Despite the government’s repeated optimism, things do not look too good in the tourism sector.
It is true that from November to March tourist arrivals increased by an average seven per cent, but in comparison to 2005–2006 it is a bad year for tourism. Furthermore, as tourists now stay for fewer days, the average length of stay is down.
The 11 per cent increase in March (NSO figures) thus becomes a meagre one per cent growth when one factors in bed nights.
Taken over a longer time frame, the situation looks more worrying: the drop in tour operator business is worse than expected and even MIA recorded an increase of just one per cent in passenger traffic in April, which will work out on the NSO figures as a month of no growth at all.
It is true that April last year was the best month of the year but it is also true that the situation as from this month looks gloomy to people in the business. We are talking of a slight increase in the arrivals figure but shorter stays.
Tourism is still in a crisis, despite Ryanair introducing three new routes, the arrival of Clickair and of Germanwings. Without these low cost carriers, tourism in Malta would be in a state of disaster.
In an interview given to this newspaper, MHRA chairman Josef Formosa Gauci and deputy chairman Michael Zammit Tabona said something must be done about this state of affairs. It is simply not true that this summer there will be overbooking; in fact some hotels are looking at their May and June figures in something of a panic. There are even four-star hotels in Bugibba and Qawra that have come out with prices like Lm4 half-board in June: imagine what this does to the three-star hotels!
From what its members tell it, the MHRA top level perceives that Air Malta is finding the going difficult, which has been confirmed, in their eyes, with Air Malta extending its cheap seat offers. At the same time, both British Airways and Ryanair flights from the UK are quite full.
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They ask: if the trend is for people to choose low-cost, why pay Lm190 for a seat with Air Malta? The economic model Air Malta is working on is not functioning, they said, and Air Malta’s marketing was late.
They also conclude that Air Malta cannot compete with low cost carriers and win. The national airline should set up its own low cost airline and run it on a shoestring, just like low cost carriers do.
It is then simply not good for Malta if the national airline continues to block the opening of new low cost routes. No country in the world survives against the trend, and Malta is no exception.
It is good that routes serviced by LCCs have been opened and that Ryanair will be taking up the German route from Bremen, but Malta needs to give access to LCCs from Britain since the UK is the country that most uses LCCs. It is a major achievement to have Ryanair take up the four new routes but Ryanair did not demand a UK airport because it understood this would not be welcome.
But if Malta were to open up the UK for LCCs, the MHRA top brass continued, and get EasyJet in the bargain, it would reduce Malta’s growing dependence on Ryanair. Nor does this mean EasyJet should be offered Gatwick but a solution should, and must, be found for EasyJet.
As regards other issues regarding tourism, the MHRA officials said the tourism ministry is now working hand in hand with the people in the sector, but problems at MTA still persist. Everybody at MTA must pull his weight and problems must be addressed even at the cost of courageous decisions.
As regards the branding contract given to Media Consulta (see page 10) the MHRA officers said that while the evaluation of the tenders was done in the correct way, their contacts with the UK tourism sectors have not heard of Media Consulta, which makes them (MHRA) fear the agency may not have enough clout with the British media.
Nor do they completely agree with using MTV for advertising Malta as this is watched by mainly 16 to 18-year-olds and would only serve to increase the student figures, of which Malta already has a surfeit.
And as regards MTV, they ask if the Lm375,000, which reportedly is being spent to organise a big MTV party on the Floriana Granaries on 26 July, will be paid for from funds the government approved for the branding of Malta or from a separate vote. And if the money is coming from the MTA vote, what then is it being at the expense of? MTA must get its priorities right.