Tourism Minister Michael Refalo overviews Tourism Markets

• Holidaymakers' quarter century loyalty to Malta
• Encouraging results for March 1999
• British market stutters

The Minister for Tourism, Dr. Michael Refalo and Ministry officials toasted the health of Mrs. Josephine Mortram and her son David, who are celebrating the twentyfifth anniversary of their first holiday in Malta, during a small reception in their honour in the gardens of Palazzo Spinola. The Mortrams have visited more than twenty five times since 1974, when they stayed at the Hilton. They subsequently holidayed at the Sheraton Dragonara and for the last five years chose The Preluna as their holiday hotel.

Minister Refalo said that the Mortrams were a living proof of their loyalty to Malta. Commenting on a recent "Carrying Capacity Assessment Report" which suggests that the repeat visitor percentage is not as high as one would like, the Minister said that due to Malta's smallness one could not expect the percentage of repeat visitors to be substantial.

"The main reason why visitors to Malta return many times is because they meet and make friends with Maltese families. They first come to Malta as visitors and on subsequent occasions come back as friends". The Minister again emphasised the important role which all Maltese and Gozitans can play to support and strengthen the tourism industry.

The Minister said that ever since the last quarter of 1998, following visits and meetings with tour-operators in Malta's source markets, feedback received indicated a good year ahead. The German market was unusually buoyant and other mainland Europe markets, notably the Benelux, showed encouraging signs.

1999 results reflected that feedback. The first indications for March show that Malta has again done very well in Germany, Holland, Austria and Switzerland, moderately well in Italy, and since the commencement of flights from Scandinavia, exceptionally well in Sweden and Norway.

"All in all I expect a percentage increase for the month of around 5%", said the Minister.

Referring to the British market, Minister Refalo said that the economic situation in the UK where the total outgoing market had shrunk by 1% boded for uncertain prospects. "One can only reasonably expect 1999 to, at best, retain 1998 levels. The situation is compounded by the problems which two of the larger tour-operators working with Malta and other Mediterranean destinations have encountered".

"Just as we had anticipated a good year from continental Europe, we had also read the signs of consumer uncertainty in the UK. UK market results in volume terms for Winter 1998 / 99 show a loss of 2000 visitors when the total to Malta for all markets has increased by 20,000. March figures may show a further 6% decline".

"The UK market is the only one which benefits from an exchange rate subsidy and where most of NTOM's Tour-Operator Support funds are channelled. We take no comfort that Spain is losing more than Malta. Malta cannot revive UK consumer confidence and it makes no sense to reduce prices which are already more than competitive. We must however make sure that we retain 1998 levels. In contrast, the Irish market, Britain's former poor relation, where the economy was booming, was delivering excellent results."

The Minister concluded and said that "Thanks to the tourism industry's efforts and the results of farsighted market diversification policy as against near total reliance on the UK market, still Malta's most important market, we can look forward with quiet confidence to a good 1999".