Issue link: https://maltatoday.uberflip.com/i/437144
maltatoday, SUNDAY, 21 DECEMBER 2014 News 9 MATTHEW AGIUS HOTELIER Michael Zammit Tabona is calling for heads to roll at the Malta Hotels and Restaurants Association, following its presi- dent's endorsement of the Corinthia Group's plans to prioritise upmarket tourism. "MHRA president Matthew Pace should vacate his post," Zammit Tabona said, "because he had ab- solutely no right to back the idea of targeting upmarket tourists without consulting his membership. He has to resign, and with him, whoever wrote his speech." Pace's comments were made at a speech at the Institute for Tourism Studies, where he heralded Corin- thia's plans for a six-star hotel to at- tract visitors from the more expen- sive, upmarket demographic. "He said that with the market numbers now in a region, Malta can start at- tracting new upmarket tourists," MHRA director-general Andrew Agius Muscat said. "Of course, not at the expense of core markets like the British holidaymaker." But Zammit Tabona firmly believes that the way forward is to build on the current tourism product and at- tack new markets, rather than re-ori- entating towards upmarket clients. He is convinced that the status quo as win-win. "Why fix it if it isn't broken?" he asks. "Had the MHRA president consulted his members in Sliema, St Paul's Bay, Bugibba or St George's Bay they would have asked him if he was going mad," added the Fortina Hotel and Spa owner. Not everyone agrees with this, however. In comments to MaltaToday, Eden Leisure Group chairman Ian de Ce- sare said he believes that it makes more sense for the local product to attract wealthier individuals than to increase numbers. "Critical mass has been reached in- sofar as numbers are concerned and the tried and tested formulae now need to be tweaked". De Cesare believes that there is a demand for a number of very high quality suites, which Malta currently lacks. "Numbers are always required: we have the largest five star hotel on the island, so I obviously don't advo- cate reducing the numbers of visi- tors, but we also need to increase the quality of our output to continue to attract the right type of visitor." The Eden Leisure chairman ex- plains that the InterContinental is aiming to satisfy demand for "high- end five star" (he doesn't like to use the term "six star") holiday accom- modation and ties this in with the Individual Investor Programme launched earlier this year. His view is shared by Corinthia Group chairman Alfred Pisani, who is on record stating he believes that targeting the luxury tourism market is the way forward now that the local tourism industry is doing well. Pisani claims that visitors' expecta- tions are now higher than in the past, a fact which, he says, must translate into hotel owners investing more in their properties. On their part, Corinthia are inves- tigating the feasibility of opening Malta's first six star hotel after 2016. "For Corinthia it would be a tremen- dous satisfaction that we should, following half a century from our inception, provide Malta with a unique hotel property of a quality superior to what we have seen up to now," Pisani says. "We will develop the most attrac- tive hotel and which will be serviced to optimum levels… Such a project requires time before actual work can start on site, in fact we do not expect construction to commence in the immediate future, for sure not before 2016." Ultra luxury is not the only area where investment is taking place, however. De Cesare points to his plans to open a Holiday Inn Express in 2016 to effectively cater for the three-star market. Not just 'bucket and spade brigade' But Zammit Tabona argues that six star hotels will only attract a tiny minority of millionaires who should not be targeted at the expense of the majority. "This is a bad idea… Not only would this have a negative knock-on effect on local tourism-related businesses who depend on volume, but rates for ultra-luxury hotels would eventually also have to be cut due to lack of de- mand and this could negatively affect rates across the board. "Malta is not London – we can't mix what we are selling in Malta with London. Travel to London is mostly corporate – business, popstar mil- lionaires, football clubs." "How would you define an upmar- ket tourist?" he asks, citing examples of footballers coming to Malta and expecting to stay for free. He insists that it has been tried before and failed. When it comes to family holidays, Zammit Tabona believes that value for money is the deciding factor. "Families of four-five persons com- ing to Malta on budget airlines for Christmas will definitely not want to spend €400 a night. "We have a winning formula that