SPEECH BY THE HONOURABLE EDWARD FENECH-ADAMI, PRIME MINISTER, AT THE OFFICIAL INAUGURATION OF THE GRAND HOTEL MERCURE CORALIA SAN ANTONIO. FRIDAY 15 FEBRUARY 2002

I was extremely pleased to accept the invitation extended to me by the Directors of the Grand Hotel Mercure Coralia San Antonio to inaugurate this hotel. Today is yet another important milestone in the private sector’s initiatives to promote Malta’s tourism industry. Today’s event is also a positive reflection of the success that my Government’s policies have had in strengthening such a vital part of Malta’s economy.

I was indeed pleased to read that although the Grand Hotel Mercure Coralia San Antonio has only been on the market for the past few months, the hotel has regularly achieved a 60% occupancy level, this despite recessionary conditions in some of our main source markets and a general world wide slowdown in tourism, made worse by the 11^th September terrorist attack on America.

Attaining a 60% occupancy level, especially during the low season months of January and February, is indeed a notable achievement. This is a tangible and most encouraging result and a credit to your marketing team. It is also an endorsement of my Minister’s views about the industry’s resilience and his cautiously optimistic remarks about the recovery of tourism and the industry’s expected performance for the rest of this year.

The Grand Hotel Mercure Coralia San Antonio is moreover, a very visible confirmation of the trade’s support for a government policy which favours a controlled tourism development strategy, and the upgrading and refurbishment of existing hotels, rather than the building of new properties. I have closely followed the development of this hotel and I congratulate the owners, Alpine Holdings and the Seabank Group, their architects and designers, as well as everyone who has contributed to the work and planning, for giving the industry a brand new hotel with all the modern, state of the art amenities and facilities on the site of a previous property.

I am further heartened by the hotel management partnership venture between Air Malta and Group Accor, which already operates hotels and a casino in Malta, and no less by Accor’s continued interest in Malta’s tourism industry. The news that Accor, the third largest hotel group in the world, intends to strengthen its participation portfolio in Malta’s tourism and will introduce its renowned Sofitel brand in 2003 when it takes over the management of a five star property, is indeed most encouraging. This is a further sign that Malta has achieved lasting international recognition and is considered a worthwhile proposition for investment in the leisure industry.

I see Accor’s commitment to Malta, as that of other leading European and US brands which presently manage or own Maltese hotel properties, as a clear signal that the international leisure community sees bright prospects for the future of our tourism industry. These prospects will be greatly enhanced through Malta’s membership of the European Union and I am glad to see that the vast majority of Maltese tourism operators and workers within the industry are of the same opinion.

Our industry is well organised, our managers experienced, our work force well trained and they are moreover overtly keen to grasp the great opportunities that lie ahead of them to compete and win in a larger European market place and attain bigger and better achievements which their endeavours deservedly merit.

I wish the Grand Hotel Mercure Coralia San Antonio, its owners and its operators the best of luck in their endeavours to promote their property and tourism to Malta. I have no doubt your investment will be justly rewarded.