A new strategy involving all stakeholders has to be devised to address major changes in tourism patterns, Malta Hotels and Restaurants Association president George Micallef told The Times Business.
“The entire tourism industry is undergoing a process of restructuring because of the major changes we are experiencing, and this calls for a revised plan of action om a national scale,” Mr Micallef explained.
“A new strategy has to be devised, involving all stakeholders, to ensure that all players are on board. Tourism is an industry which is here to stay, but it requires a plan of action that steers it in the right direction, so we can all maximise on the huge benefits this industry has to offer.”
Late last month, the MHRA’s annual general meeting and conference heard from Jörn Gieschen, director destination strategy and marketing of THR International, one of the world’s leading tourism consultants.
Mr Gieschen, who took up his post at THR from global tourist group TUI AG where he was senior manager corporate strategy, gave a wide-ranging presentation on quality of destination experience, innovation, and the latest trends in tourism marketing. He demonstrated how mature destinations may need to have their business model completely re-engineered.
Speaking to The Times Business in the wake of Mr Gieschen’s presentation, Mr Micallef said hoteliers were very open to innovative strategies to attract niche tourism, essential to win the numbers, diversify source markets, and address the seasonality issue.
However, while Malta has been successful in winning business from niche markets over the past few years, Mr Micallef pointed out the key to attracting specific tourist groups depended more on the product characteristics, quality and packaging rather than purely on accommodation.
Asked about hoteliers’ use of new media to market Malta, Mr Micallef said a number of hotels had invested heavily to this end, both in terms of capital and in human resources. Internet-based marketing and promotion had also seen heavy funding. Local tourism operators were very actively participating in social media and the authorities were channelling significant funds towards e-commerce and internet-based marketing. Meanwhile, grants and incentive schemes had helped the industry maximise on opportunities.
The president however warned against complacency.
“We need to keep up with the pace of development,” he said. “Competition out there is growing. It would be foolish for the hotels and restaurants industry not to take heed of the affects and benefits that this can bring to the industry, given the huge exponential growth of the social media and the massive presence of travellers’ blogs and rating sites such as Trip Advisor and others.”
Mr Micallef had told the MHRA’s AGM that the recession had taught the industry people did not necessarily travel less, they travelled differently. Was Malta catering to their needs?
Even in a recessionary period, holidaying was still a must – travellers just looked at ways to buy down their holiday, Mr Micallef replied. There were moves away from traditional package holidays as people opted for ‘DIY’ breaks by first searching for cheaper airline connections, shorter stays, and low cost accommodation. Hotel bookings were more likely to be on ‘bed and breakfast’ basis or even ‘bed only’ and with fewer food options. Travellers were keen to be more flexible and less committed to spend.
“Malta has benefitted from this particularly through the introduction of low cost and new routes which has facilitated short-break travelling as a more efficient and relatively cheaper option,” Mr Micallef explained.
“Although hotel revenue has been affected because bookings are more accommodation-based, and consequently the spend on food and beverage in hotels has declined, this however offers better opportunities to restaurants and other operators in the industry.”