From the outset one must acknowledge that 2012 was a good year for tourism. But one also needs to analyse deeper certain figures and results achieved as some statements being made repetitively about bumper records may require some qualification.
In the first instance comparisons need to be made appropriately. The figures for 2012 are being compared to 2007 results and not to those of 2008 which was the record benchmark year normally referred to. This selective knack for comparisons that suit best the ministry is obviously made to magnify the ‘success’ achieved.
Government has embarked on a very good PR exercise to promote in no uncertain terms the results achieved in tourism, repeatedly referring to record breaking results on consecutive months. This is true, but perhaps rather inflated, as arrivals for 2012, according to the latest NSO Statistics, i.e. for January to November 2012, shows that the increase represents only 1.9% on the previous year or an increase of 25,000 tourists, out of which, just over 10,000, are attributed to Libya, now that the crisis in the North Africa is over. Let's hope that these numbers can be sustained.
If one looks at the number of arrivals by type of accommodation, one notes a significant shift in the form of an increase in private accommodation and rented accommodation (comprising holiday furnished premises), with an increase of 6.7% and 44.6% respectively, whilst hotels dropped by 1.7%.
This is somewhat concerning, as we are not only seeing a shift to less productive accommodation types, but to type of accommodation where industry representatives have repeatedly claimed that abuse is rife through unlicensed operations.
This means that government is losing out on substantial revenues in the form of VAT and other taxation as well as with quality control amongst other things. This could be why tourists’ arrivals in hotels, which carry a high investment, are dropping, despite the increase in tourist arrivals. It is clear that hotels are losing out on unfair competition whilst government seems unfazed about the situation. This argument is based on NSO statistics.
Government also needs to seriously consider what the industry has been saying for the last couple of years, that despite the increases in tourist arrivals these have still not translated into a decent return that can guarantee further investment. In fact the industry has been expressing concern about its sustainability in the medium term. Costs have continued to chew into the gains in tourism, and energy remains a main area of concern which a labour government will be addressing concretly.
We also need to look at what is happening during the winter months which are very important for the industry and its sustainability.
Tourists arrivals according to NSO for January to March 2012 dropped by 25,000 tourists in 2012, almost 11% (143,000 bed nights) which have increased the burden of the losses which have to be endured during the winter months by most tourism operators.
It appears that this winter, certainly between January and March of 2013, we will operate with similar seat capacities like those of the previous winter, which means that in all probability we will, this winter, once again experience the drop in numbers on the figures achieved in 2011.
So in the first instance we need to work to reverse this trend and at the least recover the 25,000 tourists lost.
This is crucially important as this will help hotels and restaurants and other tourism businesses stay open all the year round, whilst retaining employment levels, which will help the industry improve its sustainability.
I believe that the government needs to be transparent and consistent when it refers to statistics. As of recent NSO is now referring to cruise passengers that happen to be visiting Malta and stay overnight as the cruise ship simply happens to berth overnight. There is absolutely no value added for any type of accommodation.
It appears that government is trying hard to inflate figures.
Dr Gavin Gulia is the Opposition’s Main Spokesman for Tourism and AirMalta