ADDRESS BY THE HON. MICHAEL REFALO MINISTER FOR TOURISM AT THE SEMINAR ON A RECLASSIFICATION EXERCISE OF THE TOURISM ACCOMMODATION SECTOR

ADDRESS BY THE HON. MICHAEL REFALO MINISTER FOR TOURISM AT THE SEMINAR ON A RECLASSIFICATION EXERCISE OF THE TOURISM ACCOMMODATION SECTOR

Ever since the Malta Tourism Authority published its Strategic Plan for the current triennium, we have regularly been witnessing the launch and pursuit by the Authority of a series of initiatives outlined in the plan. Today's occasion is one such event.

For some time now the industry has felt the need for a more coherent and holistic approach to the classification of the accommodation sector. In the past we have had Danish and British consultants, advisors who gave us the benefit of their knowledge and expertise without however actually fully trying out, hands on, the system they had proposed.

Although it is extremely difficult, if not virtually impossible, to create a system equally applicable to all countries and tourism destinations, to all continents, cities and resorts, MTA's approach to solve this perennial problem was the engagement of consultants whose track record is as enviable as their expertise in this field.

Of note in THR's C.V. is their having surveyed and classified hotels in the Balearics and the Spanish Mediterranean littoral. I must therefore not only commend MTA for embarking on this initiative but the more so for the choice of consultants made.

Much preparatory, behind the scenes, work has been done by George Micallef and his team from MTA's Planning and Product Development Directorate. Today's launch reflects THR's hotel grading philosophy backed up by the Directorate's knowledge of the local trade and visitor demands.

The current system, driven by HCEB, has often been most unjustifiably plagued by criticism especially from quarters whose expectations were not met. The system has however stood the test of time. The HCEB Board is composed mainly of trade representatives and other experienced in the industry and it is therefore a pity that the small country syndrome, or more likely the puny mind complex, has fomented the unjust charge that, in so far as HCEB and its inspectors go, it is not what one does but who one knows that really counts.

This sorry situation of innuendo and suspicion is compounded by a provision in the HCEB Act that empowers persons aggrieved by the Board's decision to appeal direct to the Minister !

I recall just two or three occasions when operators resorted to this rather dubious practice. However in the knowledge that persons in the trade, rather than politicians, have the required ability and competence to decide on matters of a purely technical nature, I upheld HCEB's judgement on each and every occasion that I was called upon to decide.

In the very early stages of discussions which ultimately led to the setting up of MTA, I made it a point to see that the Minister should not impose his judgement in appeals from decisions of the Authority and Directorates, and that these should be decided by an Appeals Board as now established by the Act.

Given this rather chequered background it was of the essence that any new reclassification exercise should be clear and easily understood, stand the test of the trade's trust and acceptance, and furthermore, to ensure objectivity of judgement, it was paramount that the whole process, from A to Z, be transparent.

Fairness and consistency are two other sine qua non aspects of the classification process. Flexibility in any degree, to adjust to local conditions, different locations and types of property must be uniformly applied across the board. In my book flexibility does not mean stretching parameters to their limit, simply to suit or accommodate particular establishments, but part of a process which embraces whole categories and classes of hotels.

Furthermore, in an industry whose watchwords are service and friendliness, a system of control should not be seen to be merely punitive. It should be designed to assist and allow sufficient time for defaulting or below par properties to adjust and adapt. However, once that period of grace lapses the system must be equally strict with those unable or reluctant to make good for their failings.

The classification system which MTA will put in place has all the attributes of fairness, uniformity, transparency, customer friendliness and control which the travelling public demands and the trade requires.

Inspection teams led by THR consultants will give on the job training to MTA personnel and new recruits. I will not enter into operational aspects but what I have just said clearly proves that the gradual, sensible, step by step approach is the correct way to manage the take-over of the current HCEB regime by the new MTA set-up. As we move along with the times the lesson learned here is not how quickly one is able to change, but how effectively one completes the process.

Parallel to the conclusion of MTA's recruitment drive the appropriate enforcement and appeal structures will be in place by the first quarter of 2001. In the meantime, a modus vivendi has been found to allow HCEB and MTA work in unison during the transition period. Both bodies will be working much closer to each other and certain functions may be delegated.

Two weeks ago I announced that applications for upgrading hotel classification would not be entertained during the transitional period. I must emphasise however that HCEB enforcement will proceed as normal, including the downgrading and closure of establishments if need be.

It is the Ministry's and the Authority's policy to take the trade into our trust and to work in tandem with the industry. I must therefore, even at this early juncture, make it crystal clear that the powers which the Act provides and equips the Enforcement Directorate, are much stronger, faster to apply and, therefore more effective, than the ones prevailing under the HCEB regime.

It is in everyone's interest, especially to safeguard the reputation of the industry as a whole, that we ensure complete and absolute compliance with all norms relating to the service and physical criteria. A small country such as ours can ill afford bad publicity in a foreign media which does not distinguish between Sliema and Bugibba, much less between one hotel and another. Experience tells us that negative news, at best, is reported to originate from Valletta, but more often than not it is the whole of Malta that gets the flak and the bad publicity.

