SPEECH DELIVERED BY THE HON GIOVANNA DEBONO, MINISTER FOR GOZO, ON 'THE GOZO TOURISM INDUSTRY' AT THE MALTA TOURISM AUTHORITY SEMINAR "SUCCESS THROUGH SYNERGY: AN INTERIM EVALUATION OF MTA'S PROGRAMMES".

I should like to congratulate the Malta Tourism Authority for organising today's meeting. The objective of the meeting is indeed praiseworthy. We are living in an era which is presenting stimulating challenges to the social and economic arrangements we live in. A lot of effort has and is being directed to ensure that the primary and secondary sectors of the domestic economy undergo the necessary alterations to ensure success in an age dominated by such phenomena as globalisation and the emergence of the new economy. Indeed it is very encouraging to note how both private and public sector institutions are devoting a lot of attention towards the policy measures which are necessary to put our agricultural, fisheries and manufacturing sectors on a more sustainable platform. At the same time, however, we must be very careful to nourish, sustain and support what has gradually emerged as a very significant pillar for economic activity in Gozo. I am obviously referring to the tourism industry. As the topic chosen by the Malta Tourism Authority implies, success in the tourism industry is heavily dependent upon the extent to which all interested parties co-operate with each other. If interested parties, constituted bodies and private sector initiative co-operate with each other, the necessary momentum to lease new life into Gozo's ambitions in this critical area of economic activity can be generated.

The Tourism Industry- A Success Story

Since Malta achieved its independence, the Maltese and Gozitan people have managed to establish a very conspicuous tourism industry. Important infrastructural works were undertaken by both the public sector and private sector initiative. Good-quality holiday resorts, hotels and other critical tourism industry amenities were and still are being constructed. Huge investment outlays have been undertaken by Maltese and Gozitan entrepreneurs who have the vision, foresight and drive to push the industry forward. Human resources are gradually but consistently achieving higher standards in the hospitality and leisure industry. On its part, government has extended assistance schemes to support the tourism industry. Specialised constituted bodies have been set up outside the government bureaucracy to provide flexible yet timely assistance to the tourism industry. At the same time, private sector initiative has set up its own constituted groups which do not only serve as pressure groups for the advancement of the industry's prospects, but also act constructively to complement government's efforts. The Gozo Tourism Association is a vivid example of this.

The results of similar high and sustained levels of activity and initiative are encouraging indeed. The number of employees in direct employment within the tourism industry has increased significantly, while a less visible but equally important number of persons depend indirectly on the tourism industry for their livelihood. Estimates of the industry's contribution to aggregate economic activity on the Maltese islands are impressive indeed. Statistical estimates derived according to widely acceptable, scientific methods are harder to come across for Gozo. However, even the most casual observation of the Gozitan scenario would indicate that the dependence of the Gozitan economy upon the tourism industry is significant. A good proportion of Gozitan people earn a living either directly or indirectly from the tourism industry. Entrepreneurs have injected significant financial resources towards the development of the necessary infrastructure for the hospitality industry to thrive on the smaller island. This has been particularly evident during the past few years, with the completion of some fine hotels on our island. At the same time, a host of commercial organisations providing support services has mushroomed on our island. In fact, a number of persons are employed in these organisations to provide incoming tourists with catering, entertainment, transport and other ancillary services.

The Peculiarities of the Gozitan Tourism Industry

Though it is very hard to reject the notion that there are similarities between the industry's profile in Malta and Gozo, we would not be meeting our obligations towards the smaller sister island if we do not differentiate the Gozo tourism industry from that prevailing on the main island. I will not dwell upon these differences which distinguish the industry on the two islands, since this goes beyond the scope of today's meeting. However it suffices to highlight Gozo tourism industry's dependence upon internal tourism and the apparently more fragmented structure of hospitality services providers in Gozo. Other inherent differences between the two islands make it possible and advisable to differentiate the respective tourism products which the two main islands are equipped to provide. Thus, the double insularity phenomenon which makes Gozo less accessible to foreign tourists and the visible differences in intensity of rural development between Malta and Gozo can differentiate the Gozo tourism product from that offered on the main island. It is thus logical and very desirable to develop separate tourism packages for the islands of Malta and Gozo.

