Tourism Policy for the Maltese Islands 2007-2011

Ministry for Tourism and Culture

1 2 Tourism Policy for the Maltese Islands Following intense consultations with all euro €120 million euro are to be invested stakeholders in the tourism industry in in tourism. In its call for proposals for December 2006 Government published €180 million worth of projects under the National Tourism Policy and Plan Cohesion Policy 2007 – 2013, €80 that encompass our vision, strategy, goals million are earmarked for product and action for this important industry. development, niche market development In the pre-Budget 2008 document and branding. “Families Growing Stronger” in a whole The AMT launched its portal section dedicated to Tourism the aims VisitMalta.com which so far managed of this policy and plan are given in 11 to attract 1.5 million visitors. Media points: develop the tourism industry in a Consulta, one of Europe’s largest sustainable manner; preserve and develop marketing and advertising companies has our socio-cultural fabric, an essential been commissioned to promote Malta element of our tourism product; increase in our core markets. The introduction tourism earnings and operating profit for of low cost carriers is attracting an tourism operators; increase employment additional influx of visitors to Malta. We opportunities in this sector; ensure a wide are building a rich and varied calendar distribution of tourism earnings; increase of events that are giving our visitors a our nation’s competitiveness; decrease unique experience. the seasonal nature of our industry; We are reaping the results of our exploit Gozo’s unique characteristics; policies and planning. In the first six improve the accessibility to our islands; months of this year we managed to benefit from the opportunities afforded surpass one half million tourists. With to us by the developments in Information 501,802 tourists coming to Malta, the Technology; and maximise on the benefits first six months of this year were the best of our membership of the European six months in the past six years. Union. If we continue to pull the same rope Government is investing a good in the same direction – Government, percentage of the European Regional stakeholders and the public – I am sure Development Funds and the European that the positive results we achieved Social Funds 2007-2013 for tourism during the past months will be bolstered product development. Out of a billion for the benefit of all.

Francis Zammit Dimech Minister for Tourism and Culture

3 4 Tourism Policy for the Maltese Islands Contents

Executive Summary...... 7 Introduction...... 15 1 The Framework...... 17 a Better Quality of Life 2006-2010 - Pre-Budget document 2005...18 securing Our Future - Pre-Budget document 2006...... 18 national Reform Programme 2005-2008...... 19 national Strategic Reference Framework 2007-2013...... 20 eu Tourism Policy...... 22

2 International factors influencing Malta’s tourism prospects ...... 25 factors determining Europe’s prospects and Mediterranean trends influencing Malta’s prospects...... 25

3 Driving this policy through the public sector...... 31 The Public Sector...... 31 Cabinet...... 31 Inter-Ministerial Committee for Tourism ...... 32 Ministries...... 32

4 Our Vision for Tourism...... 37 objectives...... 37 Issues and challenges...... 38 our Policy Responses...... 38 Issue 1: Public Finances...... 38 Issue 2 Government’s role...... 39 Issue 3: sustainability...... 39 Issue 4: structural reforms required in tourism...... 40 Issue 4a: Tour operator business...... 40 Issue 5: distribution of income...... 40 Issue 6: Tourism Statistics...... 41 Issue 7: accessibility...... 42 Issue 7a: Low cost airlines...... 42 Issue 8: our product offer and destination management ...... 43 Issue 8a: Management of tourist areas...... 46 Issue 8b: Service provision through our people...... 46 Issue 9: Image/ Perception / Brand building...... 47 Issue 9a: Market development...... 48 Issue 10: Maximising EU opportunities...... 60 Issue 11: Achieving growth and value added in a mature destination...... 61 Issue 12: Reduce Seasonality...... 61 Issue 13: Employment, education and life-long learning...... 61 Issue 14: Price competitiveness and value for money...... 63 5 Monitoring the implementation of the policy...... 65 6 The Tourism Plan...... 67 7 Conclusion...... 69 Appendix 1 – International forecasts, European and Malta’s performance...... 71 Appendix 2 – The Private Sector...... 77 Acronyms...... 81

5 6 Tourism Policy for the Maltese Islands Executive Summary

The aim of this tourism policy is to present the guiding principles upon which decisions, actions and other matters relating to tourism in Malta are to be based and the framework within which Malta’s tourism activity is to be formulated in the coming five years. This tourism policy recognises the issues and challenges facing our country as a destination, which operates and competes within the international and local scenario. It presents a number of policy responses together with a number of goals and tasks which Government is committed to deliver within the next five years, 2007-2011.

Key Areas The tourism policy responses relate to four key areas, namely: • Governance • Competitiveness • Sustainability and • Macroeconomic matters.

Objectives The objectives of our tourism policy are: 1. to manage tourism in Malta and Gozo on the principles of sustainable development; 2. to maintain and conserve environmental and socio-cultural resources, being the key elements of the Maltese Islands’ tourism product; 3. to increase tourism earnings and tourism value added; 4. to sustain existing jobs and create more and better jobs; 5. to achieve a fair distribution of income; 6. to increase our competitive advantage and deliver quality and distinct tourism product, built on our characteristics;

7 7. to reduce seasonality; 10. develop synergies between tour- 8. to capitalise on the unique charac- ism and other development sec- teristics of Gozo; tors to ensure an integration of 9. to increase accessibility to and tourism policies within the other from Malta; development sectors’ policies and 10. to benefit from e-business in tour- plans and vice versa; ism; 11. maintain tour operator business 11. to maximise on Malta’s member- and improve relationships with ship of the European Union. tour operators also at a strategic level; Malta’s tourism policy 12. improve the quality and depth It is our policy to: of information available through 1. ensure the optimal use of the fi- tourism statistics and work on the nancial and human resources formulation of tourism satellite dedicated to tourism through the accounts; public sector and monitor the ef- 13. create the right image and percep- fectiveness of major initiatives; tion of Malta in overseas markets 2. deliver on our responsibility to and deliver our promise of an en- provide direction to the tourism riching stay; industry and to implement better 14. manage tourism zones by: regulation initiatives; a. ensuring that basic facilities 3. manage and balance economic, are available, well preserved social and environmental impacts and maintained; seeking the national interest, but b. identifying the most important not at the expense of degrading niches in the different zones environmental and socio-cultural and directing investment ac- resources; cordingly; 4. deepen our offerings focusing on c. developing a tourism zone our existing product elements and management plan; types of activity for improving 15. encouraging tourism service pro- quality and service provision; viders to provide a proper service 5. encourage creative thinking in which makes us more competitive seeking ways of increasing tour- and offers good value for money; ism value added also through the 16. continuously monitoring Malta’s provision of innovative and au- overall price competitiveness and thentic products; curb practices of overcharging 6. train and retrain personnel in the through increased enforcement and industry, create the right environ- consumer protection measures; ment for maintaining existing 17. ensuring adherence to set stan- employment, generate more and dards by the tourism service pro- better jobs in tourism, also in the viders and clamp down on prac- non-traditional segments of the in- tices which harm tourism (e.g. dustry, and invest in education and littering and illegal dumping, il- lifelong learning; legal hunting, vandalism, lack of 7. achieve a fair distribution of income; maintenance) 8. favour construction for tourism 18. taking initiatives which address purposes that respects our cul- the seasonality issue; tural and natural heritage; 19. marketing Gozo as a unique rural1 9. address the structural reforms re- destination; quired in tourism; 20. facilitating access between Malta

8 Tourism Policy for the Maltese Islands and Gozo through sea and air policy will be reviewed on the basis of its links; monitoring, when particular issues face 21. making Malta more accessible, fa- Malta’s tourism and when major changes cilitating the development of air in the international scenario occur. transport networks and attracting a mix of distribution channels; The stakeholders 22. increasing visibility on the web This tourism policy and the national and initiatives aimed at direct on- tourism plan can only be implemented line booking and further use of in- successfully if all the stakeholders par- formation technology for market- take in the process. The stakeholders for ing and information provision; this policy are: 23. maximising benefits of EU mem- • Government represented through bership and actively participate in all ministries and entities the decision-making process and • local Government discussions held at an EU level. • The Opposition • The private sector This policy is the result of a process of • Constituted bodies including non internal and external consultations. This governmental organizations, par- tourism policy is based on Malta’s overall ticularly those relating to tourism, economic and social strategic framework as environment and culture. specified in key Government documents. It • The Church is framed within the context of internation- • The residents of Malta and Gozo. al, Mediterranean and national develop- Government is not the sole stake- ments and trends. It presents a number of holder in the industry. Government’s policy responses to the issues facing Malta’s objectives are the national interest, an tourism. The national tourism plan sets a improved quality of life and overall gov- number of tasks to be delivered by govern- ernance. It is responsible for setting the ment to ensure the implementation of this right environment for tourism, for regu- tourism policy. lating the industry, for marketing Malta as a tourism destination and for ensuring Driving this policy an improved tourism product, particu- The Ministry responsible for tourism is larly in publicly owned spaces. Whilst the entrusted to drive this policy. The policy private sector’s aim is profitability, it is will be driven and monitored by the Min- also responsible for delivering a value for istry for Tourism and Culture (MTAC) money tourism offer to our guests. It is to ensure that this policy is being imple- responsible to ensure that its operations mented by the Malta Tourism Author- are managed appropriately through fur- ity (MTA), by other Ministries and by ther investment in innovative and effec- other Government entities which are tive marketing of the offer, investment in responsible for tasks within this policy. the physical product which it owns and The MTAC will report to the Inter-min- investment in training the current and isterial Committee for Tourism which potential workforce . The private sector’s will ensure that all parties are on board. corporate social responsibility can be It is the responsibility of all government achieved through investment in public ministries and entities to deliver on the spaces, infrastructure and culture. Col- elements referred to in this policy and laborative efforts among the tourism ser- that fall within their remit. The tourism vice providers can be done through co-

1 rural tourism in this context refers to a destination characterised by rural and cultural activities, increased possibilities for relaxation and for active holidays, protection of and accessibility to the unspoilt natural environment and closer integration with the local community.

