Caroline Muscat
Malta pricing itself out of world tourist market
Roads, environment drag ranking down
A tourist soaking up the sun on one of Malta's beaches. Photo: Matthew Mirabelli.
Malta has dropped four places on the World Economic Forum's competitive tourism list due in particular to poor results in price competitiveness.
Malta slid from 25th to 29th place in global ranking, according to the third annual Travel and Tourism Competitiveness Index 2009, covering 133 countries around the world.
For price competitiveness, Malta ranked 122 out of 133 countries, and claimed last place in purchasing power parity (PPP), which compares the price of goods and services, more or less, to other countries.
This year's report, entitled 'Managing in a Time of Turbulence', is based on three broad categories that facilitate or drive travel and tourism competitiveness: the regulatory framework; business environment and infrastructure; and human, cultural, and natural resources. Malta ranked 11, 31, and 52 respectively.
Speaking about Malta's reduced competitiveness in the travel and tourism sector, a spokesman for the Malta Tourism Authority said: "While, admittedly, Malta has slipped from 25th place in 2008 to 29th place in 2009, last year's index was from a total of 130 countries whereas this year's index has increased to 133 countries."
The new competition came from the Ivory Coast, Ghana and Malawi that were not considered in last year's index.
In defence of Malta's ranking, the MTA said: "If one takes the top ranking countries, one realises that their tourism offer is very different to ours and different to most of our direct competitors such as Slovenia, Israel, Portugal, Greece, Cyprus, Spain and Italy ranked at the lower end of the PPP index."
One of the top ranking countries in the PPP index was Egypt in 4th place, a country that also attracts tourists seeking sun and sea.
Those countries, described as Malta's "immediate competitors", still fared better, with an average 25 point lead in PPP ranking.
While acknowledging the result, the MTA insisted the index did not include the value for money factor, though it reiterated the need for tourism operators to offer good value. On a few points Malta was listed among the global elite, while on many others it hovered in the bottom half of the list, at times even scraping the bottom.
The only category where Malta ranked among the top three is health and hygiene. In the category of natural resources, Malta's placed last.
While Malta fared well in the regulatory framework for the travel and tourism industry, it ranked poorly on transparency of government policy making, openness of bilateral air service agreements and visa requirements.
Safety and security ranked high, achieving 11th place, although the lack of reliability of police services reduced Malta's ranking in this category.
Malta did well on government expenditure and prioritisation of the travel and tourism industry, but suffered when it came to the effectiveness of marketing and branding and trade fair attendance.
Ticket taxes and airport charges were at the higher end of the market - 89th place. Malta's fuel price levels were also above average, acquiring a ranking of 106 in the index. On the overall extent and effect of taxation, Malta ranked 48.
On ground transport infrastructure, Malta's poor quality of roads reflected on the quality of the tourism product, while the public transport system took Malta to the lower rungs of the global ranking. However, Malta placed top for road safety.
Malta's ranking was poor on every level within the environmental category, from stringency of environmental regulation to enforcement to carbon dioxide emissions.
The report concludes that Switzerland, Austria and Germany have the most attractive environments for developing the travel and tourism industry. France, Canada, Spain, Sweden, the US, Australia and Singapore complete the top 10.
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Ray Woods
Mar 15th 2009, 20:45
This is a very damaging confirmation of things that we all know.
It is too easy to look for a scapegoat in the Malta Tourist Authority when there are more fundamental issues at work - a bit like re-arranging the deckchairs on the Titanic.
Malta is now a prisoner of the Eurozone. A high euro means high prices. VAT at 18% doesn't help.
Some people on Malta are getting greedy and think that tourists don't notice when they are being ripped off - try getting a taxi in Bay Street - 12 euros for a 3-4 minute drive.
Try getting a sun lounger on Mellieha beach these days.
The high cost of flights to Malta is really damaging to the tourist industry.
Litter is a huge problem on Malta.
I have seen sandy beaches left strewn with seaweed for days after storms.
For those of us who love and believe in Malta - we face an uphill struggle convincing others.
The MTA seems from my tv to be doing a much better job that in the past - but the whole Country needs to wake up if it is to survive in this very competitive world in which we live.
Juergen Herdin
Mar 15th 2009, 19:58
Value for money? I used to travel to Malta four times a year (Germanwings). And I love the country. But,... well, let me say: Your island is 30 % more expensive than for example Mallorca or mainland Spain (coastal areas). A flight to Mallorca from Stuttgart is at around 80-130 Euros (roundtrip). And Air Malta now is introducing
herself in Stuttgart (from April on) with ticketprices from 200 to 450 Euros.
steve elliott
Mar 15th 2009, 19:25
Dear Nelli Fischer, no one is making you go to Malta,we all have choices.If your taking a young family to Portugal make sure that you keep an eye on them!!!! At least Malta is safe. Vaganza Tajjba
N.Fischer
Mar 15th 2009, 14:10
This just show you greediness don't pay, too little and too much late as tourists like ourselves have looked further afield to a better value for our money, its a bit too late now to reverse the system as people got wiser to the way Malta was handling the tourist industry.Still i wish you well for this coming season but i for one will be going to another country ie., Portugal - here we come. bye
Nelli Fischer.
L..Galea
Mar 15th 2009, 12:57
Incompetence by the MTA in trying to find an excuse instead of fixing the problems.
What about the renewal of the contract with the Sheffield football club when half the board did not agree?
Why did they not carry out an analysis to see what benefit Malta had by sponsoring the club for £350,000 out of our money?
Why was it sponsored again?
Was it sponsored for the same amount or for £1,000,000 that the club was demanding?
These are the questions that you should be answering MTA, not trying to find an excuse to hide your failings.
Chris Finch
Mar 15th 2009, 11:38
It seems to me that it is the MTA itself that is failing. It cannot even recognise that Egypt is one of the biggest competitors and names Israel and Slovenia instead. Personally I have never heard of anyone going to Israel on holiday from the UK but thousands go to Egypt every year.
To have a poor showing in terms of Marketing and Trade fair attendance is a clear sign that the Marketing team should be sacked and better people employed before we have another dismal tourist season although I fear it is already too late for this year.
B Ferrante
Mar 15th 2009, 10:29
[quote]In defence of Malta's ranking, the MTA said: "If one takes the top ranking countries, one realises that their tourism offer is very different to ours and different to most of our direct competitors such as Slovenia, Israel, Portugal, Greece, Cyprus, Spain and Italy ranked at the lower end of the PPP index." [unquote]
So insted of trying to improve ourselves, we try to excuse ourselves. Shame on MTA