As Malta keeps attracting a higher number of tourists, the country needs to seriously reflect on the possible implications of this rapid growth in tourism.
What has to be considered is not just the number of tourists the island can take without jeopardising the product, but, also, the disequilibrium it could create if it is allowed to expand to an extent that the economy becomes overdependent on it.
Tourism is of great benefit to the country as it not only generates direct revenue but also creates jobs. According to the latest World Travel and Tourism Council report, for example, travel and tourism contributed 14.7 per cent to the gross domestic product last year, placing Malta 13th worldwide when measuring the importance of the sector to the economy.
It is also forecasting a four per cent rise in the sector’s contribution to GDP this year. The revenue flowing in from tourism, added to that earned by other profitable sectors, such as financial services and gaming, keeps oiling the economy, which – at a rate of 5.2 per cent – is growing far more rapidly than most of Europe.
Like other tourist resorts in the Mediterranean, Malta faces growing competition from emerging destinations. But, apart from this, there is also another challenge: the harm that the fear or threat of terrorism can do to the industry. Tunisia, a neighbouring country, suffered badly following a terrorist attack at one of the country’s prime tourist sites in March this year.
With Malta being so close to a number of political hotspots, vigilance to ensure security remains a priority. However, as it has been doing since the start of industrialisation, Malta has to keep thinking long-term as well by creating new lines of economic activity in order to have a balanced economy. The previous administration had successfully steered the economy towards greater diversification when it promoted the development of the financial services sector and aircraft maintenance, to mention just two lines.
The new administration is thinking on the same lines and is promoting the development of the education and medical sectors. These, too, can help bring about a healthier economic mix. It is a great pity that, in promoting new sectors, the government is stumbling over issues that should not arise at all had it been careful enough to be transparent in its actions.
This is a flaw in the government’s operations that has to be corrected without further loss of time as it could derail or obstruct progress in the development of the new sectors, besides wasting much time and energy on unnecessary controversies. Such time and energy can very well be utilised on other efforts.
Naturally, tourism ought to continue to be given the attention it deserves because it remains one of the island’s main economic motors.
Despite the progress made, it does need attention. The higher the number of tourists, the greater the threat to the quality of the environment.
Mass tourism degrades the environment and, in such a tiny island as Malta, the danger of environmental degradation is even greater. It also places a heavier demand on the infrastructure, which will get worse with the building of new blocks of flats in so many places on the island unless it is continuously expanded or strengthened.
Standards may also suffer as tourism operators cut corners to cope with the inflow. What we need to be aiming for is a rise in quality – across the board.