9 10 Tourism Policy for the Maltese Islands ordination carried out by the constituted presented in MTA’s revised strate- bodies. gic plan, For Malta to remain competitive, all • the functions and deliverables stakeholders must partake in the imple- contributing to tourism which fall mentation of this policy and ensure that under the remit of other minis- all decisions, actions and projects are tries and entities, and based on the principle of sustainability, • the private sector’s role and con- do not harm the industry and are opera- tribution to tourism. tionally profitable in terms of tourism. The plan is extended to present how the nation is to integrate its marketing The implementation process efforts and destination management en- The Ministry for Tourism and Culture has compassing service delivery, enforce- formulated the National Tourism Plan ment at all levels, product management which specifies the actions to be imple- and sustainability. The Plan will cover the mented in line with this tourism policy. The period 2007 – 2011. national tourism plan identifies the required Monitoring of the plan will focus on actions, deliverables, responsibilities and ensuring implementation and assessing timeframes. It outlines: to what extent objectives of identified ac- • what the Malta Tourism Authority tions have been reached. will do, specifying the deliverables

Malta’s Tourism Policy

National Tourism Plan

Ministries’ and The private sector’s role, entities’ responsibilities responsibilities, actions and actions and initiatives

Malta Tourism Authority’s Strategic Plan

11 12 Tourism Policy for the Maltese Islands Malta’s Tourism Policy 2007-2011

13 14 Tourism Policy for the Maltese Islands Introduction

The aim of this tourism policy is to pres- The level and nature of tourism de- ent the guiding principles upon which velopment also has to be considered decisions, actions and other matters re- when formulating Malta’s tourism policy. lating to tourism in Malta are to be based Malta’s tourism sector is influenced by and the framework within which Malta’s the decisions and actions of government tourism activity is to be formulated in the bodies and of the private sector. The end coming five years. result of all these decisions and actions is The overall objective of this tourism the performance of tourism often mea- policy is to move towards sustainable sured through indicators such as tourist tourism, taking into account not only eco- volumes, tourist expenditure, tourism nomic considerations but also environ- earnings, employment in tourism and mental and social implications. Although tourism value added. it is a policy for the next five years, deci- Malta’s overall economic and social sions taken within the framework of this strategic framework, the international policy must also be considered in terms trends and local developments point to of their long term implications, beyond a number of issues and challenges facing the timeframe of this policy. the tourism industry. The policy respons- This tourism policy is set within Mal- es to these issues are outlined in section ta’s overall economic and social strategic 4 of the document. The issues and poli- framework as specified in key Govern- cies are not presented in any particular ment documents, and as outlined in Sec- order and are not in order of priority. tion 1 of this document. This tourism pol- Policy statements are provided for each icy is also based on the European Union’s issue. Complementing this policy docu- tourism policy. The key objectives of the ment, the national tourism plan presents overall framework are sustainable eco- a number of government goals and tasks nomic growth, employment, education for each issue. These tasks and goals are and environment. not exhaustive but provide an indication Malta’s tourism policy is also framed of government’s commitment to address within the context of international and each issue. The primary responsibility national developments and trends. Sec- for task implementation is specified, to- tion 2 identifies the various international gether with other players’ secondary re- factors which determine Europe’s pros- sponsibility. pects and Mediterranean trends that will The tourism policy must be imple- be influencing Malta’s prospects. These mented and closely monitored if it is to factors are taken into account in deter- achieve its desired objectives. Whilst mining Malta’s tourism policy. A brief section 5 provides the monitoring mech- comparative analysis of our performance anisms that will be used to assess the and that of our competitors’ performance policy’s implementation, section 6 makes together with international forecasts for reference to the national tourism plan the coming years are provided in Appen- which is aimed at guiding the actions dix 1 of this policy document. Appendix of stakeholders for the development of 2 provides an overview of the various tourism in Malta and Gozo. tourism services provided.

15 16 Tourism Policy for the Maltese Islands Section 1 The Framework

Government’s tourism policy exists within the country’s overall economic and social strategic framework. Government has published three seminal documents: the 2005 and 2006 Pre Budget Docu- ments, the National Reform Programme and the National Strategic Reference Programme, which define its economic and social objectives. These documents also show how Government is working to achieve these objectives through concrete measures. The tourism policy is based on these documents and on the European Union’s policy document entitled “Tour- ism – Key to Growth and Employment in Europe”. This section quotes the relevant parts from these documents so as to place the tourism policy within the broader picture of national governance. Our policy takes into account the Carrying Capacity Assessment (CCA), published in 2001 and which covers the period 2000 - 2010, and which is still relevant to today. The CCA stated that:

1 Tourism’s contribution to the economy must be maintained by increasing foreign earnings and per capita expenditure. 2 Investment should be channeled towards resource-efficient segments. 3 social and private benefits and costs must be assessed to assist in directing resource allocation. 4 The volume of hotel-type bed stock must be stabilised and the quality of service, occupancy levels and room rates improved. 5 summer volumes must stabilise below saturation levels. 6 Malta’s tourism offer must be enhanced by better presentation of available options. Improvement of

17 the current offer is more of a prior- regards to sustainable growth and ity than adding to the product offer. development; 6. To upgrade our Nation’s environment and infrastructure in order to A Better Quality of Life 2006-2010 ensure an improved quality of life – Pre-budget document 2005 through sustainable development and the regeneration of our heritage; In the 2005 pre-budget document entitled 7. To provide an equitable safety net “A Better Quality of Life” Government that removes the risk of poverty and laid out its mission to ensure a stable realises the goal of social inclusive- macro-economic environment capable of ness with benefits paid and appro- fostering sustainable economic growth, priate support provided to those increased and better employment oppor- who are genuinely in need. tunities and the sustainability of our social responsibilities. We stated then that When focusing on tourism’s role in to achieve this mission, we needed to ad- achieving these measures, the document dress a number of economic and social stated that to be competitive our tourism fundamentals: sector must: 1. To attain a balanced position for • Place strong emphasis on the prod- public finances in the medium uct side. Our country can only be term in order to regain fiscal flex- competitive if it is not suffering ibility that would act as an eco- from product fatigue and is vibrant nomic spur to long-term econom- and trendy as ever. This means im- ic growth and higher standards of proving the quality of our tourism living; amenities such as well-managed 2. To re-position the capital and hu- beaches that are designed according man resources of the public sector to blue-flag beaches criteria. to efficiently and effectively con- • achieve high quality that includes tribute to better service delivery the right and correct approach by and economic growth; all persons who come into contact 3. To focus Government’s role in the with our visitors. economy on the regulatory aspect, • operate within a clean and healthy facilitating rather than participat- environment. ing as an operator in economic ac- • have regular events that promote tivities; Malta as a worthwhile experience 4. To accelerate the necessary struc- rather than just another destination. tural reforms in the supply side of • exploit affordable travel that will the economy by providing flex- materialise through the operation ibilities in the labour, product/ser- of major low cost carriers to Malta. vices and capital markets, thereby The document also referred to the need increasing productivity; to develop a strong brand for the country 5. To guarantee quality lifelong edu- to move away from the traditional image cation and training opportuni- of a ‘sun, sand and sea’ destination. ties for all, leading towards the maximum possible fulfilment of the potential of every person and Securing our future – fostering of a knowledge-based Pre-budget document 2006 culture to improve our country’s competitive edge for the satisfac- The Pre-budget document 2006, builds tion of the country’s needs with on that of 2005. It seeks to open up for

18 Tourism Policy for the Maltese Islands debate a number of specific themes • strengthening our marketing ef- within last year’s set three pillars, focus- forts in overseas markets through ing on: a branding exercise • a sustainable taxation system to • improved beach facilities, moni- secure sound economic manage- toring and maintenance of our ment and well-functioning of tourism zones public systems; • investment in our cultural heritage • a sustainable environment and and in our World Heritage Sites energy strategy to secure a cleaner • marketing Gozo as a unique expe- and better environment; rience • the creation of the right environ- • training and retraining personnel ment for industry to operate and in the industry and ensuring that to invest in innovation to secure our guests are offered the best ser- the creative responses to competi- vice possible tion and globalisation; and • help improve the industry in in- • sustaining our society to secure creasing the quality of service de- higher competence and living livery standards for all of our people. • a strong regulatory arm ensuring standards are adhered to by the This year’s pre-budget document pres- private tourism service providers ents the following as its main themes: who will be encouraged to move • towards a more inclusive and par- towards quality assurance ticipatory society; • actively participating in the deci- • a socio-economic strategy for sion-making process at a Europe- Gozo; an level, • incentivising work and growth - a • allocating a proportion of struc- review of the fiscal regime; tural funds to tourism for govern- • sustaining industry and tourism; ment-led projects, for supporting • sustaining growth through re- tourism and cultural projects un- search and innovation; dertaken by private enterprise and • towards sustainable development; non-profit making organizations • mainstreaming the EU dimension and for training and employment to the 2007 budget. creation.

Focusing on tourism, the document recognizes that tourism has the potential National Reform Programme to give Malta sustained economic growth 2005-2008 and good employment opportunities. The document specifies the following key In October 2005, the National Reform focus areas for tourism: Programme was published. It aims at de- • the formulation of Malta’s tourism livering growth and jobs in line with the policy refocused Lisbon Agenda. The document • building on the power of the in- identifies five strategic themes. These ternet for planning and booking are: holidays • improving accessibility by air 1 Sustainability of public finances; through low cost carriers operat- 2 Competitiveness; ing to Malta 3 Employment; • strengthening our relations with 4 Education and training; and, tour operators 5 Environment.

