SOL MELIA TO OPERATE SUNCREST HOTEL

Minister for Tourism Michael Refalo concluded the Sol Melia - Suncrest press conference and congratulated both companies' managements for striking a deal which was "good for them and also good for Malta".

The Suncrest is the third hotel in Malta to fly the Sol Melia flag. Minister Refalo remarked that this substantial involvement by Spain's leading hotel company inthe Malta scene would also draw Sol Melia's international partners in the tour operating fieldcloser to the Maltese Islands.

"I see Sol Melia's strong presence in Malta, and that of other major European and global chains, as a very clear, positive signal and an eloquent vote of confidence in Malta's tourism industry. A vote of confidence in our performance to date, as well as a vote of confidence in our prospects for the future".

The Minister added that "International chains like Sol Melia do not commit time, money and effort unless convinced that they have a good chance of making a good return on their investment. In simple terms Sol Melia is telling us that our tourism is doing well today, has a great future ahead of it and that Sol Melia wants to be part of it of that future too."

The Minister said that Malta's prospects would indeed be rosier if Sol Melia,who have a substantial interest in one of Spain'smajor tour operating companies, would assist Malta penetrate and attract more traffic from the Iberian Peninsula, especially through new air linksparallel to those already operated by Air Malta.

The Minister went on to say that results for April had just been announced. "Those who only look at volume and arrival statistics may think that we are not doing as well as last year. Those who know something about tourism and are in the trade know that Malta is doing better now than this time last year, and consider these results as extremely positive.

• Firstly, because tourism flows from alternative source markets has nearly made up for the forecast shortfall from Germany.

• Secondly, because despite a slightly lower volume in arrivals, guest nights have increased by more than 7%.

• Thirdly because visitors' length of stay has increased from just over 8 in 2000 to an average of nearly 9 days in 2001.

• Fourthly because during the firstquarter of 2001 hotels and other accommodation establishments have, with minor exceptions, increased occupancy levels appreciably, and in some categories substantially.

• Finally, and I would say most importantly, because MHRA says that this year hotels in all categories have improved their Achieved Average Room Rate when compared to their 2000 out turn.

The Minister said that he was quite confident that results for May would also be welcome, while those for June should reflect an upsurge in incentive and conference business.

MinisterRefalo thanked all tourism sector employees, investors and entrepreneurs, and all who placed their faithand expertise in the industry, as well as those who earned their living from and through tourism, for being very instrumental in posting such excellent results in a year which was not easy to manage.