Low-cost carriers and aggressive marketing campaigns in 2007 left the Malta Tourism Authority with a deficit of Lm2,607,043, according to the authority's annual report.
The report was laid on the Table of the House yesterday by Parliamentary Secretary for Tourism Mario de Marco. It states that expenditure for the year amounted to Lm13,085,307, a 21 per cent increase on the previous year. A number of strategic marketing campaigns with leading tour operators as well as national and low-cost airlines were undertaken.
Expenditure in advertising, promotional and marketing expenses amounted to 70 per cent of the authority's total expenditure, at Lm9,233,621, marking an increase of 22 per cent on 2006.
Expenditure on product, planning and development more than doubled to reach Lm1,001,149. Several projects were undertaken to further enhance the Maltese islands' product offer.
Administrative costs increased by Lm67,037, in line with the MTA's policy to divert available additional funds to direct overseas advertising and promotion.