KEYNOTE SPEECH BY THE HON. MICHAEL REFALO, MINISTER FOR TOURISM, TO MALTA HOTELS AND RESTAURANTS ASSOCIATION'S ANNUAL DINNER ? 14TH DECEMBER, 2000

Mr. President, Mrs. Chircop, Hon. Colleagues, Dr Gonzi and Mr. Vella, Mrs. Gonzi and Mrs. Vella, Distinguised Guests, Ladies and Gentlemen.

I speak to you tonight on an occasion normally reserved for the Prime Minister. It is certainly my honour and privilege to have been asked by Dr. Fenech Adami to deputise for him. It is however an honour and privilege which, in view of prevailing circumstances, I could well have done without.

The good news is that Dr. Fenech Adami has made an excellent recovery. He has already returned to most of his duties and, I am certain, that very soon, fortified by his absolute faith in the abilities and potential of the Maltese people, he will be back in full harness and continue to lead the country with renewed vigour.

It is my pleasant duty Mr. President, firstly that, on behalf of your guests, my wife and I to thank MHRA, for giving us all a wonderful occasion to meet and enjoy ourselves in a most congenial atmosphere.

Secondly, I wish to reiterate my personal thanks and appreciation to MHRA for engaging in a healthy ongoing dialogue throughout the year and being such a most dependable sounding board. My thanks also go, on an individual basis, to a number of your officials and members for their contribution to the industry during this year.

Allow me therefore to personally thank your immediate past president Joe Preca, his predecessor Winston Zahra, former president Ian Decesare, and many others among whom Victor Borg, George Micallef and you, Mr. President, for the work and effort which you have given in support of MTA during this past year of formative experiences.

Nomination to either the Authority's main Board, or the Chairmanship and membership of its Directorates is not similar to membership of some academic talking shop, another diary entry for fortnightly or monthly social meetings. In this day and age membership to national bodies has become a full time occupation which often demands the presence of body and mind on a twenty four hour basis.

I am very conscious that MHRA's representatives on MTA as well as those hoteliers, who serve as my personal nominees, have their own businesses and enterprises to manage. I cannot therefore in all fairness, expect them to give up too much of their time for so long. I have therefore chosen to opt for a system, very similar to the rotation of officials as applied by MHRA, namely to retain a measure of continuity while giving others a breather to enable them to concentrate on their own business interests.

Moreover, in a small country such as ours, where even smaller minds often misconstrue board membership as a means of giving "friends" an edge over their business competitors, I believe that it is best to demonstrate very clearly that this is not so and that membership of MTA's Board and directorates actually means giving up one's time for the general interest, and working for others and not just for oneself.

I therefore wish to make it clear that the changes which 2001 will see among my nominees to the MTA Board and Directorates have been prompted solely by these considerations.

Working closely with MHRA, as I have done during these past two years, I am encouraged by the changes which I see happening so regularly within the hotel owning and managing community. This spirit of working together in the common interest has been most prevalent during this Millennium year.

Following the joint promotion and organisation of Millennium festivities by a number of hoteliers, grouped together under the name of Sliema Creek hotels, I was pleased to join in activities organised by the Sliema Three Star Club, which later on in the year, went one better, and promoted a common offer during World Travel Market.

But perhaps it is now, in these last few days, that we have witnessed and are living through the best testimony of this new spirit of togetherness, joint action in support of mutual interest. I refer to the attempts made by Frosch Touristik, (FTI) to review contracts and scale down, en masse, rates agreed just a few months ago.

FTI's thrust backed by Airtours muscle, to reduce rates, Ladies and Gentlemen, reflects the negative side of globalisation. The positive side is MHRA's understanding and individual hoteliers' realisation, that separate, isolated efforts are a recipe for capitulation to demands justified solely by the prevailing situation at FTI.

Being part of the Airtours Group, which currently delivers around 15% of our visitors, I believe that it is in Malta's best interests to see that Airtours and FTI continue to support Malta's tourism and also that Malta continues to work closely with FTI and the Airtours Group.

However, everyone must understand that there are limits to everything. We cannot compromise principle. We cannot commit ourselves to what we cannot afford. And we can go along with our partners' wishes only as far as good business sense allows us to go, but no further.

That the hotel industry speaks with one voice, does not allow suppliers to play one against the other, the understanding that one off rate reductions would, at best, have marginal value solely of a temporary nature, are extremely positive developments.

