I refer to your extensive report on the issue of passengers and vehicles crossings between Malta and Gozo and vice versa (TMID, 15 June). In Malta, it seems that every statement is countered by another statement but in between I believe that we miss the forest for the trees.

Gozo Channel Company Limited operates a monopoly service and has become infected with the virus of over-employment, a virus that seems to be widespread among state-owned bodies.

A recent case in point was the endless debate about the Malta Tourism Authority where, it seems, a considerable amount of its budget was being spent on salaries rather than on an aggressive and focused marketing campaign to promote Malta as a tourist destination.

Figures have been quoted from other such organisations that employ fewer employees but have much greater tourist numbers visiting their respective countries.

The crossings service is influenced by what is known as demand elasticity and I am quite certain that any increase in price would reduce the number of potential persons/vehicles willing to cross from Malta to Gozo. Although the company enjoys a monopoly, it cannot assume that every increase in price will automatically transform itself into an increase in total revenue, since total revenue is equal to the number of passengers/vehicles making use of the service multiplied by the price.

Given the decline in tourism figures for Gozo, it might be beneficial to consider a reduction in the prices of Gozo Channel Company Limited, as this would increase the potential market size. The company can also undertake a demand elasticity study to measure the impact of such a strategy. The study should be carried by the company’s staff and without using any outside consultants as, after all, this is part of their normal duties.

On the hand, it seems to me that Gozo property rentals are not competitive. One finds thousands of cheaper and better properties on mainland Europe and therefore the whole cause of any reduction in tourist arrivals in Gozo must be critically evaluated by all stakeholders.

One cannot blame only the cost of the crossings’ service. To add insult to injury, the present devastating scene at Mgarr Harbour, with that unfinished concrete monster as the visitors’ welcoming monument is really another failure certificate for the current rulers. It is a shame to all those that believe that Malta and Gozo have become a utopia where everything the government touches becomes gold.

But the sun is rising too. In 2005, the Malta Tourism Authority is undertaking a new and yet another study on the branding of Malta as a tourist destination. I wonder what the basis of previous campaigns was.

Were we shooting millions of liri blindfolded? How can one enter into a marketing campaign without knowing what is the product being sold. One can hope on the saying, better late than never. I bet that by the end of this year, we will need another study to tell us why we needed the first study after all.

Jimmy Magro

Zebbug