Since this occasion refers to one particular aspect of our tourism product I will resist the temptation to digress and speak about the current state of hotel occupancy. There is no need for me, or indeed for anyone else, to tell hoteliers and operators anything on a matter about which they have better first hand knowledge, except that house counts achieved reflect the degree of proactive marketing and promotion, of customer friendly service or the absence of either.

Today's seminar has concentrated solely on one aspect of the accommodation industry:- the 246 hotels, complexes, guest houses and hostels. This is just the beginning as the MTA will in turn inspect all other guest accommodation premises including apartments, villas, houses, farmhouses and private residences which host students as well as adults.

Every property will be inspected and the same approach that MTA takes with the hotel sector will be applied in these cases. Again I feel in duty bound to give notice that fines of up to Lm1,000 can be imposed on defaulting owners of properties. For example, host families which take in more than four people at any one time, operators who let properties to foreigners without the requisite

licence, are liable to this fine. I therefore advise everyone currently in default to comply with the provisions of the law before it is too late. I also warn defaulters that under the new law the onus to prove innocence is shifted from the prosecution to the accused.

Hotels are just part of the accommodation sector, and the segment is only a slice of Malta's overall tourist offer. The search for excellence and the quest for higher standards does not begin and end with bedstock, hotel amenities and facilities.

Because of our particular circumstances, especially the smallness of our land area, it is our islands and the Maltese people in their totality that we offer. However, today, I will not dwell on the negatives which the trade and I wish to see eliminated, but I will conclude this address on a much more positive note.

We must not stand on the side lines of the world stage and simply watch a continuous process of globalisation. At this moment in time, following Preussag's bid for Thomson Holidays, Airtours acquisition of Frosch FTI, it is Neckerman (C & N) that is talking to Airtours. It looks as if two mega operators will soon become even more influential in Europe and beyond. Their size and profit motive, not some search for market share, will dictate the fortunes of destinations and, in our case, because of the smallness of our national economy, our very future.

It is therefore essential that we do not allow the globalisation process to pass us by. There is a role for us and a part, albeit a small to play, in the evolution and the development of this process. Success in this role will depend solely on how relevant and sectorally important we prove ourselves to be alliances with present day decision makers in the global tourism scene.

To do this we must develop our strengths and further highlight those aspects which make Malta and Gozo different from other Mediterranean islands. Oases of peace and stability, a show window of man's passage in the Mediterranean throughout the millennia; blessed by a mild temperate climate, peopled by men and women, the majority of whom give an honest day's work and have a better command of languages than our neighbours; islands surrounded by the cleanest and bluest seas in the region. These are our strengths. To achieve this objective Government and the Malta Tourism Authority need the active co-operation and support of all Maltese.

The sea is one of our greatest assets. In this regard my Ministry has commissioned a study to be completed by August with a view to extending the sandy beach at St George's Bay in St Julians. MTA is in the process of completing the development of a small beach in Sliema, a pilot project, which one hopes, will be the first in a series.

In the meantime MTA's Paris Office has successfully revived La Bord'�e Maltaise, a popular yacht rally, and a number of sailing boats are scheduled to make port this weekend. Following the basing in Valletta Harbour of Nouvelles Frontieres' cruise ship this summer, we are close to striking alliances with other tour operators to opt for Malta as their operational hub in summer 2001.

This week as well, precisely this evening, we will witness a signal occasion, a red letter day in Malta's vast offer of unique cultural experiences: the long awaited re-opening of the Hal-Saflieni Hypogeum, in itself a major event. This event deserves a much larger statement than this evening's low key inauguration. My colleague Minister Galea and I have agreed that MTA will drive an international launch and presentation of this unique treasure.

Yes, we hold a veritable treasure trove. World Heritage sites which unfortunately deteriorate and erode as every day passes. This country needs millions, which it cannot afford, to put right the ravages of time and the elements which threaten all our Neolithic temples.

Government, as in the case of the Hypogeum, will find some money, but this is not enough, and I repeat my call to the international community, especially those businesses which have found in Malta a profitable base for their operations, to stand up and be counted.

Here again, the Authority, has played a small but very significant part to project the message that our cultural heritage is integral to the complete visitor experience. The partnership, consolidated last Tuesday between MTA and Din l-Art Helwa is an event that should not be allowed to be a 24 hours wonder. It is therefore my pleasure to make my own personal contribution to the Tourism Heritage Fund and urge as many as possible to do likewise.

By updating the trade and the media about the many things that are happening to further boost and promote the image and product of our islands, I have neither the intention nor the wish to deflect attention from today's main theme: that of ensuring that guests find comfort, service, value for money, and the actual delivery of what brochures promise them during their stay in Malta and Gozo.

What I have said in the latter part of my address to you is only a natural corollary complementing the subject of today's Seminar. For indeed, why travel to a destination which just offers excellent accommodation if then one finds nothing to do and even less to see?