POINTS FROM AN ADDRESS DELIVERED BY THE HON. MICHAEL REFALO, MINISTER FOR TOURISM, AT THE THOMSON HOLIDAYS GOLD AWARDS CEREMONY

• "QUALITY AND ENVIRONMENT THE WATCHWORDS".

• "PREUSSAG TAKE OVER THOMSON HOLIDAYS".

• "NEW TOSS SCHEME WELL RECEIVED".

• "A GOOD SUMMER AHEAD".

Minister for Tourism Michael Refalo congratulated the management and staff of the SAS Radisson Bay Point, Coastline and Comino Hotels, the three award winners, and said that as a travel company Thomson Holidays always laid great stress on quality. It is also a staunch promoter of environmental issues.

Minister Refalo said that "The awards reflect Thomson Holidays' concern with quality and environmental considerations. Winners are chosen not simply because they have sold well and served Thomson clients even better, but because they have shown a similar approach to quality and concern for the environment".

Thomson Holidays has had a long and successful association with Malta and Maltese suppliers. The company's current package holiday programme amounts to around 85,000 while a further 15,000 are carried on a seat only basis. The Minister augured that as Thomson Travel Group Plc had just been acquired by Preussag AG, Europe's largest tourism company, that this association would not only be maintained but also strengthened.

"While Thomson Holidays have always been close to Malta's tourism community, TUI, Preussag's main brand, in contrast with other large German tour operators, has somehow never really promoted the Maltese Islands as much as we would have liked. It is early days yet and I hope that Thomson's past experiences of Malta's tourism and future performance will lead to a more substantial TUI presence in our islands" said the Minister.

To obtain regulatory approval it is expected that Preussag's TUI will sell its majority holding in Thomas Cook, currently the UK's third largest travel agency, as well as half its share in Hapag-Lloyd AG.

The fast changing ownership scenarios show very clearly that within a few years the major influence on tourism world wide will emanate from three, maximum four, global groupings. Unless Malta and all Maltese, not just those directly involved in tourism, understand that the watchwords for the decade are achieving quality and a better environment with concerted action directed towards that end, there is every chance we could find ourselves lagging behind our competitors in the race for custom" warned the Minister.

Minister Refalo then referred to a telephone conversation which he had just had with MTA Chairman Dr John Grech who, together with MTA Chief Executive Major Alfred Cassar Reynaud, is currently in London for discussions with UK operators.

"Dr Grech told me that the changes which Government has made to the Tour Operator Support Scheme have been well received. Most operators agree with the new emphasis on performance related premia as against the former scheme which had served us well, but where support was given on a flat rate basis. In time the change from one type of scheme to another will make it possible for more support to become available to non UK tour-operators."

Following the expected lower returns from the UK market during the first quarter Minister Refalo said that all indications show that in volume terms April 2000 was not only one of the best-ever but a month during which the British market may even have surpassed 1999 levels.

"If I over enthuse on this result I would be making the same mistake as those who negatively commented on March 2000 results. March and April should never be seen independently because much depends on when Easter happens to fall."

"MTA's Director in London, John Montague, tells me that most small to medium operators report excellent summer sales. Although some of the larger operators tell us that, as forecast, May and June may be slightly lower than in 1999, they confirm that current bookings for July to October exceed 1999 trends".

Minister Refalo concluded by saying that these most encouraging results were the just return of the hard work put in by tourism's public and private sectors. "As everyone stands to gain I expect everyone to contribute and make 2000 a more successful year. One where we will give our visitors more value for money, a more satisfying experience, more friendship, more hospitality and a holiday which makes them want to return for many years to come".