global financial crisis on tourism, the Malta Tourism Authority will be increasing its promotion across all markets and will be running television campaigns not only in the UK but for the first time also in Italy, France and Germany.
"We are also actively targeting particular demographic groups that are the least negatively affected by the current economic slowdown."
The MTA will also try to target emerging markets, such as Dubai and Russia, in order to diversify the marketing efforts, while trying to increase accessibility to Malta through constant discussion with various airlines.
The spokesman added that the injection of €120 million from EU funds will further help to improve "product Malta".
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caroline crutchley
Dec 18th 2008, 18:22
I went to a christmas function at the Qawra palace hotel and the whole Qawra area was like a ghost town !!!
Guess all the tourists have gone to Tunisia .. outside the euro zone
Joe Galea
Dec 18th 2008, 07:51
Malta has become a very expensive destination compared to competing countries. With the expertly introduced new tariffs of water, electricity, sewage and higher fuel prices, Malta's cost of living is high and will continue to shoot up.
If this government doesn't change direction it will lead many industries into the wall.
a.camilleri
Dec 17th 2008, 08:39
lets just say overpriced, thats the problem with malta, my 3 sons who live in the uk can go to other resorts for half the price, they do have to work for their money so they pick the cheapest holidays.
Mick Scott
Dec 16th 2008, 19:37
Mr Morris and Mr Bagnall make good points,i have visited Malta at least once a year for nearly 30 years .At the beginning of November i and two other family members went to the south of France for a week our first choice would have been Malta but for more than 50 per cent less airfare we did not come.Together with a definate lack of manners by some bus and taxi drivers this puts people off from returning.This has happened to people i have done the bookings for and they have vowed not to return ,much to my dismay ,as we love the island and its people. Unless there is a concerted effort to improve a lot of things ,there will be a serious decline in uk visitors.Nothing could deter me and the family but new visitors will think twice about re visiting,especially with the high air fares compared to other European destinations.
Ian Glazier
Dec 16th 2008, 19:10
What do you expect if AM stop direct flights from Scotland and the North East of England.
As everyone knows these flights were always full.
The recession is there and the pound is reducing in value however if you do not supply the means of getting there what chance do you have.
The only saviour would be Ryanair.The MTA must have dialogue with them to increase the supply of flights to the Island as AM do not seem interested.
Tony Morris
Dec 16th 2008, 18:26
It would help matters if the airfares were not so high,people can fly from the UK to prettier destinations for half the price.Wake up before it's too late!!
Charles Micallef
Dec 16th 2008, 18:12
Cont.
When we put our noses up at the Three Star sector we started the demise not just of Bugibba and Qawra resorts but of the industry as a whole. Some thought that we could do better with concentrating on the 4/5 star markets, and ignoring the bread & butter hotels which kept whole resorts in business. We now have a Golden mile full of five star hotels who year after year are struggling to make ends meet and have to rely on the taxpayer's subsidies for their energy bills.
The result of years of abuse and expensive amateur advertising campaigns is there to be seen by all. If only we invested that money in improving the product, we would have a stronger base to attract the sort of tourists that like Malta for what it is and not the imaginary five star resort that some dreamt off!
Thank god we now have a world recession to blame!
Charles Micallef
Dec 16th 2008, 18:02
The demise of the Tourism Industry in Malta started in Bugibba / Qawra with years of general neglect in these once lucrative resorts. Instead of investing our hard earned taxes in upgrading programmes, we invested in expensive consultancy fees, the fruit and results of which is now there to be seen by all.
cont....
Douglas Bagnall
Dec 16th 2008, 16:20
Sorry, but it is not just the poor state of the pound that is keeping us Brits away , most of us who loved to holiday with you can still afford to.It is also the downturn in the attitude towards us that makes people turn to other countries like Majorca, who appreciate our custom, and show it.
My friends and ourselves could give you lots of reasons but mostly it is the terrible way bus drivers treat us, one even scattered our change on the floor when had to demand it from him.
Students arriving in masses earlier each year, overtaking the budget hotels and fouling the once beautiful Sliema.
The last time we had a complaint at our hotel we where told to take it or leave it.
Well we left it, the same as we shall again this winter by going elsewhere.
Hope it gets better for you, it is always the few who can let the side down, but now we must move on, after many previous lovely years with you, we thank you.
Brian Maloret
Dec 16th 2008, 15:20
Unfortunately, the drop in the number of British tourists visiting Malta during the winter months is not about what Malta can offer them but rather to do with the perilious state of the British economy and the plummeting rate of exchange of the pound sterling against the euro. Whilst I don't want to add to the doom and gloom, if the exchange does not improve substantially before next summer then British tourists will not be visiting Malta or any other EU holiday destination for that matter.
Joe Grima
Dec 16th 2008, 13:44
George Schembri , CEO of MHRA, who has finger on Malta's tourism pulse is absolutley right. If there was ever a time when Malta needed tfly its Promotion and PR in teh face of UK holidaymakers and of competting destinations, that time is definitely now. But is MTA listeneing are are we still dealing with office politics? Malta hss amply shown that it possesses the tools to do a good and effective promotion job and the results have been in for a long time. It is up to the Malta Tourism Aithiority to put these tools in place and at work.
Phil Press
Dec 16th 2008, 13:36
@ Nevil. Don't hold you breath, the best is yet to come.
If these hotels need to close in the winter, because it is "unsubstaiable" because or higher costs. Wait till the summer when the new tariffs are up and running.
I always thought that most people came to Malta in the winter months, for long stays, because of the weather elsewhere. So now where to ?. Will they return ?.
NEVIL DEBATTISTA
Dec 16th 2008, 11:51
Neville Debattista a member of the so called ' Doom and Gloom club' ( contrary to what Mr. Saliba may beleive I always look on the bright side of life but then I am not that blind as not to
call a spade a spade) is asking Mr. John Saliba whom I respect a lot if this chill feeling is just
a fragment of my imagination or else a clear indication that all is not well on the Western Front.