MINISTER FOR TOURISM MEETS THE QUARTER OF MILLIONTH GUEST TO BUGIBBA HOLIDAY COMPLEX

Minister Refalo welcomes quarter of millionth guest to Bugibba Holiday Complex.

The Hon. Michael Refalo comments on MHRA's survey on the industry's summer 2000 performance; and on developments and trends in the international tourism scene.

Minister for Tourism Michael Refalo was at the Bugibba Holiday Complex this afternoon to welcome the arrival of the quarter of a millionth guest since the complex's first day of operations in 1982.

The Minister said that the leisure and hospitality industry as well as the Bugibba Holiday Complex had come a long way since that time. The complex, which hosts a house count of close to a thousand guests daily, was first refurbished and extended in 1991. The Island Hotels Group, which owns and manages the property, have just completed a second 18 month refurbishment programme.

"In a span of two decades Maltese tourism has been completely revolutionised. Most times to the good but sometimes also without much thought. In good times and also when tourism slumped the Bugibba Holiday Complex has been one of the industry's success stories."

Minister Refalo said that the Complex had achieved an overall average occupancy rate of 87% during all the years it has been in operation. "I congratulate Mr. Zahra and his colleagues at Island Hotels for a truly magnificent performance which serves as an excellent example of sustained success to other operators in similar accommodation establishments.

"I was also pleased to learn that the Complex achieved an occupancy rate for winter 1999 / 2000 of 82 % while summer's performance has hit a new high of 96 %. More important than that is the return guest ratio of 35% during winter and 18% in summer. A comparatively high guest return rate reflects client satisfaction and a good value for money service."

"The hotel's quality performance is not only recognised byyour returning guests but has received international recognition as RCI timeshare's premier grouping and British tour operator, First Choice, have deservedly given due acclaim to management with various quality and service awards."

The Minister then spoke about the industry's performance during summer and said that the year had started badly for international tourism as the expected Millennium increase actually turned out to be a substantial decrease. Easter coming late in April did not help matters either. However by mid-year Malta had all but recouped first quarter volume losses but the industry had earned more and employed more than in the comparative period of 1999.

"Feedback from the trade and hoteliers confirms that occupancy levels for July and August were on a par with 1999's record results. According to MHRA, which conducts regular phone surveys among a representative cross section of its members, September has turned out to be an even better month than September `99 while this October's out turn should show a continuation of this positive trend."

The Minister confirmed the view expressed earlier in the year that 2000 results would be quite similar to those achieved during 1999. "However in tourism every year has its own features and story and it is not unusual that changed circumstances convert into improved or lower than anticipated results."

Minister Refalo then referred to the major developments which have recently taken place in the international tourism scene. He said that Preussag (TUI)'s acquisition of Thomson Holidays was bound to have repercussions on the UK tour operators performance to Malta. "Preussag will not be looking for increased market share but for increased profits for its stock holders." This, according to the Minister, meant that Thomson Holidays would substantially trim volume to ensure that programmes are sold at brochure prices and not discounted. In the past Malta had always gained from late bookings and discounts but Dr. Refalo believed that one could not depend on that happening. "The UK's major tour operators will channel slack to destinations where they have most exposure and investment and where they can send millions not a few tens of thousands. To compound the issue two days ago C & N (Neckermann) announced its acquisition of Thomas Cook."

The Minister added that in anticipation of these developments MTA had kept close contact with all the major UK and German tour operators and had adjusted policies and strategies accordingly. "It was only last week that discussions were held between MTA and UK operators in London while the overall slackening demand in Germany for foreign holidays as well as Airtours' acquisition of Frosch will be on the agenda when MTA officials meet German tour operators this week."

The Minister said that what applied to prospects from Thomson Holidays was equally applicable to Frosch which had acquired a dominant position in the German market to Malta.

"Who would have ever imagined that Thomson Holidays, the UK's Number One tour operating company, and Thomas Cook, one of the oldest British holiday companies, would end up being owned and managed bythe two largest German operators? But they have. It is therefore of the essence that all players in our leisure industry, employers, employees, service providers and suppliers should be flexible enough to adjust quickly to the impacts of these international developments."