I am sure these remarks are widely appreciated by everybody. Once again allow me to stress the need that we exploit these inherent differences between the two islands. To elaborate on the more conspicuous Gozo specificities, it becomes imperative to develop further Gozo's emerging strengths in the internal tourism market. In fact I believe we should work together to further enhance Gozo's potential in this specific area of activity. In addition, ad hoc measures to encourage the significant number of Gozitans living in foreign countries to visit their birth place would benefit our islands. It is reasonable to expect that Gozo becomes a significant beneficiary of a similar policy, specifically in view of the relatively higher emigration rates registered by our island during past years.

My Ministry is also very keen to strengthen the co-operative links established during the past few years with the Malta Tourism Authority such that the tourism industry in Gozo may follow a strategic plan which has been specifically developed for the smaller island. And a separate strategic objective calls for its own distinct set of competencies, of human and financial resources and of infrastructural requisites. A stock-taking exercise of Gozo's inherent strengths and weaknesses, coupled with a clear assessment of the opportunities and threats which emanate from the wider environment both Malta and Gozo operate within should underpin a similar exercise.

Allow me to stress that a similar vision for the future development of the Gozitan tourism industry should at the same time be embedded in the wider strategy laid down for the tourism industry in the Maltese islands. Gozo is a distinct tourist destination which can have specific appeal to a distinct target market segment. At the same time, the Gozitan tourism product should complement that offered on the main island, since our island gives Malta an additional dimension.

We are grateful towards the Malta Tourism Authority for endorsing this vision for the Gozitan tourism industry. It is with a great sense of satisfaction that we note how Gozo features prominently in the Malta Tourism Authority strategic documents. In fact, the Authority's Strategic Plan document for the period 2000-2001 confirms that one of the key programmes for the Authority is the completion of a research work on Gozo as a tourist destination. Other critical initiatives which must be singled out in the context of a discussion on the Gozitan tourism industry relates to the need to disseminate information on the impact which Malta's eventual accession as a full member to the European Union is likely to have on the tourism industry. The proposed setting up of customer care desks and of tourist information offices in key tourist areas in Gozo is also deemed to be of critical importance by both the Malta Tourism Authority and my Ministry. Furthermore, the Marketing and Promotion Directorate within the Authority has specified that the review of current marketing strategy for Gozo is to be undertaken and completed. We understand a similar review is to include the determination of the ideal target market segment and the marketing mix for main source markets. The potential for a more intensive use of e-marketing for Gozo tourism facilities is understood to be explored.

Allow me to refer to another key initiative identified by the marketing and promotion division of the authority. I believe that the establishment of an official framework for partnership with stakeholders in air and sea links is of strategic importance to the further development of Gozo as a tourist destination. At the same time I would like to encourage the Authority to explore further the possibility of including, together with other stakeholders identified in the document, the corporate entities which are currently offering sea and air link services between the two islands.

The Agenda for the Gozo Tourism Industry

My Ministry cannot but encourage the Malta Tourism Authority in its efforts to establish a separate yet complementary marketing strategy for the tourism industry on the smaller island. Given the significant differentiating factors we already referred to above, it would be a strategic mistake not to. In this sense, my Ministry is confident that the efforts of the Malta Tourism Authority will generate beneficial results for all Gozo-based operators. The Gozitan economy must realise its full potential within the tourism sphere. As everyone knows, there are double insularity constraints which are exerting a negative pull upon the island's achievements within the primary and secondary sectors of the Gozitan economy. It thus becomes even more pressing that my Ministry, the Ministry for Tourism, the Malta Tourism Authority and the Gozo Tourism Association co-operate closely to realise fully the ambitious yet indispensable objectives identified in the Authority's strategic plan. I am confident today's conference will provide all of us with the opportunity to get a closer knowledge of the preliminary results coming out of the Authority's work in this area. The conference can also provide feedback about issues which may be rendering the execution of the strategic programmes problematic. May I highlight that the further development of the tourism industry in Gozo depends a lot upon the results of the work done by the Authority with the collaboration of private and public sector operators. Thus we have no option other than pushing ahead to achieve the targets identified in the strategic document of the Authority.

At the same time, may I emphasize that both the public sector and private operators need to respond in a timely fashion to the indications coming out of the Authority's market findings. I am sure all of us appreciate the need to adopt a pro-active approach towards shifts in market trends. Once we know our strong points, we can identify our optimal target market segment and mobilise the necessary financial, human, technological and infrastructural resources to achieve our common objectives. I strongly believe that if we focus our resources upon a specific set of market objectives, we stand a better chance of succeeding in our endeavour to realise the full potential of Gozo in the tourism area. And this is what I augur we get closer to achieve by the end of today's conference.