19 Within this context, the NRP pro- National Reform Programme, the docu- posed four tourism-specific measures: ment defines Malta’s medium and long 1. Within the restructuring process term strategic objectives in view of the of MTA, implement a new two- objectives of the EU’s Structural Funds pronged strategy for tourism en- which Malta has negotiated for, obtained compassing mainstream tourism and will be eligible to utilise during the and identified niche tourism. This next programming period 2007 to 2013. strategy will also outline ways of Table 1 lifted from the NSRF sum- increasing private sector involve- marises these objectives. ment in the management of at- This document again emphasises the tractions such as beaches, cultural need to brand Malta, to develop and in- assets and other areas. vest in the arts, our cultural heritage and 2. Upgrade key heritage sites to im- to further invest in human resources prove their interpretation, acces- working in the tourism and creative in- sibility, conservation and promo- dustries through Structural Funds. The tion. NSRF refers to the need to increase the 3. Introduce tourism zone manage- competitiveness of tourism service pro- ment tools to raise quality stan- viders, to stimulate and direct investment dards. by the private sector and spearhead in- 4. Implement a branding exercise for vestment in human resources. The docu- tourism, shifting overseas mar- ment states that the private sector should keting from a geographical mar- be assisted to conduct its own marketing ket approach to a segmental ap- activities to complement the country’s proach. destination marketing. In this context, The NRP also defined the need to the NSRF makes a specific reference to develop and promote an E-society and Gozo. Investments in E-services being improve and expand the transport infra- offered by the tourism enterprises need structure to attain the growth targets set to be supported alongside e-business out by the Lisbon agenda. mentoring programmes for the tourism industry. In order to be more competitive, businesses should be encouraged National Strategic Reference to invest in environmental systems and Framework 2007-2013 become more energy efficient. Besides assisting the private sector, the country In March 2006, following an intensive must also capitalise on the expertise and dialogue process, Government published energies of the strong and active pres- the National Strategic Reference Frame- ence of non-governmental organisations work (NSRF). Based and building on in the cultural and tourism fields. the 2005 Pre-Budget document and the

20 Tourism Policy for the Maltese Islands Table 1: National Strategic Objectives for Structural Funds, NSRF

Strategic Objective 1: Sustaining a growing and knowledge-based, competitive economy

Supporting entrepreneurship and mobilizing investment in research, technological development and innovation (RTDi) Access to finance, SMEs Implementing an RTDi strategy Enterprise infrastructure

Sustaining the tourism industry and promoting culture Access to finance, SMEs Conserving and promoting Malta’s cultural heritage Enhancement and promotion of Maltas tourism offer

Promoting an E-Society Developing more E-Government services Facilitating access to ICT More efficient ancillary business services

Improving and expanding the transport infrastructure Roads, Inter-island sea ports and air services

Strategic Objective 2: Improving the quality of life through environment protection and urban regeneration

Environment, energy and risk prevention Environmental protection, compliance with the Acquis Waste management Water Energy generation and efficiency Urban regeneration

Strategic Objective 3: Investing in human capital

Education and employment Expand and improve investment in human capital Adapt education and training systems to new competence requirements Promote a life-cycle approach to work Ensure inclusive labour markets Education infrastructure

Strategic Objective 4: Addressing Gozo’s regional distinctiveness

Enterprise promotion, tourism and service sectors Accessibility issues, road and sea transport Human capital and skills

21 EU Tourism Policy ments to ensure better regulation in the tourism sector at an Euro- In October 2005, in Malta, the Vice pean level; President of the European Commission, 2. Integrating tourism in all related Gunther Verheugen launched the Euro- community policies and making pean Union’s tourism policy. The main sure that there is adequate co-or- aim of this policy is “to improve the com- dination of the various policy ini- petitiveness of the European Tourism tiatives; Industry and create more and better jobs 3. supporting the environmental, through sustainable growth in Europe economic and social sustainability and globally”. The policy is based on four of European tourism; pillars, namely: 4. Promote the visibility of European 1. Cut excessive red tape, simplify tourism through common public rules and improve impact assess- and private sector policies.

These documents clearly portray gov- development of Gozo’s potential. Malta’s ernment’s belief in tourism’s potential to marketing efforts to support these goals be a major driver for: sustained economic should be based on our unique product growth; better employment opportuni- offering, particularly our heritage. We ties; continuous education and business should also capitalise on low cost travel innovation as well as ensuring the con- opportunities and the increased poten- servation and appreciation of the envi- tial of internet as a selling force. ronmental and socio-cultural resources. Tourism must also be at the centre of the

22 Tourism Policy for the Maltese Islands 23 24 Tourism Policy for the Maltese Islands Section 2 International Factors Influencing Malta’s tourism prospects

Our tourism policy must also be framed in the context of the developments happening in the national and international context. One cannot just take a snapshot of current international developments but must take into account the factors affecting Europe’s prospects, overall ex- pectations and forecasts of European tourism. This section defines the prevail- ing forces that are shaping the tourism industry, through analysis of national and international data.

Factors determining Europe’s prospects and Mediterranean trends influencing Malta’s prospects

Competition, technology, prices and exchange rates, airlines, tour operators, perceptions on safety and on destinations, political, social and behavioural trends are among the factors that determine Europe’s prospects and inevitably those of Malta. The performance of the European tourism industry is characterised by high levels of destination competition from both within and outside the region. New and emerging destinations such as Croatia, Serbia-Montenegro, the Balkan countries, Romania and Bulgaria, create competition for the established and mature destinations. Countries such as Morocco and Tunisia, with their low cost structures, create tough price competition for the Southern Mediterranean destinations, including Malta, which have higher labour and service costs.

25 Price remains a key determining factor in Table 2: National Tourism the choice of destination made by the po- Administration Budgets in 2005 tential tourist who is increasingly seeking lower prices but higher value for money. Destination 2005 Budget % change (millions over 2004 This is also evident from the increased of euros) market share of low cost, no frills airlines and from the lower priced tour operator Austria 46.2 +1.50% packages to destinations such as Tunisia Cyprus 51.9 +16.60% which attract high volumes of tourists. Czech Republic 6.8 -5.60% Malta’s price competitiveness is an issue Denmark 27.4 -0.40% which needs continuous monitoring. Estonia 2.9 +52.60% The economy is a major determinant Finland 26.5 0.00% and influences Europe’s tourism. The France 50.9 +3.70% aim of the euro, the single European cur- Germany 31.1 0.00% rency, was to create a single low inflation Greece 121.7 +22.30% European economy with a more stable Hungary 17.6 -26.10% and resilient currency. This is having a Ireland 66.0 +10.90% positive effect on the European tour- Italy 49.8 +32.40% ism industry. The new member states Lithuania 1.1 +22.20% of the European Union will be adopting Luxembourg 3.0 0.00% the euro in the coming years. Whilst re- Malta 22.7 +3.10% ducing additional costs incurred for ex- Netherlands 28.0 0.00% changing currencies and paying credit Norway 28.5 +34.40% card bills, the introduction of the euro Poland 7.7 -9.40% provides tourists with easier comparison Romania 5.7 -5.00% of prices among origin countries and des- Slovakia 6.3 +162.50% tinations. Malta is aiming to introduce Slovenia 8.5 +4.90% the euro in January 2008. When the euro Spain 96.2 +13.20% is introduced, and in order that Malta’s Sweden 14.0 -3.40% price competitiveness is not reduced, it Switzerland 43.2 +1.90% is essential that prices are not increased Tunisia 34.7 -4.60% by the private sector, thus creating infla- United Kingdom 71.7 -1.60% tion. Competition is also affected by na- One must note that the budgets of tional tourism administration budgets the larger destinations are further sup- and destinations’ promotional activities, plemented by regional and city budgets which are on the increase and are based which are independent of NTA budgets. on more aggressive marketing strategies. An increasing number of NTAs are en- The following table shows how Malta’s tering into joint ventures with the private main competitors and a number of emerg- sector with the marketing and promo- ing destinations are pumping increasing tion budgets attracting a greater financial funds into their national tourism admin- contribution from the private sector. In istration (NTA) budgets. The countries France, for example, numerous cam- bordering the Mediterranean which are paigns were solely or largely funded by listed in the table below increased their the private sector. NTA budget in 2005 by 14%. Accessibility to travelling and to tourism services is on the increase, particularly as a result of technology. Organisations continue to develop their own marketing and sales packages in order to identify

