Issue link: https://maltatoday.uberflip.com/i/337883
maltatoday, SUNDAY, 29 JUNE 2014 Opinion Michael Falzon 24 T he recent call by the Malta Hotels and Restaurants Association (MHRA) to explore a new vision for our tourist industry that takes into account Malta's maximum tourist carrying capacit y should not go unheeded - but it should not have come from the MHRA. But then the term of the board of the Malta Tourism Authorit y (MTA) has elapsed and a new one is still to be appointed! Tourism planning is the prerogative of the government, after due consultations with all stake holders; for it is the government that must somehow reconcile the country's conf licting national physical, environmental and social limitations, not to mention the conf licting interests within the tourism industry itself. Since the late seventies Malta's dependence on the tourist industry was such that a crisis in the industry was a national crisis. The tourist industry itself depended for 70% of its custom on the UK market, which was dominated by British tour operators. There was practically a crisis every time the Spanish devalued their peseta. Malta, with no financial services or gaming sectors to rely on, had to go the difficult road of subsidies and introduced the forward buying rate for sterling, which was actually an ad hoc devaluation limited to the tourist industry. Malta had no choice and for many years this subsidy dominated tourism policy. This lasted well into the early 2000s when it was made clear to Malta by the EU that such state aid was not permissible under its rules. Luckily the first well researched tourism planning documents produced for Malta by the MTA, or its predecessors, were at hand. These were the Horwarth and Horwarth and the PA Cambridge reports. Incidentally, the Horwarth and Horwarth report was used extensively in the compilation of the supporting documents of Malta's first Structure Plan in 1991. These reports were instrumental in pushing Malta away from subsidised mass tourism into niche markets and diversification into the continental markets. They recognised the social limitations of tourism, and tried to set a limit to the volumes of tourists attracted in summer. Subsidies were gradually phased out over some three years and half the massive savings made were invested in marketing, mainly TV advertising in the UK and stronger marketing on continental Europe. For two consecutive years our tourist industry achieved a volume of more than one million tourists without subsides. As luck would have it, our tourism industry was faced with another crisis in the mid 2000s. This time it was practically all of our own making. In the mid 2000s, the MTA went through a lengthy restructuring exercise that, among other things, led to several changes of chairmen and CEOs over a period of two years and disrupted its marketing activities. The MHRA played a prominent part in this turmoil, during which it was evident to seasoned observers that the people who were calling the shots were not accustomed to operate at the macro level in which they found themselves. This led to a series of blunders that threw the tourist sector into a free fall: television advertising in the UK was called off and instead the MTA advertised considerably on CNN, foolishly contracted an expensive Swede to ' brand ' Malta's image and squandered money subsidising speedboat races and events like Isle of MTV. Worst of all, the MTA decided to 'invest' by closing most of its offices and representations abroad only to find out, after two years, that it could not do without them… It then had to spend more money to reopen them. The real cost of this mess remains unknown, for this meant that the MTA did not market Malta abroad properly for three years. All this upheaval coincided with the emergence of low cost A new strategy for our tourism industry Receive €1,000 in training grants! Do you wish to improve your employment prospects, your career and job mobility? If so, do not miss this opportunity to expand your knowledge and improve your skills through off-the-job accredited training of your choice. More information is available on our website www.etc.gov.mt (check Training Opportunities under the Jobseekers & Employees section). Alternatively you may reach us by phone on 2220 1609 or by email on mario.a.magri@gov.mt. This initiative – Training Subsidy Scheme – is part of the EU co-funded project ESF 2.201 Enhancing Employability through Training. A subsidy of up to €1,000 is being made available to help you achieve your goal! PARLIAMENTARY SECRETARIAT FOR THE EU PRESIDENCY 2017 AND EU FUNDS Operational Programme II – Cohesion Policy 2007-2013 Empowering People for More Jobs and a Better Quality of Life Project part-financed by the European Union European Social Fund (ESF) Co-financing rate: 85% EU Funds, 15% National Funds Investing in your future