In his first speech as the opposition’s spokesman for tourism, Gavin Gulia said Malta must be wary of putting too much reliance on low-cost carriers because these could re-dimension their local role and inflict a very negative impact on tourism.
He said he sometimes got the impression that the Malta Tourism Authority was working on tactics rather than on strategy, more short-term and quarterly than long-term. All talk of Gozo being sold as a distinct, separate destination had come to nothing.
Speaking during the motion to approve the MTA’s budget for the year, Dr Gulia belied Finance Minister Tonio Fenech’s assertion that Budget 2011 was allocating a record sum of €35 million for tourism, because this was actually €205,420 less than the allocation for 2010.
He felt it was not right for the MTA’s estimates to be discussed and approved at a time when the authority did not have a chairman on the eve of summer and when contracts needed to be negotiated for the winter.
He asked what the half-a-million-euro increase budgeted for this year would be covering. If it meant more jobs, this was going against the government’s own directive not to burden the authority with more personnel.
With marketing expenditure earmarking €16.5 million for overseas campaigns, €12.5 million for airline support and €760,000 for local marketing and support, where was the Tour Operators’ Support Scheme? Was it covered in any of those three headings?
Dr Gulia said there should be better categorisation and more transparency. What plans were there to revamp the MTA’s website?
Why were a quarter of a million euros still being earmarked for Media Consulta fees after its contract had been dropped in 2010?
Operative expenditure on product development was being increased by €300,000, but were these for MTA projects or for other ministries’ infrastructural works? Or were they to cover for any cost overruns?
The increase in tourism arrivals in 2010 was in comparison with the very bad year of 2009, when Malta had been coming out of recession. But subsequent increases must have been the result of the authority’s efforts, in view of the strong competition from the Mediterranean basin.
Dr Gulia said another reason for increasing arrivals had been Ryanair’s opening of new routes from Italy, which was now second only to the UK in market source. The effect of Ryanair in 2010, when it had set up its Malta base only in May, could not be compared like with like until the second quarter of 2011.
It was true that total bed-nights and spending in the first quarter of 2010 had increased, but the NSO had it that per capita spending had dropped by six per cent.
It was a pity that the government was dragging its feet on reactivating the lucrative Permanent Residents Scheme and nothing was being done to profit from the fact that France had decided on a 30 per cent tax on second properties even if vacant. The government was effectively competing against itself.
Dr Gulia said Dr de Marco’s remit should go far beyond just arrival numbers. Hotels and restaurants were unceasingly pointing to government-induced costs and utility bills as responsible for less profits.
While tourism to Malta had benefited from various measures, Gozo was still in recession. The government seemed to be more intent on increasing arrivals to Malta. One other reason was that low-cost carriers’ passengers came for shorter stays and did not have the time for Gozo.
At a time when Air Malta was being restructured, any measures taken must be such as to face a possible situation of low-cost carriers redimensioning their operations.
Concluding, Dr Gulia said there was no tourism plan yet for 2012-17. Malta had come out of international recession but was still navigating perilous waters.
Labour MP Silvio Parnis also spoke.