26 Tourism Policy for the Maltese Islands and communicate with individual mar- will exceed demand, resulting in lower ket segments and niches. The trend is occupancy levels and room rates. towards a direct, or segmented, market- The increase in the price of oil also ing approach, whereby specific custom- influences the tourism industry through ers are targeted. This type of marketing, increased costs for airlines, but not nec- which is different from traditional -mar essarily on the price of transport. It af- keting techniques, is being made possible fects the bottom-line of operators, both by the development of tourism informa- in the airline industry and other tourism tion systems and electronic networks. service providers. Aggressive competi- The internet provides destinations the tion through real-price reductions has, opportunity to, as the UNWTO Tourism in some cases, neutralised the fuel sur- 2020 Vision report states, “support two charges that airlines had to incur. important marketing strategies at the Travel within Europe is becoming in- same time: segmentation and globalisa- creasingly attractive due to the availabili- tion. One may contact the ‘entire world’ ty of low cost travel. City destinations are and at the same time create specific consequently faring better than coastal products for very different market seg- or their respective nations. Low fare ments.” It is not only traditional tourism travel in Europe continued in its upward service providers such as tour operators spiral, increasing by 27 per cent and con- and hoteliers that are selling the tourism trolling 34 per cent of overall air travel in product through the web, but also other 2005. Low cost carriers are dictating the non-tourism companies which sell a wide pace and nature of growth of the tour- range of holiday products. The market is ism industry in Europe. Travellers that now much more open to service provid- use LCCs travel more frequently, spend ers than in past years. Malta must develop less on travel, take short-break trips and such direct marketing approaches if it is to travel on the spur of the moment. This in tap into this growing market. E-commerce spite of the on-going threats of terrorism also provides the opportunity to tour- surrounding the airline sector. The low ism industry suppliers who will not need cost operators are introducing greater ca- to depend so highly on printed material, pacity at a faster rate than the traditional thereby making significant cost savings. airlines. The major European airlines al- Destinations also face competition low for increased interlining traffic and from the increased range of goods and are therefore still important air transport services available in the home country service providers. It is important to note that vie with travel and tourism for discre- that air travel accounts for 43% of tour- tionary time and spending. Furthermore, ism in Europe, whilst travel by sea repre- the tourism offer in each destination and sents 7%. Malta cannot benefit from the in the home country presents further remaining 50% of trips which are taken competition for destinations as potential by road or rail transport. Malta currently tourists decide whether to travel to an- attracts about 50 airlines which oper- other country or opt for domestic tour- ate to and from the Malta International ism. Airport and which carry over 2.7 million Existing accommodation establish- passengers in total. Among the airlines ments are facing increased competi- which carry over 100,000 passengers tion from the huge increases in bed- are Air Malta, British Airways, Alitalia, stock placed on the market in the newer Lufthansa, British Jet, and Britannia European destinations and in Northern Airways. African destinations bordering the The tourism industry has undergone Mediterranean. It is envisaged that in an unprecedented level of consolidation the next few years, the supply of bedstock over recent years. Tough price compe-

27 tition in European markets appears to and the availability of media reporting be the main reason for this consolida- on major events and issues. These media tion. Tour operators are consolidating reports are likely to feed into increased their operations, moving into vertical awareness of tourism development issues and horizontal integration, gaining both and lead to increased scrutiny on the part economies of scale and scope. Travel of the public in destination management and tourism service providers are also and decision making. Sea, water and gen- utilising a diagonal integration strategy, eral cleanliness, air pollution, recycling, whereby they establish operations to of- habitat, flora and fauna protection, and fer products and services which tourists the level of urbanisation, amongst other commonly purchase but which are not issues, are among the environmental is- directly part of the tourism product. Tour sues that attract attention. Sustainable operators’ strategic decisions inevitably development, on all fronts, is a growing affect destinations, including Malta. In requirement. The increased environ- 2003 and 2004, total charter operations mental awareness is in itself generating increased by 5% and 7% respectively. A demand for niche tourism products. decline of 16% was however recorded As the majority of Europeans live in in 2005, particularly due to decisions densely populated urban areas, demand taken by operators such as My Travel, for rural areas, short breaks, activity First Choice, Condor and Corsair. One based trips, coastal views, or a combina- must recognise the fact that tour operation of these is on the increase. There is tors’ decisions are taken well in advance a trend to travel to more remote and less of the impact of those decisions being well known and accessible locations. felt and statistically recorded. Decisions According to the UNWTO, these so- which are taken today do not only have cial trends will solidify the attraction of an immediate effect but also influence mass market mainstream tourism to de- the coming years. veloped destinations, whilst at the same Political, social and behavioural time generating demand for individu- trends also influence the prospects of alised or niche tourism products. European tourism. Easing of travel re- Europe’s tourism will be shaped as strictions such as border controls and a result of increased competition, so- the Schengen agreement among coun- cial trends, the euro as a common cur- tries facilitates travel. Demographic rency in many European countries, the trends indicate that the proportion of increased financial accessibility due to senior citizens will increase in Europe’s the growth of no frills, low-cost airlines, mature economies, whilst workforces and a high level of consolidation by tour will contract as the number of young operators. Malta, highly dependent on people contracts. This is expected to re- its surroundings, has, throughout the sult in an increased demand for tourism years, had to face hard times in order to products suited to the older market seg- flourish. Whilst international trends are ment, a niche in itself. Value for money crucial in determining Malta’s future, the will remain important. islands’ characteristics, uniqueness and Environmental awareness is on the in- level of service are what will distinguish crease in Europe also as a result of higher this destination from its competitors. living standards and levels of education,

28 Tourism Policy for the Maltese Islands 29 30 Tourism Policy for the Maltese Islands Section 3 Driving this Policy Through the Public Sector The Ministry responsible for tourism is charged to drive this policy. The policy will be driven and monitored by the Min- istry for Tourism and Culture (MTAC) to ensure that this policy is being implemented by the Malta Tourism Authority (MTA), by other ministries and by other government entities which are responsible for elements within this policy. The MTAC will report to the Inter-ministerial Committee for Tourism which will ensure that all parties are on board. It is the responsibility of all government ministries and entities to deliver on the elements referred to in this policy and that fall within their remit. The tourism policy will be reviewed on the basis of its monitoring, when particular issues face Malta’s tourism and when major changes in the international scenario occur.

The Public Sector: Who is responsible for what?

Although one could argue that every en- tity in Malta is somehow related to tourism, there are three Government structures whose purpose is mainly focused on tourism, namely the Interministerial Committee for Tourism, the Ministry for Tourism and Culture and the Malta Tourism Authority. The other ministries and entities have a key role and responsibility to play through their areas of responsibility which are very important for tourism.

Cabinet Government’s vision for Malta is ‘that of a dynamic, high-value-added economy founded on competence, skills, excellence and capable of sustaining a high

31 standard of living for its entire people’.2 and propose Malta’s position according- The Cabinet, amongst other matters, dis- ly. The Ministry, through its Information cusses and takes decisions directly relat- Management Unit, also focuses on issues ing to tourism. Cabinet has approved this relating to the management of informa- tourism policy. tion systems and internet content, in the fields of both tourism and culture. Inter-Ministerial Committee The Ministry provides the Malta for Tourism Tourism Authority with the necessary Chaired by the Prime Minister, the In- funding to enable it to meet its objec- ter-Ministerial Committee meets to deal tives including the marketing of Malta expediently with cross-ministerial issues as a travel and tourism destination, and affecting Malta’s tourism performance. to address product and human resource development issues, and to deliver on its Ministries regulatory functions. Tourism is influenced by various activities and therefore it is the responsibility Malta Tourism Authority (MTA) of all. Each Ministry through its particu- The AMT ’s mission is to advance the lar remit contributes and aims to secure economic and social activity of tourism a successful tourism industry based on in the national interest, by working with value for money and a product offer. all stakeholders to develop a sustainable industry based on innovation, competi- Ministry for Tourism and Culture tiveness and quality. MTA’s key respon- (MTAC) sibilities are branding Malta, marketing The Ministry’s role in tourism is to co- Malta, developing the Maltese tourism ordinate the joint efforts of Government, product and human resources, and reg- national agencies and the private sec- ulating tourism service providers. It is tor at all levels of tourism’s broad-based MTA’s responsibility to co-ordinate its structure as well as develop synergies efforts in these areas of responsibility to between the industry’s principal stake- ensure the maximum effectiveness of its holders and supporting players. It aims actions. at working towards the development and enhancement of Malta’s product offer, Ministry of Finance (MFIN) thereby ensuring that the industry offers The Ministry is responsible for adminis- value for money and achieves maximum tering public funds, financial regulation economic returns while retaining its role and advancement of the economy. The as a primary contributor to the Gross Do- Malta Statistics Authority (MSA) and mestic Product, to Malta’s employment the National Statistics OfficeNSO ( ) fall generating potential and to Government under the responsibility of MFIN. The revenue. The Ministry also encourages NSO has the responsibility to ensure that and supports operators in the areas fall- timely and correct data is collected. ing within its responsibilities to apply for It is the responsibility of this Minis- EU funds and participate in EU-funded try to ensure that budgets allocated for activities and, where these funds are han- tourism yield the highest return on in- dled by the Ministry, to ensure that their vestment and that funds are allocated for use is as stipulated in Community and areas that have a high impact on tourism national laws and administrative provi- such as infrastructure and cultural de- sions. It also is responsible for screening velopment. The Ministry is responsible EU legislative and non-legislative propos- for tax collection including collecting its als that may affect tourism and culture dues from tourism operators. The Minis-

2 securing our Future - _Pre-Budget document 2007

32 Tourism Policy for the Maltese Islands try is also in charge of the economic poli- offer. Government’s belief in the unique- cy in which tourism plays a major role. ness of Gozo as a tourist destination is reflected in the attention that is being given Ministry for Justice and to Malta’s sister island. Home Affairs (MJHA) Parliamentary Affairs, Courts of Justice, Ministry of Health, the Elderly and local government, police, airport secu- Community Care (MHEC) rity and civil protection are amongst the Government will keep investing in the responsibilities of the MJHA. All areas health sector, for the benefit of locals and impact directly on the tourism industry. tourists. This ministry’s mission is to pro- Safety and security are crucial for tour- mote and ensure a healthy lifestyle for the ism activity. Local councils are encour- citizens of Malta, through the provision aged to undertake tourism related initia- of health care services and the necessary tives (even by participating in EU funded monitoring and control mechanisms. projects) in order to upkeep product fa- Health tourism is being looked into also cilities around the islands. by private hospitals.

