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MT 29 September 2013

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13 Interview maltatoday, SUNDAY, 29 SEPTEMBER 2013 MHRA President Tony Zahra would like to live in a country where politicians try to outdo each other in 'doing what is best for the tourist industry'. But is there a risk that in doing so, politicians will forget other social and environmental priorities? Labour? million people a month in the space we have. We should reach a level which we can maintain safely from the facilities point of view." He also warns against increasing the share of tourism in the Maltese economy. "Tourism already represents 30% of the Maltese economy and 35% of government income. If we take it further, there is a risk of overdependence on tourism, which could backfire if something goes wrong with tourism… A single terrorist attack is enough to shake up the industry." He is also sceptical about boutique hotels. "All these things are very nice at face value, but the cost of running a 50-room hotel is considerable. You might end spending the same amount as you would running a larger hotel, while getting less revenue." The latest NSO figures show a remarkable 3.8% increase in tourist arrivals and a 3.6% increase in the number of nights in July. Can the tourist industry continue to grow at this rate? In March, Zahra had already foreseen that we were going to have a "perfect summer". "We are on target to have an extra 100,000 tourist arrivals this year. We are confident that 2013 will be another record year." But he warns that this should be no excuse for complacency. "The tourist industry at this moment is recovering from the effects of the 2008 global financial crisis. In 2009 we experienced an unprecedented dip in revenue. It is only now that we are recovering to 2008 levels in terms of income, but our costs are much higher." Zahra insists that the tourist industry needs three things to become sustainable: an increase of tourism in shoulder months, a decrease in utility bills and a decrease in VAT from 7% to 5%. Zahra is quite optimistic that even 2014 will be another record year, with another increase of 50,000 tourists. But what is certain is that most of the increases are still taking place during the summer season. "What we need now is to concentrate on the winter and shoulder months. My dream is to have 160,000 tourists arriving during every single month of the year." The way forward is to create more activities which attract tourists throughout the year. He points out that the organisation of operas in Gozo attracts 800 German tourists. "We need to organise an activity every week, targeted at different niche markets to bring in more tourists." One issue which has a direct impact on tourism is the still-unsatisfactory public transport service. Zahra speaks of an ongoing dialogue with Arriva to improve the service but is disappointed by the constant changes in Arriva's management structures, which means that discussions always have to start from scratch with the appointment of every new general manager. He also reiterates his opposition to the discriminatory tariffs, through which tourists (even EU citizens) have to pay significantly more than locals. On his conversations with former transport minister Austin Gatt, Zahra says that he's being "very diplomatic" in recalling how Gatt "did not take our criticism kindly". In fact, Gatt is clearly not in Zahra's good books. "When we were calling on the government to allow low-cost airlines to operate, he used to call the MHRA the 'low-cost at any cost brigade'. This is the same minister who is now retired and does not want to comment anymore, the same minister who used to call us stupid and idiots…" Zahra now feels vindicated, arguing that without low-cost airlines "the tourist industry would be finished". The MHRA has lately expressed concern about the proliferation of unlicensed restaurants in the countryside, such as those organising majjalati. "This is clearly an uneven playing field. People who do not follow the law do not have to abide by regulations, which come at a cost for legal operators. Today, the very compliant cost lots of money. Therefore those who are non-compliant enjoy an advantage over others." Illegal hunting blots Malta's international reputation. Isn't the MHRA concerned? On this issue, Zahra is once again very diplomatic, referring to the hunting phenomenon as very "divisive". "We have a situation where hunters are saying that too much of a fuss is being created by the anti-hunting lobby and it is this which is creating the problem, while those against hunting argue that it is illegal hunting which harms Malta's reputation. We are trying to encourage both sides to talk to each other. We are part of that dialogue and our aim is to stop the illegalities." Zahra's ultimate goal is to turn tourism in to a non-political issue. "We should simply be concerned with which of the two parties can do the best for our industry." He makes it a point to dispel the perception that the MHRA is close to any political party. "We are not chummy with anybody, we like to say it as it is. I was very irked by this suggestion. We say it as it is, not as someone wants us to say it. My friend is the person who tells me I have a problem and not someone who comes up to me every morning to say 'Tony, you're a great guy'."

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