Operators in the tourism sectors are looking at the business scenario in the sector with ‘great trepidation and concern’.
Significantly, the operators are concerned for the sustainability of the tourism industry, claiming that ‘permits for new hotels are being given without the real understanding of the potential outcome of this increase in room supply and the impact on the viability of these operations’.
Five-star hotels in Malta were experiencing a significant downturn in business in the first two quarters of 2019. The shortfall is being registered primarily from the Meetings, Incentives, Conferences and Events sector (MICE) and also from DMCs ‘who are not registering the usual pace of requests for group business.
There is acknowledgement that the sector has experienced five years of year-on-year growth, which was fuelled by the effects of the EU Presidency, amongst others.
The sector also noted that while in the last eight years or so, Malta’s primary competitors, Greece, Egypt, Tunisia and Turkey have registered a significant downturn due to the geopolitical scenarios, ‘in 2019 there was a significant resurgence of these destinations’ based on a combination of calming of their internal situations and significant marketing efforts on behalf of the destinations and lower rate base.
It is understood that operators are urging the Government to take actions which tackle the short-term downturn and develop ‘a much needed long term action plan which addresses the industries’ positioning, and which requires MTA’s support.
Sources in the industry are urging the government to take short-term measures, such as digital campaigns to develop the MICE and Transient segments, proper action to control the unregistered and unlicensed Private Accommodation, substantial improvement of Malta’s cleanliness and explore new markets.
From a long term perspective, a long-term branding programme and campaign promotion Malta and redefining Malta’s product offering is required.
The operators are concerned that while the economy must continue to grow, it is not necessarily happening in a sensible and managed manner. This is crucial not to have a negative outcome in the longer term”, operators said.
Industry operators highlighted the need for a clear vision and purpose whereby any new development in the sector is funnelled through as the holistic approach and product offering and the experience on many levels is lacking.
Corporate Dispatch