Ministry of Education, Youth Ministry for Investment, Industry and Employment (MEYE) and Information Technology (MIIIT) Within the remit of the MEYE fall edu- Government Investments (which include cation (including higher education which Air Malta p.l.c., Water Services Corpora- includes MCAST and the Institute for tion, and Enemalta Corporation), Infor- Tourism Studies - ITS), Youth, Sport mation and Communications Technol- and Sport Complexes, Employment and ogy, investment promotion and Malta Training, Cooperatives, Libraries and Enterprise fall within the responsibilities Archives. All of these link to tourism ei- of MIIIT. ther directly or indirectly. Air Malta contributes to making Malta accessible and is a key player for Ministry for Competitiveness and Com- our tourism industry. This highlights the munications (MCMP) importance of Air Malta maintaining The responsibilities of MCMP include its competitiveness. Water and energy competition policy , small businesses and production are essential necessities and self-employed, trade services, consumer government will continue with its efforts protection, the Malta Standards Author- in these two sectors. Government has ity, Civil Aviation, and the Malta Mari- presented its renewable energy policy time Authority. and will continue supporting water and energy saving measures. Ministry for Resources and Infrastruc- Opportunities for business travel are ture (MRES) available and will be looked at through syn- Under the responsibility of the MRES ergies between MTA and Malta Enterprise. fall the Malta Resources Authority, the E-society is one of the key areas fall- Building Industry Consultative Council ing within the remit of this ministry. The (BICC) and the Works and Services Di- tourism portal is an initiative which both visions. Departments within these two the MTAC and MITI are working on to Divisions include the Construction and ensure its full potential. Maintenance Department (which incor- porates a Restoration Unit) and Cleans- Ministry for Rural Affairs and ing Services Department. the Environment (MRAE) Ministry for Gozo (MGOZ) MRAE is responsible for rural develop- Gozo is an important part of our tourist ment, agriculture, fisheries, the environ-

33 ment, the implementation of the waste Solidarity Services and Equality among management strategy and the Malta other matters. Environment and Planning Authority (MEPA). Policies and interventions that Ministry of Foreign Affairs (MFA) fall under MRAE affect the industry in a MFA is responsible for relations with the direct way. European Union, foreign and Common- wealth countries, for international eco- Ministry for Urban Development nomic relations, external trade and EU and Roads (MUDR) information. MUDR is responsible for the upgrading of Malta’s land transport infrastructure This national tourism policy can only and the facilitation of capital projects un- be successful if a holistic approach is taken dertaken by Government or in partner- and there is the commitment of all stake- ship with the private sector. The Malta holders primarily ministries and govern- Transport Authority (Awtorita dwar it- ment entities. Government will develop a Transport - ADT) falls within the remit planning strategy that will co-ordinate the of this ministry. efforts of ministries and entities with the Transportation is crucial to tourism. objective of capitalizing on each other’s ef- Buses, taxis, karozzini and other modes of forts rather than creating situations that land based transport are regulated by and hinder development of other sectors. are the responsibility of the ADT. Government is committed to public consultation and to working in part- Ministry for the Family and nership with the private sector and Social Solidarity (MFSS) other stakeholders. The private sector is Social, Family and Child Policies all fall strongly represented through advisory under MFSS, which is also responsible for committees.

34 Tourism Policy for the Maltese Islands 35 36 Tourism Policy for the Maltese Islands Section 4 Our Vision for Tourism Malta’s overall policy framework and the factors influencing international tourism and particularly tourism in the Mediter- ranean, point to a number of issues and challenges facing the tourism industry. These issues must be addressed through our policy responses which must meet our objectives.

Objectives The three declared Government objectives - Environment, Economy and Education (the 3 Es) and the European Union’s policy objectives of economic growth, employment and sustainability are reflected in the national tourism policy objectives, which are:

1) to manage tourism in Malta and Gozo on the principles of sustainable development; 2) to maintain and conserve environmental and socio-cultural resources, being the key elements of the Maltese Islands’ tourism product; 3) to increase tourism earnings and tourism value added; 4) to sustain existing jobs and create more and better jobs; 5) to achieve a fair distribution of income; 6) to increase our competitive advantage and deliver quality and distinct tourism product, built on our characteristics; 7) to reduce seasonality; 8) to capitalise on the unique characteristics of Gozo; 9) to increase accessibility to and from Malta; 10) to benefit from e-business in tourism; 11) to maximise on Malta’s membership of the European Union.

37 long learning and will work with rel- To achieve these objectives we need to evant authorities in order to improve take into account these issues which education in the tourism sector; relate to governance, competitiveness, Issue 14: Price competitiveness and value sustainability and macroeconomic for money. matters.

Issues and challenges: Our policy responses Issue 1: Public finances are finite and must be spent in the most cost effec- We believe that our tourism industry has tive manner; the potential for effectively contributing Issue 2: It is the role of government to act to Malta’s economic and social develop- as facilitator for and regulator of the ment. We are faced with a number of tourism industry; challenges arising from external and in- Issue 3: Developing tourism in a sustain- ternal factors. able way to ensure an improved qual- The following section identifies the ity of life through the conservation various issues that must be tackled and and maintenance of environmental for which a policy response is required. and socio-cultural resources; This section specifies the national- tour Issue 4: Our tourism industry in general ism policy relating to each of these issues. needs to undergo a structural reform The national tourism plan outlines the in order to ensure quality assurance, tasks which government through MTAC, innovation in our product and mar- MTA, or its other entities will deliver in keting strategies, an optimum mix of the next five years to address these issues. the different distribution channels; The co-operation of the private sector is Issue 5: We need to achieve a fair distri- essential to achieve the objectives of this bution of income policy. These policies are related to gov- Issue 6: NSO statistics should be devel- ernance, sustainability, competitiveness oped to serve also as a tool for plan- and macroeconomic matters. ning and evaluation; Issue 7: Malta’s increased accessibility; Issue 8: Our product offer and destina- Issue 1: Public finances tion management requires urgent upgrading. Tourist areas should be Public finances are finite and must be managed in an attractive manner spent in the most cost effective manner. while ensuring that we give the highest quality service; Policy: Issue 9: Improving the image and per- We will continue to ensure the optimal ception of Malta locally and overseas use of the financial and human resources through our brand exercise and our dedicated to tourism through the public segment based policy; sector, particularly to the Malta Tourism Issue 10: We will continue maximising Authority. This will be done by moni- on EU opportunities; toring the use of such resources and by Issue 11: The challenge to achieve growth ensuring that MTA develops methods of and value added in a mature destina- assessing the effectiveness of its major tion; initiatives whilst seeking ways of improv- Issue 12: Our efforts must be directed in ing such initiatives. Through our initia- order to reduce seasonality; tives and through our way of operating, Issue 13: We will invest in the people we will contribute to attaining a balanced working in the industry through life- position for public finances in the me-

38 Tourism Policy for the Maltese Islands dium term that would lead to long-term economic, social and environmental economic growth and higher standards impacts of tourism seeking the national of living. interest. We will consult and work with stakeholders to manage tourism. We will seek to direct tourism activity to- Issue 2: It is the role of government to wards complementing the three pillars act as facilitator for and regulator of of economy, environment and society the tourism industry. rather than allowing them to work in conflict. Policy : One potential area of conflict is con- We will continue to deliver on our re- struction of buildings. It is our policy to sponsibility to provide direction to the favour construction for tourism purpos- tourism industry, particularly through es that respects our cultural and natural this tourism policy and the national tour- heritage. In non-built-up areas and in the ism plan. MEPA-designated outside development Through regulation and particularly zones, soft tourism related projects not in through MTA’s regulatory directorate, conflict with the environment and social we will ensure consumer protection and fabric may be considered. Construction the adherence to standards to achieve practices must adhere to all building and competitiveness. construction site management regula- We will work closely with our stake- tions. In tourism zones, construction ac- holders to implement our policy of bet- tivity must seek to reduce disturbance to ter regulation. We will, as much as is ef- neighbours and visitors staying in nearby fectively possibly, adopt a one-stop shop accommodation establishments. approach. This has been and will be the Quality of life is not solely influenced case in the running of schemes for the by the physical infrastructure. Traffic de- tourism industry. lays, littering, noise, vandalism, lack of Co-ordination among different min- concern and respect to public morals, istries will continue to take place to en- clean water, lack of greenery and open sure proper planning when implement- spaces, low quality service may be among ing projects and to eliminate or minimize the factors that influence the quality of the negative effect that such projects can life of tourists and locals. Through prop- have on the tourism industry. We will er planning, tourism zone management use our management plans for the tour- and enforcement we will seek ways of in- ism zones in order to plan works in these creasing our quality of life. It is also our zones. We will also extend this manage- policy to encourage the tourism industry ment to core areas for the tourism in- to invest in more environment friendly dustry such as the Airport area, the Sea alternatives. Passenger Terminal area, and the Gozo Environment protection is one way of Ferry terminals areas. sustaining an economic activity and a living for many locals who depend on the tourism sector. It is our policy to move Issue 3: Develop tourism in a sustain- more in this direction and ensure that no able way to ensure an improved qual- tourism development results in the de- ity of life through the conservation and struction and upsetting of sensitive eco- maintenance of environmental and logical habitats as well as the degradation socio-cultural resources of historical-cultural resources. This tourism policy will follow the vi- Policy: sion laid out in the National Sustainable It is our policy to manage and balance Development Strategy.

