A couple of weeks ago, in another Sunday newspaper, I called for the resignation of the Tourism Minister. This I did for two particular reasons. The first was that Dr Zammit Dimech clearly does not enjoy the confidence of most of the stakeholders in the industry; the second was because after failing to meet his own target of an increase of 50,000 tourists in 2005, the only excuse he coughed up was that this had been too ambitious. Unbelievable! In normal democracies, many would have been asking for his resignation. However this is Malta, a country where ministerial resignations are simply not part of political life.
Following my call for the minister to step down, I received several phone calls and SMS and numerous pats-on-the-back, telling me how courageous I was to ask for so much. I don’t consider stating the obvious as being courageous at all. I find it remarkable that, despite all the nagging, even after the announcement of the very, very lukewarm incentives for tourism on the eve of the MHRA’s extraordinary general meeting, nobody has yet called for his resignation.
One particular person, however, called to criticise me for “attacking” FZD. He said that it was damned easy for the Greens to ask for somebody’s resignation without ever having to put forward proposals. I rejected this person’s criticism outright because it is simply untrue that the Greens criticise without proposing. In fact, it is one of our principles that if we do not have an alternative, we just do not criticise; it is a characteristic that distinguishes us from the Labour opposition. On the phone, the gentleman and I agreed to disagree. However, I made a promise to him that I would be writing soon about why, for example, we believe that the Malta Tourism Authority cannot function properly. Here goes!
The MTA was born out of the smouldering ashes of the National Tourism Organisation (NTOM) and the Tour Operator Support Scheme (TOSS), with the intention of absorbing the functions and responsibilities of the former, while channelling the funds of the latter – originally ear-marked for subsidising UK tour operators – into marketing and promotional efforts. Constituted, as it was, as a public authority, (agreed in parliament by both government and opposition) the intention must have been for the MTA to act as a regulator in a similar manner as other regulators such as the Malta Communications Authority and the Malta Financial Services Authority.
In its supposed capacity as a regulator, as opposed to that of a promoter, the raison d’être of the MTA should be to protect the interests of the tourist, not those of the industry players. In the same manner, the Malta Communications Authority exists to safeguard the consumer of telephony services and not the interests of companies such as Maltacom and Vodafone. What the MTA, as a regulator, should be doing is ensuring that tourists get a good deal when visiting our islands. Its responsibility should be limited to monitoring and improving “Product Malta”.
To give just a few examples, the MTA should be scrutinising standards in our hotels, ensuring that restaurant kitchens are hygienic, that museums and other places of interest are properly maintained and equipped and that taxi and bus drivers behave courteously towards tourists, and preventing tourists being ripped off by opportunistic and irresponsible businessmen. To a significant extent the Malta Tourism Authority is fulfilling this role, operating as it is within a business environment that, more often than not, is culturally reluctant to accept any form of regulation.
However the MTA’s added-on role as the promoter of tourism sets it on an inevitable conflict-of-interest collision course with its institutional role as tourism regulator. The authority cannot spank the industry with the right hand and promote it with the left. The roles are incompatible. Additionally, the Greens believe that a public-sector organisation like the MTA cannot spend some 6-7 million liri on marketing, promotion and (now) branding with the same efficiency and effectiveness as the players in the industry.
Therefore the Greens envisage and recommend a different institutional set up for the Malta Tourism Authority. We believe that it should act solely as a public regulator. It must be equipped with the human and financial resources required to ensure the continual improvement of Product Malta. Government should strengthen its legislative remit and ensure that it has the tools to enforce standards throughout, with offenders being brought to book and repeat offenders being shut down. It is sad that a small number of operators are responsible for damaging the image and reputation of the industry, while most of the players work responsibly and professionally. Indeed, it is only government that can adequately monitor the industry – self-regulation never was and never should be an option.
On the other hand, the MTA should not be responsible for promotion. The industry should be given this responsibility. The funds earmarked for branding, marketing and promotion should be channelled to an industry group (a beefed up MHRA perhaps?) that will be responsible for spending this money after agreeing a broad marketing and branding strategy with the MTA that will act solely in this regard as the custodian and auditor of government funds. Gozo should have its own funds.
After all, it is only those operating in the industry that can set realistic targets for industry metrics such as arrivals, annual bed-nights and tourist spending. The players have the market contact and knowledge to set targets realistically and responsibly – the MTA and ministry can only make
educated guesses. In this way, responsibilities can be clearly allocated: the MTA will be responsible for product
regulation, maintenance and improvement, while the
industry becomes directly responsible for promotion. With responsibility properly apportioned we can, most
certainly, expect better accountability and, hopefully, better results. The way things stand at present, everybody (and nobody) is responsible!
Edward P. Fenech
Finance, the Economy and Tourism spokesman
Alternattiva Demokratika – The Green Party