has given us growth over the past years. The country needs to continue expanding – we need to attract two million people a year. It's not just the hotel beds, it's the dependent indus- tries: bars, clubs, restaurants". The multimillionaire market tar- geted by 6-star resorts do not re- spond to conventional advertising, he adds. "In those circles advertising is done by word of mouth. When A-class celebrities come to Malta, they usu- ally rent out villas – Zammit Tabona cites Brad Pitt and Angelina Jolie as being cases in point. "Let's forget this upmarket non- sense. The market can afford the increase. Let's also forget that Malta is a downmarket destination for the bucket and spade brigade". He points out that rates in Malta are not the cheapest in the area: Tu- nisia, Spain, and the Canary Islands are cheaper. "It is now up to the MTA to ensure that we're chocker- locker full." Chinese market The status quo certainly appears to be working. According to a recent survey carried out by the MHRA, oc- cupancy levels had increased across the board by 3% and rates charged per room had improved by 7.5% on average in 2014. In a statement issued earlier this month, the association said 2014 had been a bumper year for the tourism sector and could even end up setting a record. Zammit Tabona claims the future lies in conquering new markets. "We are competing not only with Europe but the rest of the world. We are trying to crack the Chinese market, but we are losing ten nil in the first minute of the first half because of the lengthy visa process. It takes 15 days for a Chinese tour operator to apply for a Schengen visa," he explains. Zammit Tabona believes that the Chinese window of opportunity is closing and the government and the minister need to act fast to open up China. "Malta is currently being fea- tured in a large number of Chinese tour operators brochures, but be- cause of the visa situation, they are starting to prefer to go to countries FOUR environmental NGOs have signed an open letter to the Prime Minister, proposing a new nature park in the south of Malta as an alternative to the controversial 'Buġibba in the South' develop- ment. BirdLife Malta, Din l-Art Ħelwa, Flimkien għal Ambjent Aħjar and Nature Trust are urging Joseph Muscat to declare the public land between Smart City and Żonqor Point as a protected nature and her- itage park for the benefit of the en- vironment and people alike. Reacting to the proposals for three large hotels in the area, which is an outside development zone, the NGOs say they fear the develop- ment would create "an unsustaina- ble precedent for the ongoing devel- opment of undeveloped countryside in the area which would devastate the local environment and ruin its traditional character". The NGOs tell Muscat in their let- ter that prior to the 2013 election, he had expressed agreement with the idea of establishing a nature park in the south. "If taken up as a private public partnership, this project will bring a long-term boost to the economy, and improve social and environ- mental aspects in this part of the island," the NGOs said. The letter states that declaring this pristine stretch of coast and countryside as a nature park not only safeguards the site from devel- opment, but will enhance the qual- ity of life for local communities and provide opportunities for employ- ment in ecotourism, calling it "a win-win situation for the country". The plan recommends improve- ments for public access and edu- cation, such as a heritage trail and refurbishment of Fort San Leonard as a visitor centre, and also suggests renovating disused buildings as eco- tourism destinations. "We would propose that a pro- tected nature and heritage park in the south would save the region from the dense development of the north and do much to increase our island's reputation as a tourist des- tination. "Employment opportunities can also be created by the establishment of protected open public space and coasts, now so scarce in Malta, as well as the re-utilisation and up- grading of existing buildings and valorisation of heritage sites. This would be much more sustainable and also reflect the distinct charac- ter of the area, which would attract high-value eco and cultural tourism, boosting economic feasibility. "Such creative ventures make higher contribution to the quality of life and well-being of local commu- nities and their visitors." NGOs propose nature park for 'Bugibba in the South' Hold your horses on upmarket tourists, says Fortina owner Michael Zammit Tabona (seated) having a light moment Alfred Pisani 'We can't mix what we are selling in Malta with London – business, popstar millionaires, football clubs' –Michael Zammit Tabona