39 The location of tourism establish- We will undertake a number of initia- ments is very important for the success tives to facilitate such structural reforms. and marketability of the establishment One such initiative includes the identifi- and of the sector at large. Prime sites cation of areas of investment that could have in the past been designated for tour- be undertaken by the private sector and ism purposes and should remain so, even that we would support. Another initia- if the establishment to which the land tive will be the provision of financial aid was originally dedicated is no longer in to undertake such a structural reform. operation. We must preserve the pri- This will be one of the intervention areas mary location of tourism establishments to be funded through the EU’s structural since this is part of the attractiveness of a funds, particularly through the European destination. Regional Development Fund (ERDF).

Issue 4: Structural reforms Issue 4a: Tour operator business required in tourism Our policy is to sustain tour operator Our tourism industry, particularly those business to Malta. Though major tour sectors which are underperforming, operators are consolidating their busi- needs to undergo a structural reform in ness, we will continue to work with ma- order to ensure quality assurance, in- jor and specialist tour operators which novation in our product and marketing provide business to Malta. We will seek strategies, an optimum mix of the differ- to improve our relationship with existing ent distribution channels. tour operators, not just at the level of operations but also at the strategic level. It Policy: is MTA’s responsibility particularly that Structural reforms are required in some of the Marketing and Promotion Direc- components of our tourism product, in- torate, to build such strategic relation- cluding that offered by the private sector. ships with tour operators. Malta, in such a small geographical area, can offer a great variety of activities and attractions which can be experienced Issue 5: Distribution of income and accessible in a short span of time. This is one of Malta’s competitive advantages. Policy: We will therefore aim to deepen our of- Tourism provides us with the opportu- ferings, focusing on existing types of nity to achieve a fair distribution of in- activity for improved quality and service come through the individual or collective provision. The provision of high-quality, participation of members of our society. creative, relevant and meaningful experi- Through this policy we aim to achieve a ences is becoming the most critical chal- fair distribution of income. This would lenge facing destinations. It is our policy be achieved by targeting the six areas of to make Malta competitive by encourag- specialization referred to in our policy, ing innovative ways of quality improve- by spreading tourism activity across dif- ments, rather than simply extending our ferent locations in Malta and Gozo and product lines. across different potential beneficiaries We must also address the challenge we ranging from the hoteliers to the indi- face in the mix of our distribution chan- vidual owner of a licensed apartment to nels through attracting tour operator a host family to a small retailer, and by business, independent traffic, and airlines working towards the economic participa- including low cost carriers to Malta. tion of all stakeholders.

40 Tourism Policy for the Maltese Islands Issue 6: Tourism Statistics ism, with special emphasis on the island of Gozo, shall also be undertaken. Following the successful conversion from Statistics other than those measur- the system of producing tourism statistics ing tourism volumes, such as those relat- from immigration cards to one which is ing to tourism expenditure and tourism survey based, a review of the current sys- overnights also require to be reviewed tem is considered necessary with a view with the objective of providing the re- to further improving the range and qual- quired level of detail for the industry’s ity of tourism statistics available in Malta. current requirements. Such statistics, Tourism statistics and research serve as a where applicable, are to be segregated tool for planning and evaluation. between Malta and Gozo, whilst still providing aggregated data. It is general prac- Policy: tice that all collected data is segregated It is our policy to improve the qual- by gender, where applicable. ity and depth of information available Efforts will also be made to embark on through tourism statistics and work on a process aimed at producing a tourism the formulation of tourism satellite ac- satellite account (TSA) for the Maltese counts. Islands. The initial step, that is the- car The proposed review shall be under- rying out a feasibility study for having a taken with the scope of extending the TSA, was carried out in 2004. This study range3 and improving the quality of avail- was partly funded by an EU grant. The able data, so as to lead to a more thor- TSA will provide both the public and ough understanding of the tourism phe- private sector with a measure of tourism nomenon in the Maltese Islands and to value added. The SAT is a methodology have reliable data that can contribute to based on a number of tables which pro- strategic decision making. vide an overall view of tourism as a socio- The review aims to extend the quan- economic phenomenon and a means by tity of monthly source markets of tourist which demand for tourism commodities departures and also improve the statisti- can be linked to production of tourism cal reliability of such data. This will be commodities by tourism industries. The done with the purpose of establishing a TSA tables also include a table relating to closer correlation between the data being employment, complementing the analy- generated, and the markets in which the sis provided by the other tables. Besides Malta Tourism Authority is investing. bringing Malta in line with developments Efforts will also be made to shed in most advanced tourism destinations, more light on purpose-of-visit statis- the availability of a TSA provides plan- tics in line with the segments approach ners, investors and analysts with the adopted by the Malta Tourism Authority. most advanced statistical tool available Furthermore, expanded data on type for decision-making in tourism and al- of transport and mode of booking trips lows for international comparability. shall also be sought in recognition of The Malta Tourism Authority will en- changes taking place in the manner tour- hance its forecasting techniques, to iden- ists visiting Malta organize their travel tify and assess opportunities and threats. arrangements. We can thus monitor trends and take ac- In line with developments in most tions accordingly. We will make use of in- tourist-receiving countries, efforts at ternational experts in the area in order to measuring internal and domestic tour- develop a sound forecasting methodology.

3 similar exercises must be carried on a number of subjects primarily culture. In this case possible stakeholders include NSO, MTAC, Superintendence of Cultural Heritage, Heritage Malta, MCCA, St. James Cavalier Centre for Creativity and Manoel Theatre.

41 Issue 7: Accessibility registering highest growth rates. Malta must tap into this distribution chan- Malta’s geographical reality necessitates nel keeping in mind that we are highly the existence of appropriate air links with dependent on our tourism activity. We mainland Europe and other parts of the must not jeopardise our existing tourism world. Air transport is key to Malta’s sur- business through any hasty and uncalcu- vival, for its economic and social cohe- lated decision we take, even if short term sion, for its daily requirements of trans- gains are large. We must consider long portation of cargo, movement of mail term implications. We will analyse the and freight including perishables and for profile of tourists who use low cost car- its tourism industry. Air transport is also riers and assess their demands and plan crucial for enterprises and the business accordingly. community to have access to an appro- We must balance the current interna- priate network of air travel routes to dif- tional trends in the sector with long term ferent destinations. This is important as impacts on Malta and society at large. We air travel is the only viable means of busi- must take into account the following: ness passenger transport. 1 We want to increase accessibility to and from Malta, not only for Policy: tourism but also for other eco- Government is committed to continue to nomic activities; facilitate the development of air transport 2 We want to attract new busi- networks. We will encourage the devel- ness carried by these carriers and opment of new and underserved routes. which is not at the expense of ex- We want to see an increase in air seat ca- isting business; pacity which provides the right connec- 3 We want to have a good mix of tions and schedules which make Malta air carriers and types of business accessible. We will co-operate with MIA (tour operator, independent); and it is our policy to work with existing 4 We should not become dependent and new airlines operating to and from on any one air carrier or have one Malta to increase Malta’s accessibility carrier in a dominant position; and visibility on the international market 5 We want to maintain existing air- through joint marketing efforts. lines which not only make Malta Whilst air transport accounts for accessible for our major source more than 95% of tourist volumes, the markets but also provide interlin- sea also provides an additional mode of ing traffic and connections to long transport. We will seek ways of increas- haul source markets, whilst pro- ing Malta’s accessibility through sea links viding additional services such as with Italy. cargo air services; Gozo suffers from double insularity, 6 We will adhere to the EU’s com- requiring greater attention to facilitate petitiveness and state aid regula- access between Malta and Gozo both for tions to ensure a level playing field tourism purposes and for residents. This for all airlines. will also support domestic tourism.

Issue 8: Our product offer Issue 7a: Low cost airlines and destination management

Our policy is to attract new airlines to Malta’s product offer is composed of its operate to and from Malta. International sea and coastal formations (including trends indicate that low cost airlines are sandy, rocky, cliff and harbour forma-

42 Tourism Policy for the Maltese Islands tions), its culture, its people and its land- upgrading existing beaches we have em- scapes. The combination of all these in barked on the creation of beaches in ar- such a limited land mass is what makes eas where we will not cause damage to Malta unique. the coastal stretch or to the ecosystem. We are committed to protect our marine Policy: life. The location of such beaches is im- We will continue to focus our efforts on portant and we will give priority to those deepening our touristic offer through sites which are closer to a cluster of ac- quality improvements in both our exist- commodation establishments in the lei- ing physical product and the service we sure zones. The new beaches will assist provide. This should be well presented in reducing the pressure on our natural and then communicated to potential beaches. Following the creation of beach- tourists as something truly worth explor- es, we will monitor any possible effects ing and experiencing. Hereunder we out- which our human intervention could line our policies on the different aspects have had on the coastal stretch, currents of our offer and on communicating this and marine ecosystem. to potential tourists. This is followed by The marine environment also provides our policy of co-ordinating these various us with the opportunity of exploring the elements. underwater world through diving. It is our policy to support this activity as has been a) Transport on the islands done through scuttling of wrecks and the We will continue to invest in improving setting up of a decompression chamber in our infrastructure in order to facilitate Gozo. For our tourists and the local popu- access between the different areas of the lation to enjoy diving, we must ensure that islands. We will increase accessibility to the marine ecosystems are protected, also sites and places of interest by increasing through clamping down on spear-fishing. signage and information material that We will undertake anti-pollution meas- lead up to these sites. This will help tour- ures particularly through elimination of ists using self-drive cars to locate places the outflow of sewage into the sea and the of interest more easily. We will also in- location of fish farms in areas where dam- vest more in information dissemination age can be minimised. Our seabed is also through our tourist information offices rich in attractions and wrecks, most of in order to provide more and better lit- which are of a heritage value. Our policy erature that will help tourists get around. is to ensure their protection and prevent We will continue to invest in upgrading looting from such attractions and wrecks. the public transport and provide training Together with the local diving commu- for transport operators so as to continu- nity we will develop a master plan for the ally improve the service delivery. Public diving business. A master plan for diving transport service between main tourist in Gozo is already underway. The diving zones and main sites will continue and plan for Malta will need to take this into improve depending on circumstances. account to ensure complementarity rather than direct competition. b) Marine environment Malta is proposing a number of We will continue to invest in the provi- Marine Protected Sites. A greater un- sion of services, such as lifeguards, first derstanding and appreciation is needed aid and beach cleaning for our existing from tourists and locals about the fragile beaches. We will work in order to achieve marine environments we are surrounded blue flag status for our main beaches. with. Protecting marine resources will Our beaches are saturated particularly safeguard their enjoyment for genera- during the peak summer months. Whilst tions to come. Interpretation of our ma-

