The best recent economic news must certainly be the one relating to the 13 per cent increase of tourists visiting Malta in the second quarter of this year when compared to 2009. This resurgence could never be taken for granted as most European countries are still struggling to come out of the economic slowdown that has plagued Europe and the US for the past two years.
Success, as they say, has many fathers. So, it is inevitable that many will claim that without their input this resurgence would never have materialised. The facts behind this success are understandably varied. While unemployment continues to grow in the major EU states, those still in employment may be feeling that the worst is really over and they can once again afford to take their annual holiday abroad after giving up on this last year.
The troubles in Greece have also helped to make other Mediterranean destinations, including Malta, more attractive in the eyes of potential travellers. While some had predicted that the Greek tourism industry would boom in 2010 as a result of the country’s efforts to reduce costs to energise their industry, civil unrest extensively reported on TV evening news made sure that many families decided to give Greece a miss this year.
On the local scene the increase in aircraft capacity, mainly as a result of the assistance given to low-cost airlines, has so far produced good results. Low-cost travel does not necessarily mean lower spending tourists. European tourists are increasingly taking low-cost travel for granted and most prefer to travel only to those destinations where this option exists.
But our tourism operators will do well to understand how low-cost travel is evolving. According to Ryanair CEO Michael O’ Leary, low-cost travel will have to change in the near future, if this industry is to survive. Moreover, one of our main competitors, Cyprus, has now made arrangements with Ryanair to ease the flow of tourists from the UK, Ireland, and other destinations.
Those of us who have the future of Air Malta at heart are awaiting the outcome of the restructuring negotiations that are being conducted at present with the European Commission in Brussels. Low-cost airlines are mainly committed to make a return to their shareholders. Public ownership of Air Malta has ensured over the years its unflinching support to our tourism industry. One cannot but hope that our national airline will be allowed to continue to follow this ethos.
At the micro management level of the industry we have had varied experiences. Beaches have this year been cleaned more frequently, and so have certain key tourist centres throughout the Island. But there have been many incidents where the insensitivity of decision makers has been painfully obvious. The refurbishment undertaken in Valletta at the peak of summer, the digging up of the promenade in Marsaxlokk, and the continuous construction going on throughout the year in Sliema and St Julians have done nothing to help tourists take back happy memories with them following their visit to Malta.
The quality of many of our roads continues to be unacceptable. The traffic management system has hardly seen any improvements in the last year. Even simple things like eliminating dangerous view-obstructing bushes from centre strips near roundabouts, or removing trees planted in the middle of one metre wide pavements remain undone. The implementation of the much awaited transport reform remains painfully slow. These are little things that can affect the way tourists judge their experience in Malta.
The present resurgence of tourism, while undoubtedly raising the morale of operators and those employed in this industry, is not an unmitigated success. The MHRA conference has heard that the profitability of the industry has suffered in the last two years when a 25 per cent drop in profits was recorded.
Experience has taught me that when an industry consistently misses its profitability targets, business owners start to put in place false economies. Such economies could include a cutback by hotel operators on maintenance and refurbishment of their hotels that in turn devaluates the product that we offer to tourists. Restaurateurs may decide to economise by compromising on the quality of the products that they use to prepare meals while expecting tourists to continue to pay premium prices.
So, tourism still faces challenging times. Our best guarantee for success must surely be an uncompromising commitment to excel in the quality of the experience we offer our visitors.
jcassarwhite@yahoo.com