Tour operators will go out of business unless they adapt to the changing business environment, Tourism Minister Edward Zammit Lewis warned yesterday.
“The digital challenges facing tour operators are a present issue. It is with great responsibility I say that those that do not adapt will go out of business,” he said.
Dr Zammit Lewis said he had met with both inbound and outbound tour operators during this month’s Amitex travel fair and explained the importance of embracing the digital advancements in the industry.
“I told tour operators that more and more people are booking trips online and those that do not offer this will struggle. They are obviously aware of this issue themselves,” he said.
Dr Zammit Lewis stressed that tour operators were still relevant in today’s travel market, pointing out that in the case of Germany, Malta’s third ranking source of tourists, 80 per cent of visitors were handled by tour operators.
More people are booking trips online and those that do not offer this will struggle
He was speaking after launching a new national tourism policy, which sets a “15-year vision” for the industry.
Embracing digital advancements, such as online booking platforms, is one of the many points raised in the 70-page policy document, which lists the main changes that need to take place to achieve year-long growth in the industry.
Dr Zammit Lewis said the document also aimed to increase the industry’s added value by rebranding the island away from its traditional “sun and sea” reputation. Asked whether others involved in the industry were also at risk if they ignored digital advancements, he said this was not an issue because the policy was based on points raised by all industry players during a lengthy consultation process.
“This is the industry’s document. This isn’t the government saying what needs to be done. On the contrary, this is the main players and even smaller businesses putting forward their ideas on what steps need to be taken,” he said.
Main policy proposals
The government wants to encourage off-peak-season growth by targeting markets such as Russia and Scandinavia.
It wants to tap new markets by opening new air and sea routes and to combine efforts between the MTA and Air Malta to market the airline’s existing routes.
Yachting facilities will be expanded beyond domestic needs, and increased volumes of yachting tourism will be attracted.
A wide-ranging rebranding strategy for the island will be developed. A major part of this will be the move towards city-tourism, through attracting visitors to areas such as Valletta.
Product-related issues, such as language barriers, payment systems, restaurant menus, visa processing and others, should be addressed to facilitate the tourist experience. Strategic alliances with other Mediterranean destinations should be developed to engage in joint marketing initiatives and other combined efforts.
The growth potential of various emerging sectors will be researched to tap underutilised areas.
Disturbances caused by construction and maintenance works during the peak season should be minimised and a comprehensive tourism strategy should be developed for the south of the island.
Environmentally and aesthetically sensitive and reversible ways to facilitate access and use of the rocky coastline will be introduced. These include providing decks or similar facilities for sunbathing and other provisions such as bins, swimming zones, security and lifesaving equipment.
Tourism facts
• Just under a third of Malta’s GDP depends directly on the 1.7 million tourists visiting every year.
• A total of 10,491 people are directly employed in hotels and catering establishments.
• Five per cent: the average annual increase in tourist arrivals.
• Research carried out by the Malta Tourism Authority shows that Malta is attracting younger tourists, who book their trips closer to the date of travel. Their visits are shorter and they are more likely to book online.
• Two-thirds of last year’s tourists visited Malta for the first time.
• Malta is directly connected to 92 airports, providing links with 84 cities across Europe.
• The UK remains Malta’s main source of tourism, accounting for nearly a third of last year’s arrivals; 15.5 per cent come from Italy, 8.5 per cent from Germany and 7.4 per cent from France.
• Some 60 per cent of tourists visiting Malta stay for a week or longer. However, shorter trips are on the increase. Last year, one-to-three-night trips increased by 13 per cent.
• Cruise passengers who visited last year totalled 471,554, three-quarters of whom came from the EU.