43 44 Tourism Policy for the Maltese Islands rine environment can provide tourists d) Landscapes and tourism zones with interesting information and adds Malta’s landscapes are characterized by value to their stay in Malta. coastal, urban and rural settings. It is our policy to maximize the opportuni- c) Culture ties presented by such settings, whilst Malta’s cultural heritage will continue to harmonizing the historical, natural and be protected, conserved and presented urban environment. Within these set- for all to appreciate and enjoy. It is the tings, it is essential that authenticity is responsibility of the Superintendence safeguarded. The environment itself is for Cultural Heritage to ensure that an important element in the authentic our cultural heritage is conserved and tourism experience and projects should protected. Government has entrusted ensure the protection of such resources Heritage Malta with the responsibility thus adding value to the tourism prod- to manage government owned heritage uct, rather than exploited at the expense sites including our invaluable World of the environment. Heritage Sites and government owned Malta may boast of some endemic museums. species of flora and fauna that should not It is also essential to ensure cultural only be preserved but also presented to assets are valued and appreciated, espe- the visitor in a way that a greater under- cially buildings of unique architectural standing and appreciation is nurtured. value, which act as an important and Access to our countryside may lead to a unique attraction for our visitors. High new type of tourist interested in our natu- standards of presentation and conser- ral heritage and provides added value to vation for Valletta and all other walled those who already visit and comment on cities and fortifications such as Fort St our countryside. It is our policy to contin- Angelo will be a priority. ue addressing issues of land abandonment We are committed to increase physical and squatting. This will be done through and intellectual accessibility to heritage co-operation among a number of minis- sites and the arts particularly by invest- tries, foremost of which the MRRA. ing in conservation, interpretation and Countryside walks will continue to be management of sites and investment in presented to our tourists and these can artists through training, exchanges and also include bird sanctuaries. Access of the provision of performing or exhibiting paths for these walks should also be un- spaces. It is our policy to increase the el- restricted. It is our policy to reduce the ement of innovation and creativity espe- visual constraints, such as illegal struc- cially through the work done by St. James tures and improper rubble walls, along Cavalier Centre for Creativity, thus in- these paths. creasing the local content and value add- The management of our destination, ed. We will also invest in order to increase in its totality, must fall in line with the the interaction between artists and the National Sustainable Development Strat- community and to increase education egy. Tourism will contribute to this strat- through culture by encouraging school egy to ensure sustainability for the benefit visits to places of cultural heritage, pro- of tourism itself. The strategy highlights viding information on our sites and mu- the fact that tourism infrastructure has seums and by involving more artists in grown rapidly over the years, with the education and holistic formation pro- consequent impacts on fragile environ- grammes. The Ministry is also working ments particularly in coastal locations. on a number of cultural related projects The conclusions of the carrying capacity that can serve as centres for attracting study carried out by the Malta Tourism foreign students and artists. Authority (MTA) need to be translated

45 into policy actions. Activities with high environmental impacts should as far as * List of designated urban localities: possible be diminished if not completely Southern Harbour – Valletta, Birgu, aborted. Isla, Bormla, Fgura, Floriana, Marsa, Paola, and Tarxien e) Tourism in designated rural areas Northern Harbour – Birkirkara, Gżira, The small size of Malta, the extreme high Ħamrun, Msida, Pembroke, Pietà, San population density and considerable built Ġiljan, Santa Venera, Sliema, Swieqi, Ta’ Xbiex up landscape and limited natural habitats Western – Balzan highlight the importance of careful management of the rural areas as a national ** List of designated rural localities: resource. Built and natural heritage make Southern Harbour – Żabbar, Kalkara, an essential contribution to quality of Luqa, Santa Luċija, Xgħajra life, giving context and coherence to the Northern Harbour – Qormi, San Ġwann present while acknowledging the contri- Southern Eastern – Żejtun, bution of the past. Malta’s heritage is var- Birżebbuġia, Gudja, Għaxaq, Kirkop, ied and rich in many aspects and requires Marsascala, Marsaxlokk, Mqabba, immediate attention and significant in- Qrendi, Safi, Żurrieq vestment. Western – Mdina, Żebbuġ (M), The impact or urban sprawl in past Siġġiewi, Attard, Dingli, Iklin, Lija, Rabat (M), Mtarfa decades has influenced the extent of ur- Northern – Għargħur, Mellieħa, ban fringes or the transitional area be- Mġarr (M), Mosta, Naxxar, San Pawl tween urban and rural. Given that these il-Baħar, vary from one location to the other it is Gozo and Comino – Rabat (G), difficult to establish thresholds to iden- Fontana, Għajnsielem & Comino, tify their extent due to their diverse Għarb, Għasri, Kerċem, Munxar, Nadur, Qala, San Lawrenz, Sannat, characteristics. The 1990 Structure Plan Xagħra, Xewkija, Żebbuġ (G) earmarked specific areas for urban development; however some land within the limits to development is still used for ag- tricts namely Northern, Western, South ricultural purposes, whilst new built-up Eastern, Gozo and Comino Districts. zones and urban areas are still scattered The implementation of integrated outside the designated development zone development plans for local rural ar- (ODZ) in some parts of the countryside. eas through the drawing up of Local Ac- Rural areas are defined as having a tion Groups (LAGs) should serve as an population density lower than 5,000 per- instrument for the implementation of sons per square kilometre – in line with bottom-up, territorial and integrated ap- the definition of rurality established in proaches to pursue local development. the Rural Development Plan 2004 – 2006 The advantage of bottom up approaches – as having not less than 10% of the area can mobilise resources for the develop- of the locality agricultural land, and as ment process. This happens because of having not less than 35% of the locality the availability of the local knowledge of outside development zone. Thus there the resources available which will assist are 21 urban localities* found on the is- in the ownership, commitment and full land of Malta, mainly in the Northern dedication to the projects. This approach and Southern Harbour Districts. The re- can also generate a sense of local iden- maining 47 rural localities** where agri- tity which will narrow village bounda- cultural activity, countryside recreation ries, whilst increasing the organisational and nature conservation are practiced are capacity of rural communities. The Na- mainly located in the remaining 4 Dis- tional Rural Development Strategy em-

46 Tourism Policy for the Maltese Islands phasises on the importance of agricul- agriculture may compete on the basis of ture as being particularly important in quality but not on the basis of quantity shaping the rural landscape and is thus of the produce that it produces, and will a major contributor to the environmen- need to establish speciality niche markets tal character and quality of the rural for a number of products. This entails a landscape. The provision of food from major change in the marketing and the agriculture imparts a degree of self-suf- processing approaches of the main ag- ficiency to the Maltese population, and ricultural commodities in Malta, whilst provides full or part-time livelihood for taking into consideration the very short a significant number of people, contrib- supply chain from producer to consumer, uting to the rural economy as well as to as well as the additional market of around the maintenance of rural communities. 1.2 million tourists a year and the poten- It is also an integral component of the tial offered by niche markets. cultural heritage and a crucial backdrop Malta needs to offer differentiated, for the tourism industry, a cornerstone of high quality produce that promotes the Malta’s economy. Agriculture has multi- distinctive Maltese nature of the produce ple functions and a value beyond that of being sold. The promotion of the Maltese economic production. This is also being production through the use of quality recognised in the Government’s emer- identification marks will require coop- gent policy for agriculture and rural areas erative marketing techniques primarily through the current Rural Development amongst producers and agro-processors. Plan and in the National Strategy Plan for This, coupled with improved educa- Malta which aims in seeking to encour- tional and marketing strategies that fo- age a multifunctional agriculture within cus on sustainable practices, care for the a wider framework for integrated rural environment and landscape, apprecia- development to achieve the sustainable tion of traditional delicacies and artisan development of rural Malta. methodologies, cultivation of indigenous Currently the traditional specialities, varieties and their products, and an all- crop varieties and skills have been pro- round quality orientation that is increas- gressively neglected as a result of exces- ingly sought after by more demanding sive focus on a limited variety of ‘quan- consumer markets, both current and po- tity crops’ with a widespread toleration tential, locally and internationally. of short term practical techniques, in Agriculture in Malta has a multi-func- contrast to other Mediterranean delica- tional role due to its role in maintaining cies and practices that have been suc- the countryside and rural landscape and cessfully marketed as gastronomic and in enhancing the tourist potential of the agri-touristic attractions in their respec- area. Agriculture is also an integral com- tive regions and localities. Till recently ponent of our cultural heritage. There is there were no attempts to market Mal- thus a need for the development of en- tese produce as a distinctive brand or to vironmentally-friendly agriculture as an market on the basis of the guaranteed essential element of a more pro-active quality of Maltese production. Quality tourism product. standards are virtually non-existent for Land development has an effect on Maltese agricultural produce. There is a biodiversity, directly through alteration, heavy dependence on traditional whole- fragmentation and loss of natural eco- sale markets and little effort to identify systems, habitats or species, or indirectly and market produce through new mar- through increased interference with en- keting channels resulting mainly through vironmental media through air, soil and poor collaboration between farmers and water, noise and light pollution and the other stakeholders in the sector. Maltese vicious cycle effect of the ensuing eco-

