Conference and incentive travel has recovered considerably, with 86,000 visitors last year, compared with just 77,000 the year before. This is even better than the 84,000 arrivals in 2012, and particularly good news for the tourism sector as they are estimated to generate at least three times as the average tourist.

Although it is just 7.7 per cent of inbound business travel, the MICE sector also helps to mitigate the seasonality issue, since this business is concentrated during the shoulder months.

Michael Cutajar, the PR and communications executive at the Malta Tourism Authority, is upbeat about the future of this sector: “Compared to leisure travel, the MICE business is more sensitive as it is very much dependent on good economic and business performance. Although it has not yet returned to pre-recession levels of activity, it has navigated the economic downturn successfully and confidence levels have been rising.

Corporate events largely depend on the performance of key sectors such as information and communications technology, automotive, pharmaceutical and construction. As confidence is growing once again in all of these sectors, incentive travel is picking up again after a break during the recession.

What has Malta got to offer? The climate is an obvious factor, as are the value for price and flight connections. There is also a variety of events happening all year round. But Malta is competing against other Mediterranean destinations and cities, meaning that it needs to focus on excellent service.

Mark Gatt, managing director of EC Meetings, agrees, saying the sector requires passion.

The MICE sector also helps to mitigate the seasonality issue, since this business is concentrated during the shoulder months

“This is an industry that demands extremely high standards, long hours and painstaking attention to detail. We deal with demanding, well-travelled clients, and the end result always has to be top notch. ‘Good’ is simply not good enough.

“Service standards on the island have improved considerably in recent years, but we are still very far from where we need to be. The same can be said of our physical infrastructure, the built environment and the state of our countryside. There needs to be a concerted, national effort to improve standards across the board – and that is a challenge not just for our industry, but for the country as a whole,” he said.

Glass trophies and corporate gifts by Mdina Glass.Glass trophies and corporate gifts by Mdina Glass.

At one time, the industry used to talk about hosting MICE events for thousands of delegates, which never materialised, with one or two notable exceptions. Mr Gatt of EC Meetings does not see events of over 2,000 persons becoming more frequent, for two main reasons: availability of suitable venues and hotels, and accessibility: “Currently we only have one indoor venue that can accommodate over 2,000 persons for a conference or dinner event, which can be off-putting for prospective clients. Of course we have some beautiful outdoor venues that can take 2,000 people plus, however, we are then faced with an accessibility challenge.

“Bringing in a large number of people on scheduled flights in the summer months is a daunting task, and the costs of chartering multiple aircrafts may also be off-putting,” he said.

For events of around 1,000 guests, however, Malta has a lot to offer. The area of St Julian’s, particularly, is an ideal location for this size of group.

“The fact that the hotels are within walking distance of each other is looked upon very favourably by clients since it cuts down transfer times and slashes costs. To really capitalise on these advantages we need to embellish and upgrade the surrounding area, maintain or grow the existing bedroom stock, and develop a conference centre close by that would cater for both meeting and dining spaces. I hope government gives serious consideration to the White Rocks area, which has the capacity to complete what is an already very attractive package,” Mr Gatt concluded.

For MICE unique venues, especially historical ones, turn a regular event into something memorable, Edward Bonett, the director of sales at Infinitely Xara, stressed.

“MICE clients look at venues that offer something different from what a hotel would normally offer. There are a number of venues spread across all areas of Malta. These vary from 16th century venues up to modern villas and venues that can cater for large events and meetings.

“Most of the time, events within hotels are not allowed to have music till late and due to branding, they might not always have the flexibility that an independent venue is able offer, both in terms or prices and service,” he said.

Charmaine Camilleri, the sales & marketing manager of Seasons Events Caterers also felt that the government should stop leasing historic sites out to the private sector – and make the available ones adequate to accommodate guests.

This sentiment was echoed by Chiara Hensel Ellul, director of sales at Le Méridien St Julians Hotel & Spa.

“Many meeting planners are impressed with Malta’s cultural heritage and diversity, especially when considering our size, which makes it easy to get around. We are lucky to have a number of sites available to use for such events, although I think our government needs to consider restoring some sites and having a better system in place for MICE groups,” she said.

