Today's investment, tomorrow's income

Parliament recently approved the Malta Tourism Authority's financial estimates. This is one of the two annual opportunities for Parliament to analyse and discuss the tourism industry. At a national level, however, the debate on tourism never ceases. This international economic annus horribilis is no exception. Hardly a week goes by without some news breaking out that puts tourism under the media spotlight. With airlines going bust or drastically cutting down on costs and routes, with source markets facing increased unemployment and heavy recessions, most, if not all, tourism destinations are facing difficult times. In such times, we need to be scientific in our analysis, creative in our solutions and expedient in taking remedial action. In carrying out our duties, the government and the MTA are working hand in hand with all tourism stakeholders. Through this collaboration we implemented a number of initiatives that helped minimise the impact of the international economic recession on our tourism industry.

The two major challenges we are facing at the moment is stimulating demand in our source markets and ensuring that airlines keep viewing Malta as a viable destination. The MTA is facing up to these challenges through various marketing initiatives. Marketing goes beyond promotion and includes ensuring that the product and price meet the customers' expectations.

The MTA is promoting Malta on television in the UK, France, Germany and Italy. We are using print media in all our source markets not only through commercial spots but also through advertorials and features on Malta. To this end, the MTA will this year be bringing over 800 journalists to Malta. We are also advertising heavily on the internet. The MTA has also just brought over to Malta 1,000 German travel agents, conscious of the fact that, despite the trend towards independent travel, the relationship with tour operators and travel agents remains a critical factor as they still account for nearly half our source of tourists.

The MTA is also offering assistance to hoteliers who wish to carry out their own advertising campaigns by matching their incremental spend euro for euro. Together with the Ministry of Finance, we are targeting public sector conferences to make up for the international drop in conference and incentive business.

The MTA is also supporting major events. These events, such as the upcoming Isle of MTV concert, the fireworks festival, the International Choir Festival and the P1 Powerboat race, not only enrich the experience of tourists who happen to be in Malta but are fast becoming a reason for tourists to choose Malta for their holiday.

While, admittedly, the drop in arrivals for the first five month of this year compared with 2008 does not make happy reading, it is worth noting that we have managed to maintain our arrival figures essentially at par with those of 2007 and exceeded those of 2002, 2003, 2004, 2005 and 2006. I for one wish and will continue working for more.

Some of the measures being taken by the government and the MTA will also have longer-lasting positive effects. Take for instance the interest subsidy scheme we launched recently, whereby we will be financially helping hoteliers, particularly 3-star hotels, upgrade their product. This scheme will help ensure a sustainable future for this important category of accommodation. Take the €10 million scheme for tourism enterprises. This EU co-funded scheme will help our tourism enterprises to become more competitive by investing in new projects and ideas and bettering their offer. Take the investment we are making in tourism-related projects in the main tourism localities of Pembroke, Sliema, Qawra, Mdina, Valletta, Gozo, Żurrieq and Vittoriosa. Take the fund we shall shortly be proposing aimed at investing in the underestimated charm of our villages. Take the Valletta City Gate project with the genial touch of Renzo Piano, which will finally give a dignity long desired to this unique capital city.

Our efforts are being supported by many, including the banking institutions, which earlier on this year agreed to offer a moratorium on loan repayments to hoteliers. This measure will give a number of hotels some needed breathing space.

We did not sit out this recession. Rather we, and by we I mean all the tourism stakeholders, are taking the challenges head on.

The measures outlined above carry a price tag of tens if not hundreds of millions of euros. We consider this as a viable investment. The international slowdown we are going through at the moment will, hopefully, sooner rather than later, come to an end. Today's investment will become tomorrow's income.

Dr de Marco is Parliamentary Secretary for Tourism.