Prime Minister Robert Abela, at the 1 May celebrations, declared that Malta's economy is a "miracle". This success is due to a massive increase in production, achieved by the importation of low-paid third-country workers and unbridled mass tourism attracting millions of low-value visitors.
This success came at a cost, including high inflation, especially in the housing sector, pressures on the public infrastructure, deterioration in the state of the environment, noise pollution and increasing social discontent. The debacle of rendering Comino beach into a cacophony of bathers, all fighting for a sliver of sandy spot spoiled with loud music and general untidiness.
Again, the building of a resort in soulless concrete at Santa Maria Bay on Comino with various bungalows and a hotel ruins the peaceful enjoyment when visiting the island. More greed is manifest with the intention of building Manoel Island by extending its expired contractual date of completion. Yet, notwithstanding the general image of an over-built island, heavy advertising over past decade has attracted 3.7 million arrivals (mainly low-value tourists who on average spend €134 per capita) mostly flying low-cost airlines.
The attraction of Malta can be attributed to various factors. This includes historical sites to its azure coastlines, as the island leverages its rich heritage to attract visitors eager to explore its unique offerings. However, the journey towards a quality resort recovery encompasses more than a mere numerical increase.
The island's ability to attract international visitors amid global uncertainties emphasises its need for strategic enhancements in infrastructure and professional tourism management aimed at delivering value alongside enriching cultural experiences. It benefits from its relative geopolitical stability. But it is not a rose garden. A few economic concerns cloud its future as a popular resort.
This includes inflation, with travel costs escalating, tourists seek destinations that promise substantial value - a niche that Malta effectively occupies through its competitive service offerings and appealing attractions. This balance is crucial for maintaining the growth momentum in an economically volatile environment. As such, we need to be able to understand fully that what yields a financial benefit in the short run will not necessarily prove to be beneficial to the economy over a number of years.
We must look at the bigger picture - as did Virtu Ferries, which lately invested €6 million and acquired a 24,000 square metre site overlooking the port of Pozzallo from the Regione Siciliana. This is a logistic hub set to attract more trade and an improved tourist facility for visitors to Sicily. The facility will include a business centre, office space, parking facilities for light vehicles and trailers, storage and warehousing areas and accommodation for commercial vehicle drivers.
One may stop and reflect what is keeping Sicily from reaching the same success as Malta as a top tourist destination? While Sicily has a strong cultural identity, its marketing efforts have been less cohesive. The island is sparsely populated and is often perceived as a collection of individual destinations rather than a unified tourist experience. Sicily is a unique treasure trove of cultural experiences that can attract tourists from around the world. It is home to a wealth of historical and archaeological sites, including the Valley of the Temples in Agrigento, the ancient theatre in Taormina and the well-preserved ruins of Selinunte.
These sites showcase the island's rich Arab, Greek, Roman and Byzantine heritage. Tourists can enjoy unique dishes such as arancini (stuffed rice balls), caponata (eggplant dish), and cannoli (pastry filled with sweet ricotta). Like Malta, Sicily hosts numerous festivals throughout the year that celebrate local culture, religion and history. Events like the Feast of St Agatha in Catania, the Infiorata flower festival in Noto and the Sicilian puppet theatre performances (Opera dei Pupi) provide immersive cultural experiences (not forgetting the famous traditional Sicilian tarantella).
Currently, Malta's advertised attractions beat Sicily's rich artistic heritage particularly in cities like Noto, Ragusa and Modica. This is not to forget Sicily's diverse grape varieties and unique wines. Visitors are spoilt for choice, including Nero d'Avola and Marsala. Nothing compares to its religious heritage with numerous churches, monasteries and pilgrimage sites. The stunning mosaics of the Palatine Chapel in Palermo and the Cathedral of Monreale reflect the island's Byzantine and Arab influences.
It has breathtaking natural landscapes, including Mount Etna, Europe's highest active volcano, and the stunning beaches of the Aeolian Islands. Outdoor activities such as hiking, swimming and exploring nature reserves provide a unique way to experience the island. By highlighting these unique cultural experiences, Sicily can attract tourists looking for a rich and immersive travel experience that goes beyond typical beach vacations. In summary, while Sicily has immense potential as a tourist destination, various factors such as infrastructure challenges, marketing strategies, safety perceptions and competition have contributed to its slower growth in tourist numbers when compared to Malta.
Yet, one comes to realize that Sicily, with a population of just five million, competes not only with Malta but also with other Mediterranean destinations like Greece, Spain, and mainland Italy. These regions often have well-established tourism industries and can offer similar attractions, making it challenging for Sicily to stand out.
Perhaps, Sicily deserves a larger marketing budget to attract a higher cohort of quality visitors, preferably all year round. It is true, that Sicily has a wealth of attractions, yet the diversity of experiences can sometimes lead to a lack of focus in marketing. Tourists may find it overwhelming to choose from the many options available, whereas Malta's more concentrated offerings can make planning easier. By addressing these challenges and enhancing its marketing efforts, Sicily could significantly increase its appeal and attract more visitors in the future.
An important drawback is that Sicily's tourism is often more seasonal, with peak visitors during the summer months. Catania and Palermo now boasts of direct flights to the United States. This connectivity helps Sicily's popularity. It is booming with quality tourists while Malta is attracting loads because of being cheaper. In conclusion, comparisons can be misleading as it is spurious to talk of superior returns in Malta if that economic growth is achieved at a great social cost.In the medium and long term, that social cost will lead to a financial cost such as lower productivity, burnouts or higher healthcare costs. Policymakers must acknowledge that over-reliance on domestic consumption, increased public borrowing, frothy economic growth thanks to an increase in TCNs doing low-paid work and total reliance on property development are not the best pillars on which to build our "miracle" economy.
George M. Mangion is a senior partner at PKF Malta
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