As we start 2013, marking the end of this legislature’s five- year cycle, it is pertinent to examine how certain industries in our economy have fared. Taking the tourism industry within this context, one will be benchmarking it against 2007, which was a record year for tourism. That year Malta welcomed a then all-time high of 1,243,000 tourists to its shores, for a total of 11 million nights, with tourism expenditure reaching the €1 billion mark.
Tourism expenditure in 2012 exceeded €1.3 billion, an increase of €272 million over 2007- Mario de Marco
Since 2007, we have had to face an international financial and economic meltdown that threw the core of our source markets into recession, SARS, volcanic eruptions and armed conflict in north Africa. Such adverse conditions have shown that this industry is not for the faint hearted.
Results over the past five years have shown, however, that this industry adapts quickly to change and sees challenges as opportunities. Indeed, 2008 figures exceeded 2007 record figures. 2010 exceeded 2008’s. 2011 bettered 2010’s.
Data in hand for 2012 confirms that it was the fourth record year for our tourism industry in this legislature. Tourist arrivals exceeded 1,440,000, which means 200,000 more tourists than we welcomed in 2007. They spent nearly 12.5 million nights here, meaning 1.5 million nights more than in 2007.
More significantly, tourism expenditure in 2012 exceeded €1.3 billion, an increase of € 272 million over 2007. A substantial part of this expenditure runs through our economy, generating work and income for thousands of Maltese investors, workers and families.
Five record performances in six years is an achievement for the industry. All those who contributed to this success should be justifiably proud. Together we have taken our tourism industry to new heights, delivering more jobs and better income.
Tourism success is no fluke. It is the result of sound policies and relentless all-round effort. Through thick and thin, we left no stone unturned to ensure that Malta is linked to all the main cities and regions in Europe.
In 2007 we had 57 routes directly linking Malta to destinations in Europe and beyond. By 2012 the number of direct routes rose to 81. More routes, more seats translate into a better accessibility, which in turns means Malta becomes more attractive as a tourist destination.
That is why we have pursued airlines with such vigour, airlines such as Ryan Air, Easy Jet, Air Berlin, Air France, Baltic Air and others, convincing them that Malta is a viable partner to do business with.
At the same time the Government has had to ensure the survival of Air Malta. Turning it around to a profitable airline is not an option but a necessity.
Ensuring connectivity is, however, only winning half the battle. The other half is making sure that airline seats are not left empty. Thanks to the Malta Tourism Authority’s marketing efforts and that of the airlines, the number of empty seats on most airlines, including on our national carrier, continue to decrease.
Over the past five years we have made our tourism industry stronger by diversifying into new source markets and growing existing ones. We have seen the Italian market increase by an impressive 76 per cent, the Israeli market by an astounding 2,330 per cent and the Spanish market by 64 per cent. Notable increases were also registered from France and Scandinavia.
We are investing heavily to ensure that our guests enjoy a positive experience in return for their money spent in Malta.
Millions are being spent in upgrading our built heritage, in embellishing public spaces, in creating new visitor attractions and improving our country’s infrastructure. This investment is what will give us repeat visits.
I am pleased to note an ever increased appetite from the private sector to invest in the tourism industry. The MTA has over the past few years received some 30 applications by existing hotels to extend, and some 70 applications for new hotels, the bulk of which are of the boutique concept, giving new life to abandoned palazzos.
This investment is being fuelled by the positive performance of this industry. Our hotels in 2011 and 2012 enjoyed the second highest occupancy levels among the EU countries.
Hotel performance is improving year on year as was recently confirmed by the Malta Hotels and Restaurants Association’s report for the Third Quarter of 2012. The MHRA Deloitte Q3 report shows gross operating profit per available room has increased year to date by 8.1 per cent, 19.2 per cent and 14.6 per cent in the 5, 4 and 3-Star categories respectively in comparison with 2011. More importantly, their gross operating profit per available room is the highest registered in the past five years in all three categories. Ensuring a viable operation is key to long-term sustainability.
In 2012 the Ministry for Tourism published the tourism policy, the document that will guide our actions and investment in the tourism sector for the next five years. This policy, if implemented, will continue to deliver sustainable growth and strengthen further this all-important economic activity.
Working in this industry has been a privilege for me. I augur that 2013 will be a successful year for the benefit of all those who carve a living from this truly ‘people to people’ industry.
Mario de Marco is Minister for Tourism, Culture and the Environment.