Moreover, that MHRA has tabled a counter offer designed to further promote Malta in Germany through FTI, coupled with some additional MTA funding to achieve further exposure and publicity for Malta's offer on a 50 / 50 basis with FTI, proves that Malta wants to maintain true partnership status with FTI. However, when a partnership develops into a fight for supremacy it is a partnership no longer.

Tourism is all about the seeking of active, willing partners, prepared to work together in the common interest. Most certainly in Tourism, and very prominently in MTA, Government has tangibly shown its desire and interest to work closely with the private sector.

New measures introduced in the budget, such as increased long term financing for MTA, the call to the industry to participate in Public Private Partnerships, and the launching of Private Finance Initiatives for public ownership projects with direct relevance and benefit to private sector tourism interests, clearly underline Government's strategy to strengthen the bonds of a partnership which has delivered excellent returns.

There is however another side to the public / private partnership on tourism interests, namely, the effort and investment which government makes towards improving the environment, services, utilities, sports and cultural facilities, as well as new projects which upgrade the quality of Maltese life and therefore of the overall offer we make to our many welcome visitors.

More often than not it is the fault of government that it regularly fails to mention that the tourism industry is enhanced by programmes and initiatives which are traditionally not considered an integral part of tourism infrastructure and which impact on the country as a whole.

As, distinct from other destinations, the smallness of our land area makes all aspects of Malta and Gozo determining facets of our tourism offer. Briefly, I will highlight some initiatives, which government will be driving in Fiscal 2001.

I will begin with the most obvious: Roads, Government will this year spend Lm8 million in the construction, repair and maintenance of arterial roads. Specifically these include roadworks between Salina and Iklin, the surrounds and access to Mellieha, upgrading the Paceville Junction and the road from Sliema to Bugibba. A further Lm2 Million plus has been allocated to Local Councils for urban road maintenance.

The Transport and Communications Ministry is also charged with developing Cirkewwa into an all weather harbour and ensure uninterrupted maritime links between Malta and Gozo.

2001 should see the Manoel Island/Tigne' Point and Cottonera developments proceed in earnest. The Valletta Cruise Terminal contract will be submitted to the House within the next few weeks. Work on the entrance to Valletta, the development of the Opera House site and the commencement of works on a new central bus terminus is also planned for 2001.

However, tourism operators' attention is currently more focussed on environmental issues and strategies. This is the industry's greatest worry. You are certainly aware that contract proposals for the development and operation were published earlier this month. This Lm400 million project should ultimately see the end of Maghtab and other eyesores.

The Ministry for the Environment will undertake embellishment projects at B'Bugia, Marsascala, Marsaxlokk and Sliema. I am informed that Land Department tenders for the Chalet development and additional parking facilities in Sliema will be issued tomorrow, while designs for the restructuring of the St. Julians promenade have reached an advanced stage.

The Ministry of Education and Culture has this year been allocated more than half a million liri for the conservation of historical sites and museums while the Ministry for the Environment, through Rehabilitation Committees for Valletta, Cottonera and Imdina, will continue with the restoration of historic buildings and monuments.

I will not elaborate on the additional investment which is being ploughed in to ensure better water and power generation and supply, on the upgrading of the telecommunications system, but I must applaud the long awaited initiative to remove unsightly wiring from Imdina and Valletta.

Finally a word about 2001 and beyond. Every year has its own story. The trade is very conscious that 2000 has not been an easy year. Those who thought that globalisation was something that happened elsewhere have finally been jolted into action. They have realised and understood that unless we equip ourselves and are prepared to take on the competition, and that does not mean reducing rates, the future of Malta and Gozo as holiday destinations is not all that rosy.

This does not imply that we will be erased from the tourism map, but unless we harness all our abilities and effort we will find ourselves sidelined and relegated to the role of spectators destined to watch others play and capture the prize.

2001 could be even more difficult. We are in the throes of a very necessary restructuring, re-positioning and re-focussing process. The international scenario changes daily. This calls for extra effort by all tourism's players and for the strengthening of another invaluable partnership: that between the trade and all Maltese and Gozitans.

It is not enough that 99% of the population is conscious of tourism's importance for Malta; that it contributes to everyone's livelihood. Just paying lip service to a platitude gets us nowhere. I therefore call upon everyone to put effort and money where their mouth is and to translate this inner belief into tangible overt action.

2001 calls for a national effort. Government must do its part, the trade must do its part and both expect that all Maltese and Gozitans, individually and collectively, should stand up and be counted in support of an industry that benefits all.

I thank you for your attention and I wish you all happiness for Christmas and a most prosperous New Year.