TOURISM MINISTER’S NEW YEAR’S EVE VISIT TO HOTELS AND MESSAGE TO THE INDUSTRY

• Minister calls for national effort in support of tourism.
• International tourism still in turmoil due to fear of flying.
• 11^th September impact assessed at 5% loss of total volume for 2001.
• Air seat capacity is the key.
• 2002 problematic but gradual revival forecast from March.
• Increased interest in group and conference business for Malta.
• Value added package launched to generate early booking demand.
• MTA contributions reduced.
• Extra Million liri to support MTA overseas campaigns.
• Trained staff a valuable asset.

Minister for Tourism Michael Refalo made his now traditional end of year call at three hotels where he exchanged greetings with staff and guests.

At every venue the Minister called for a national effort in support of the tourism industry. "Our economy depends on tourism’s success. Every one benefits from it. It is therefore in our interest that all of us should give tourism overwhelming support."

At the Four Star Seabank Hotel in Mellieha, the Minister said that international tourism was still in turmoil. 2001 will be an unforgettable year both because of the 11^th September terrorist attack on America, which has had such a damaging effect on the industry, and also because Malta’s tourism industry was responding well to the challenge. Minister Refalo revealed that the year till September had developed practically as forecast and increases in the UK, French, Italian and other markets, and a predicted November revival in Germany, meant that the target of matching 2000 volume had been on the cards.

As things turned out however fourth quarter losses due to the terrorist attack will mean a total volume downturn for the year of around 5%.

"Naturally such losses will adversely reflect on the level of foreign exchange earnings for Malta. Thankfully the impact on employment has been generally absorbed. The total number of guest nights should exceed 2000 levels but lower earnings mean less revenue for government."

Minister Refalo added that "2002 presents a very different scenario. Airlines, tour operators and the leisure industry as a whole will continue to contain costs and cut losses. Protecting bottom line interests will be their main objective for 2002. This means shedding unprofitable routes, cutting programmes and a reduction of air seat capacity, which for Malta, where 95% of visitors arrive by air, translates into a very tough uphill struggle."

According to the Minister although hotels in the Sliema and St Julians area should not fare badly, those in other areas could suffer. Forecast total out turn for the months of January and February is expected to be lower than in 2001.

"People are still afraid of flying. Airline accidents and highjack attempts make travelers understandably jittery. It is therefore immaterial whether a destination is considered safe and ideal for a relaxing and enjoyable holiday.

All things being equal and if there is no recurrence or threat of terrorist attacks, Malta’s tourism industry should gradually manage a return to normality from march onwards."

While Government, the Malta Tourism Authority, Air Malta, hoteliers and travel agents are making every effort to ensure a tourism revival during 2002, the Minister said that hotel and restaurant staff, transport personnel and those in the retail sector, as well as all who come into contact with visitors had a vital role to play.

"Maltese are known for their hospitality to visitors, for their helpfulness and welcome. Of course there are exceptions and it is only natural for one to have a bad day.

But then it costs nothing to smile, to be nice to people, to wish them an enjoyable holiday and inquire whether one could be of help. In 2002 nothing should be too much for us to do for our patrons and customers, Maltese and foreigners alike.

Satisfied customers are the best guarantee for your job security and future."

At the Five Star Corinthia San Gorg in St Julians where the tour included a visit to the hotel’s kitchens geared in the preparation of New Year’s Eve fare for hundreds of guests and revellers, the Minister dwelt mainly on the loss of lucrative conference, group and business traffic on which the Five Star sector had missed out during the last quarter of 2001 following the 11^th September events, and also spoke about prospects for the sector.

"Our findings at the moment are that compared to this time last year the number of inquiries for groups and conferences has increased considerably. What we need now is a parallel increase in the rate of conversions from inquiries to firm bookings.

Malta has tied up some good business for 2002 and 2003 but we have often lost out to continental venues easily accessible by road and rail. However many decisions are still in the melting pot and we could as easily be facing a bumper year as a poor year. Much depends upon whether group participants and organizers will opt for air travel or otherwise."

The Minister added that Malta must win this business not by offering lower room rates, which sometimes may reflect in lower standards, but "compete for business by providing better value for money, offering better service and seeing that our customers get what they pay for and also that little bit extra that makes all the difference."

The Minister said that the Tourism Ministry had been allocated with an extra million liri over and above the amount mentioned in the budget specifically to enable the Malta Tourism Authority intensify marketing and overseas promotional campaigns. The Ministry, through ITS, would also be offering free tuition and training to workers who had not had any previous opportunity to receive training.

"Well trained, professional staff are a hotel’s greatest asset. Shedding staff when business is low is never the best solution. Hoteliers should avail themselves of the opportunity to provide staff with in house training, while on the other hand staff should accept more flexibility in the performance of their normal or additional duties. This is a time when everyone has to pull the same rope and together."

"But our main priority remains that we offer an improved product. Government is investing heavily in those areas of infrastructure which need most attention. The general public also has a role to play. Everyone can help by keeping Malta clean and tidy. Tourism belongs to everyone because everyone benefits from tourism."

At the Three Star Carlton Hotel in Sliema, the Minister announced that later Legal Notice would be published today to reduce rates of some trade contributions to MTA.

"MTA needs the money and the objective was mainly to spread the load rather that forgo the Authority’s income. Thanks to information provided by trade organizations the contributor base has been widened. Travel agent contributions have been reduced across the board as those due by First and Second Class restaurants. Diving schools will also benefit from reductions while an administrative arrangement has been put in place to distinguish between bars whose earnings depend mostly on tourism and others that benefit to a lesser extent."

The Minister said that he was pleased to learn that hotel occupancy and business for New Year was better than for Christmas and praised Sliema’s Three Star hoteliers for coming together and organizing events for their guests.

"Our main objective for 2002 is to see that Malta enjoys a good summer season, which means a strong April to October. This all depends on air seat capacity as without the possibility of access to Malta and Gozo, no amount of money spent on promotion and marketing will deliver the business which the industry needs."

The Minister said that he had often advised the trade not to resort to price cutting which often translates into less service and comforts.

"Price cutting does not always benefit consumers. Some tour operators see lower prices as an opportunity to increase mark ups and not one to make packages more price competitive."

Although very far from the truth Minister Refalo revealed that he knew of instances in the UK and elsewhere where tour operators, keen to channel business to destinations where they had most exposure, had replied to inquiries about Malta holidays by saying that "Malta is full".

"That is precisely why the Malta Tourism Authority is targeting publicity direct to the consumer and has launched its Value Added Holiday Package to holiday makers who book their summer holiday during the month of January.

In this way consumers will benefit directly. The Value Added Package is worth 150 euros, equivalent to 90 pounds sterling, and includes gifts, tours and free entrance to most museums."

The Minister added that he believed that strong January bookings for summer would make operators think hard before deciding to include Malta in their programme and air seat capacity reduction exercise.

In conclusion the Minister said that although he was confident that the work done to see that 2002 would be a good year and that Malta’s tourism should deliver deserved rewards, he warned against complacency as "Success in 2002 depends mostly on everyone doing what one should do, every moment and every day."