POINTS FROM THE CONCLUDING ADDRESS BY THE HON. M. REFALO, MINISTER FOR TOURISM, FOLLOWING THE PRESENTATION OF THE MANUAL OF STANDARDS FOR EXISTING AND APPROVED TOURISM ACCOMMODATION ESTABLISHMENTS.

Minister Refalo began by thanking all those who had contributed their time, effort and expertise to the preparation of the manual. He singled out for special mention, Mr. George Micallef, Chairman of the Product Planning and Development Directorate, Mr. Mario Attard, who led and coordinated the technical task force, MHRA representatives Mr. Chircop and Mr. Yeomans as well as Mr. Lino Farrugia on behalf of FHPCE. The Minister thanked THR and Integral consultants as well as the director, executives and staff of the MTA's PP & D Directorate for a job well done.

The Minister emphasised that the Manual had been drawn up for existing as well as approved accommodation establishments and added that "It would have been unfair to those already operating properties as well as to those whose properties are still in the construction stage following PA approval, had we decided to move existing goal posts."

Occasion has been taken to bring some policies into line with the times and with modern day needs by eliminating the One Star category and according a different classification to those properties.

"We also wish to encourage the trade to invest in old properties in the historic cores of Valletta, the Three Cities and Mdina. We want to channel investment there and bring our old cities back to life. Old town mansions make admirable properties for small, select, boutique hotels."

The Minister said that given the excellence of the quality and service a five star grading could be awarded in such cases even where a property was not detached. Minister Refalo added that properties in foreign resorts were awarded five star grading even when not altogether detached from neighbouring buildings. "Although as a general rule policy for existing and approved properties the policy remains the same, the updated manual provides that in exceptional cases where a property satisfies the Directorate of its high degree of finishes, facilities, amenities and service, a five star grading would also be possible." 

The Minister added that land is a scarce commodity and unless one encroached in land out side development zones, which was certainly not desirable, "we would be losing out on investment, of the opportunity to attract world renown hotel chains and improving our accommodation product further. What is good for an international hotel chain must be good for Malta and for Maltese tourism."

The Minister highlighted that the Manual accorded management a means of self assessment and was in itself a guide for management and staff to check and understand what services each category of accommodation establishment should provide.

"This Manual was not lifted from text books or copied whole scale from those obtaining in other destinations. Its foundation is based on current policy parameters enhanced by the experience of our consultants, knowledge of local conditions as well as the pilot inspection visits which have been made recently to 32 properties in Malta and Gozo."

The Minister then spoke of the number of beds that are coming on stream following the approval in recent years of a number of new projects. "I remember the criticism levelled years ago on the policy restricting development to five star properties. Today even former critics accept that without sufficient five star beds we would have lost out on the conference and incentive market !"

Minister Refalo said that it was not up to government to nurse maid entrepreneurs and intervene to stop investment. Government's remit was to ensure that tourism policy was complied with and that the Planning Authority ensure that the dictates of planning regulations and considerations were adhered to.

"From our vantage point we can see the big picture better than individual investors. We can see that a surfeit is being reached in some categories. That in others we have too many tired properties. We can also identify empty niches as well as the need for a different type of establishment to fill the vacuum and satisfy the demands of traditional and new markets."

"We have submitted proposals urging the Planning Authority to facilitate hotel owners' applications for changes of use. There are some establishments which, even given the best of incentives and encouragement, will not be able to make the grade. Changes in use, making better and more profitable use of a property, should therefore be encouraged."

"We are ready to share this knowledge with whoever is interested; trade bodies, prospective investors, financiers, bankers and any one else. It is then up to the investor, the banker, the consortium to make their respective decisions."

The Minister said that while the accommodation profile had changed, showing an increase of four and five star beds and a decrease in the lower categories, one had to keep in mind that the majority of hotels which had come on stream were built on sites previously occupied by operating properties. "In actual fact the increase in bed stock during the last ten years is not as dramatic as some make it out to be."

The Minister added that it was government's intention to improve the level of accommodation all round and therefore new and as yet not approved projects would be regulated by a different set of guidelines. These should be completed and become operative by January 2001. The guidelines will be more stringent and it is anticipated that room sizes and the ratio of beds to common areas and facilities will reflect current international hotel trends. More stringent conditions and larger spatial requirements will ensure that only the best properties come on stream. This in itself should produce a slow down in the hotel building tempo.

"I have lost count of the number of projects which are currently being processed by the Planning Authority. My objective today is not to tell you of the difficulties which promoters and investors encounter when dealing with the Authority but to thank PA Chairman Mr. Chris Falzon and the members of the PA and Planning Directorate delegation that two weeks ago met Ministry, HCEB and MTA officials to thrash out an agreement on processing guidelines for tourism and tourism related projects."

"I thank them publicly for their understanding and their cooperation so that a mutually acceptable consensus was reached. This, in essence safeguards the independence and policies of both Tourism and the Planning Authority. Furthermore it provides for regular, structured consultation, and also, in cases where Tourism and the Planning Directorate find themselves in disagreement, provides for joint presentation of projects to the Planning Authority Board."

The Minister concluded by saying that the day's event and the presentation of the manual to the trade clearly showed that the Malta Tourism Authority was on track and was delivering. "I look forward to the day when all Directorates will be functioning and all staff in place so that the trade will receive the full benefit of an Authority moving ahead at full throttle."