It is not only external venues that need to be available, but also facilities within hotels. Both Ms Camilleri and Ms Hensel Ellul stressed that technology plays an important role as meetings and events get more tech-savvy with clients wanting the latest audio visual equipment.

Banqueting at Infinitely Xara.Banqueting at Infinitely Xara.

But it is not only about the conference or meeting itself. Ivan Borg Ferrando, the general manager of db Catering & Events, said that hotels had to offer a range of facilities for the guests.

The tourism authority should promote venues which do not form part of hotels

“Free Wi-Fi today is a necessity for all delegates as it is their connection to the office and family life. And many delegates have fitness routines that they would not want to disrupt, so a fitness centre and spa are very important. And because their programmes often include some free time, it is good for the venue to offer entertainment activities in the hotel or nearby, such as a casino, cinemas and shopping areas.

“Resorts would also need to provide free transport to the main centres or towns,” he said.

Christopher Gingell Littlejohn, the director of sales and marketing at InterContinental Malta, believes that delegates also want to leave with a flavour of Malta – in more ways than one.

“The provision of opportunities for participants to discover and learn about the Maltese islands, in the limited time they have available, is what differentiates one conference destination and the services it offers, from another.

“Offering MICE customers truly individual experiences can present itself in a number of ways, including; the type of cuisine available during functions, activities outside of the conference venue (and the ability for individual participation), or to bring a local experience to delegates during their participation in the event,” he said.

The aspect of accessibility was also highlighted by Paul Selis, the director of On Site Malta, who said that flight connectivity was a big factor in MICE.

“Although Malta nowadays is connected very well to a large part of Europe by direct flights, many of these are offered by low-cost carriers, which are not really the preferred type of airlines for MICE due to limitations in booking facilities. In addition legacy airlines’ fares to Malta are relatively high.

“These factors combined with a much easier supply of information via the web result in even long-haul destinations vying successfully for the same business we’re after,” he said.

Mr Bonett of Infinitely Xaraagrees that Malta needs to remain competitive from a price aspect too. He argued that the government should reduce Vat on all tourist services from 18 per cent to 7 per cent – the same as for accommodation.

“This will enable all service providers (except hoteliers) to lower their prices and be more competitive when it comes to other destinations,” he said.

It is not only the fiscal advantages that are limited to hotels. Mr Bonnett believes that marketing support should also extend to other stakeholders.

“The tourism authority should promote venues which do not form part of hotels. Most of the time, promotional material is focused solely on the destination as a resort and/or ideal meeting venue. But why not try to generate additional revenue for transport companies, guides and reps, and historical sites as well as the venue itself?”

There are clearly many reasons that conferences generate so much more money than normal tourists, ranging from lavish dinners, innovative team building ideas, top level transportation and boat and jeep excursions. They also spend considerable amounts on exhibition stands and collateral, and even corporate gifts.

Pamela Said, the retail manager at Mdina Glass, explains that these often have a ‘Malta’ angle.

“The Maltese cross is a popular and iconic symbol, but a lot of clients go for something a bit more tailored and unique. Luckily, because we produce all corporate gifts and trophies ourselves, we can cater for pretty much any requirement, from reproducing scenes of local landmarks to emblems relating to the Maltese islands and more. Engraving is also taken care of in-house and that gives us a large degree of flexibility when it comes to that local touch.

“We can also produce something inspired by the particular brand, company or event itself,” she said.

Mr Cutajar of the MTA had one last point to make about the sector: its indirect benefits.

“Over the years, Malta drew a number of large-scale, high-profile conferences, involving various international blue chip companies and political world leaders to the island,” he said.

“You cannot underestimate the importance of this exposure in the long term.”

The Malta Tourism Authority works closely with the industry to develop new initiatives, projects and products.

In order to assist the trade to tap lucrative business from new markets (US & Canada, Japan, China, Gulf and the Middle East, South Africa, Turkey and South America), two specific schemes were launched by the authority’s MICE segment unit.

The MTA’s licensed trade partners, such as conference hotels and destination management companies (DMC), were given assistance with familiarisation trips from the above markets. An additional scheme was dedicated to DMCs with the MTA’s Quality Assured seal, for sales initiatives in the above markets, over and above the standard scheme.

The MTA also renewed the MTA Association scheme – an incentive scheme for international and European associations which do not have a local representative in Malta, in order to attract business in the shoulder months.

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