There is no strategic planning

When the international economic recession that followed the financial crisis and the new utility tariffs (introduced in October 2008) started to negatively impact the Maltese economy, the General Workers’ Union published its 2009 Budget proposals to stimulate growth.

… it seems that Vision 2015 is now in limbo…- Victor Carachi

One of the more important proposals that made the headlines was for the government to formulate a strategic five-year plan for all sectors of the economy including health, education and the environment. The union recommended that the annual Budget would serve as a tool to allocate resources for the achievement and implementation of the strategic plan. Strategic planning entails continuous fine-tuning so that the plan is adapted to the ever-changing environment and not for it to become a straitjacket.

This is normal practice in business, especially in turbulent times, when having a road map is indispensable to avoid pitfalls. Unfortunately, at the time, the government seemed to discard this proposal and an unnamed government official even went so far as to criticise it as a remnant of the central planning era characteristic of communist regimes.

Nothing could be further from the truth, as such a proposal emanates from modern management practices. Be that as it may, it seems that the government had second thoughts and, some months later, unveiled an outline of a strategic plan called Vision 2015.

Unfortunately, it seems that Vision 2015 is now in limbo as only a passing reference was made to it in the last Budget.

On tourism, one of the most important sectors of our economy, Vision 2015 had this to stay:

By 2015, the tourism industry will be facing fresh challenges, competing with new destinations and product offerings and dealing with new operators and customer trends. The government will continue working with stakeholders to make Malta a unique Mediterranean destination. The national tourism plan will be updated to anticipate these shifts and changes. There will be tax incentives for families who host foreign students. There will be strong investment in tourism areas and in the restoration and upkeep of heritage sites. The Grand Harbour and Marsamxett harbour projects will be implemented. Dock No. 1 in Vittoriosa will be regenerated as a recreational area with a promenade that links it to Fort St Angelo and right through to Pietà and Sliema.

It is indeed a pity that the national tourism plan has been omitted in this Budget. It seems that the government believes that some marketing here and there is enough to sustain and grow this very important sector of our economy.

Had such a plan been prepared and coordinated with all the stakeholders involved, Air Malta would have definitely changed its business model in time and become more competitive, thus avoiding the predicament that it has now found itself in. Instead, it seems we have Air Malta going one way and the Malta Tourism Authority going another. Why these two entities are not under the same ministry boggles the mind!

It is indeed unfortunate now that Air Malta has to downsize its operations and its workforce and operate on a smaller scale instead of growing like other airlines that came well after it! The workers and their families have to bear the brunt of past management and political mistakes and no one is being held accountable for this gross incompetence.

Unfortunately, the management by crisis syndrome is the order of the day and most sectors of our economy seem to be drifting on their own steam without a coordinated strategic plan (road map) set by the government.

In the absence of such a strategic plan, the annual budgets seem more and more disjointed from one another and, Budget after Budget, many proposals are either not implemented at all or partially initiated with no end in sight. Just like Vision 2015!

The author is president of the General Workers’ Union.