The tourism industry is facing one of the most difficult challenges it has had to deal with in the past several decades. The economic scenario in which this vital industry is operating at present is indeed bleak. A reflection of these realties was the rather poor business that was generated in this sector during the past festive season.
Our traditionally most important market, that of the UK, is not only facing a significant recession but is experiencing one of the worst depreciations of the sterling every recorded. The value of the pound fell by 24 per cent against the euro in the last year and this makes it very unattractive for British tourists to travel to any country whose currency is the euro.
But the tourism industry is used to facing difficult challenges. There is no reason to be fatalistic about the likely consequences of the prevailing world economic crisis on this important industry. The secret is to be pragmatic and rely on our ability to help ourselves rather than expect others to help us.
A survival strategy for the industry has to be based on the critical success factors that can bring a turnaround in the fortunes of our tourism sector, at least in the short term. Value-for-money is the name of the game. Hotels, restaurants and other tourism-related service providers need to understand that empty rooms and empty tables can never generate any income. If, through discounted prices, these businesses can attract tourists, even if the margins of profits are slashed, then surely this is the way to go.
New low-cost flights on their own will not resolve the problems this industry will be facing in the coming months. Neither will additional expenditure in advertising do the trick, unless we come up with a package that can compete with what other destinations are offering. Potential visitors to the island almost always research their holiday well before it begins. They follow the advice of other visitors who post comments on travel feedback websites and decide very judiciously where to spend their hard-earned euros or sterling.
It is inevitable that, in our quest to become more competitive, we will suffer some pain. Jobs may be lost, profit margins will be slashed or even wiped out completely, at least in the short term, and greater efforts will be needed to fill up hotel rooms and restaurant tables than was the case in the past. But these adjustments are essential for the tourism industry to survive the world economic crisis.
The government too has an important role to play. This role relates less to the slashing of taxes on the activities of the operators in this industry and more to the upkeep that is needed to make the island look attractive to those who visit us. The maintenance of roads and historical buildings, unfortunately, still leaves much to be desired. The product matters.
The operators also need to pamper the local tourists, especially since in the prevailing economic slowdown more locals may decide to give up their annual trip abroad and spend their holidays in Malta or Gozo. Local tourism could alleviate the drop in business that hoteliers and restaurant owners are likely to experience as long as the operators entice local business through good value offers.
We need to think outside the box if the tourism industry is to survive this serious economic downturn. The solutions are there even if they may not be the ones we applied in the past.