47 logical imbalances. As in most Mediter- 3 sliema, St Julians, Paceville; ranean countries, many of the plants and 4 Bugibba, Qawra, St Paul’s animals in Malta have evolved alongside Bay (including Mellieha and traditional agricultural practices. From Xemxija); the point of view of nature conservation, 5 Gozo; therefore, these traditional agricultural 6 Coastal areas. practices (such as rubble wall terracing) 7. special focus on other areas with are important to the maintenance of ru- emphasis on authentic village ral biodiversity. cores, Special Protected Areas It is also our policy to ensure and (SPAs) and Special Areas of encourage a better quality of life in ru- Conservation (SACs) ral areas and diversification of the rural economy through the implementation of It is our policy to provide particular rural tourism activities. Rural tourism al- attention to these zones. Within these lows the creation of an alternative source tourism zones, which are also leisure of income in the non-agricultural sec- areas, the immediate priority will be tor for rural dwellers. The added income given to ensuring that basic facilities from rural tourism can contribute to the within these zones are available, well revival of traditional folk art and handi- presented and maintained. These basic crafts. It is an ideal and natural method of facilities include a clean urban environ- rural and urban economic exchange. ment, upgrading of waste management Measures to diversify the rural econo- infrastructure, beach cleaning (where my may comprise diversification into non- required), availability of public toilets, agricultural activities; support for the crea- proper signage, improved landscap- tion and development of micro-enterprises ing, interpretation of key sites and the with a view to promoting entrepreneurship enforcement of regulations (including and developing the economic fabric; en- regulations relating to tourism serv- couragement of tourism activities. ice providers, littering regulations). Measures to improve the quality of Other key tourist areas such as the life in the rural areas, comprising; basic Malta International Airport, Malta Sea services for the economy and rural popu- Terminal, Ferry terminals (Cirkewwa lation; village renewal and development and Mgarr), will also be given attention and conservation and upgrading of the because of the daily traffic of tourists rural heritage. passing from these areas. Specific management plans will be developed with the respective operators. Issue 8a: Management of tourist areas Each tourism zone has a particular characteristic which should be empha- Policy: sized as well as a unique role to play in the Malta’s tourism offer will be managed Maltese Islands’ overall tourism product. through the tourism zone policy. Such Each zone should be presented not as a tourism zones will be clearly delineated substitute for another zone but comple- and legislated for. mentary to all other zones and in this re- The tourism zones that have been gard development should be consonant identified are with the role identified for each particu- 1 Valletta and the Grand Harbour lar zone. This is intended to encourage area (including Floriana, The tourists to visit and experience the differ- Three Cities and Kalkara); ent zones during their stay in our islands. 2 Mdina, Rabat, Dingli (including This will help us achieve a fairer distribu- Ta’ Qali); tion of income and increase employment

48 Tourism Policy for the Maltese Islands throughout the islands whilst alleviating the basis for a product that is ideal for some of the pressure off the more visited the low season would assist in contrib- sites and locations. uting to the mitigation of the seasonality To date there are no established problem without affecting negatively the footpaths that direct users along routes rural environment. By offering an alter- where one can enjoy the countryside native to a non-mass tourism product, and views without damaging the envi- initiatives would widen the local tourism ronment or trespassing on private land. product offer. Additionally, a fair distri- Since rural areas particularly those along bution of income would be envisaged the coast are sought after by locals and since similar initiatives would involve the tourists alike for their landscape value, local community thus contributing to- the absence of footpaths may cause con- wards fair economic growth. flicts with farmers when hikers and walk- Independent travelers and visitors ers pass through the fields. A more ho- participating in these walks would be listic approach is currently being sought encouraged to reap the benefits of the for whereby Malta’s rural assets could be rural experience through fruit picking, utilised in a sustainable manner. wine processing and olive picking activi- The rural environment offers an op- ties. It would also help to maintain the portunity to explore further the sustain- entrepreneurial stability and profitabili- able use of this resource to enhance the ty of traditional crafts such as lace-mak- tourism offer and address the demand ing and the related local produce as well and opportunities for open air recrea- as in other important artistic human action in natural and man made landscapes tivities relating to the art of stone-mak- meeting the residents’ needs for relaxa- ing, production of wine, oil and honey. tion as well as the link to our cultural Such initiatives would undoubtedly identity. This would also assist in provid- provide the opportunity for vast local ing better awareness of the local rural community areas to reveal the poten- resources leading to their protection and tial of local produce and craft making. conservation. Through these rural activities and the Project proposals aiming at the set- marketing platform provided for such ting up of walking trails and small scale rural activities the growth of traditional infrastructural interventions could assist niches such as honey production, oenol- in the improvement of accessibility in ogy and oil making, liquors production, semi-rural, rural and natural areas. These lace making and other traditional trade proposals could target the ‘relational is envisaged. tourist’ whose main aim is that to ac- These initiatives would also assist in tively experience his vacation by enjoying the enhancement of niche market devel- the beauty of the area, the culture, and opment for trekking and rambling activi- traditions, the desire to relax and be en- ties; to assist the agricultural sector, its tertained and the need to interact. There produce and the local rural activities in is also an emphasis on the need of inter- the areas; the contribution towards fairer action between the traveller/tourist and distribution of income; reduction of the the local people providing tangible and seasonality of tourism demand and fur- intangible achievements. These activities ther assist rural economies to grow and could further seek to identify the pull fac- rural cores and villages to attract small tors that can strengthen rural tourism in scale tourist stays. Malta whilst ably responding to the cur- It is our policy to identify the impor- rent demand patterns and to the increas- tant niches in the different zones and di- ing trend towards independent travelling. rect investment accordingly. We will also The identification of initiatives that form formulate and implement a management

49 50 Tourism Policy for the Maltese Islands plan for each zone. The plan will identify tracted low ratings from tourists for the the investment required, service needs of level of service provided. the zone, infrastructural development, We will continue to invest in our conservation and accessibility issues. younger generation through increasing Each zone has a particular role to play in their awareness of career and job oppor- the country’s tourism activity, whilst at tunities in tourism emphasizing the im- the same time being a residential zone. portance of proper service provision. Enforcement is key to success. Self- These efforts will be complemented regulation by the industry will allow the by a strong regulatory arm responsible competent authorities to focus more for ensuring that standards are continu- closely on hot spots which require in- ously adhered to by the private tourism creased enforcement. service providers who will be encouraged to move into quality assurance. Government’s efforts must be comple- Issue 8b: Service provision mented by those of the private sector which through our people is expected and encouraged to: • Invest in staff development and Policy: training; The tourism industry is basically a serv- • award best employees for their effort; ice industry. It is our policy to continue • opt for the provision of quality giving particular attention to ensure that service and establish partnerships visitors to our islands get the best service with service providers offering a possible. Our policy is to encourage tour- quality service. ism service providers to provide a proper service. The provision of a professional service combined with a hospitable at- Issue 9: Image/Perception/brand titude can contribute to our competitive building advantage. We want to reduce unemploy- ment by retaining staff and providing the Malta must compete with major tourist necessary support structures and work destinations such as Italy, Spain, France, patterns, and by training and retraining Turkey and Tunisia in the Mediterrane- personnel in the industry in order to fit an and also with long haul destinations, in the new working scenario where hav- given that these are becoming even more ing a positive experience through inter- accessible. Malta’s image overseas needs action with the destination’s population to be strengthened. is becoming increasingly important. This will result in an improvement of the in- Policy: dustry as the quality of service delivery It is our policy to create the right image is increased and as changing demands and perception of Malta in our overseas facing the industry are met and satis- markets. It must be an image based on fied. Tourism provides both full-time a promise which we then deliver to our and part-time job opportunities. It is visiting tourists. For this purpose, our our policy to maintain jobs whilst also strategy is to build a brand for Malta over seeking ways of creating new and better the coming years in our overseas markets jobs. Whatever the type of job, whether whilst adopting initiatives which will en- directly or indirectly related to tourism, sure the delivery of our promise. We have it is essential that a professional service already commenced work on this exer- is provided. It is our policy to focus our cise and we have identified our three core efforts for improving service provision values as being: hospitality, heritage and on those sectors which have regularly at- diversity. This message will continue to

51 be strengthened through our marketing achieved unless synergies are created initiatives. within the cluster contributing to and Gozo will be marketed internation- forming that segment. ally as a unique rural destination offering The role of the MTAC and the MTA a distinctive experience where visitors is to develop the way forward for the can get away from it all, be in touch with different segments. This strategy will unspoilt nature while having the possibil- be mirrored in the management plans ity to engage in a number of relaxing ac- for the zones (which plans will identify tivities and integrating with the Gozitan work needed and responsibilities). The community. The potential of domestic Product Planning Directorate and the tourism for Gozo will also be tapped in Regulatory Directorate will develop order to ensure a steady flow of Maltese stronger links with their counterparts in visitors to the islands not only during the other ministries in order to see the im- peak season but especially in the lean and plementation of projects. In our market- shoulder months when activity on the is- ing strategies we will increase the partici- lands diminishes. pation of the private sector by devising We have identified a number of seg- common marketing campaigns. The pri- ments for which Malta can be marketed vate sector will be expected to increase as a result of an existing product offer. its contribution through in kind services. These segments complement each other The segments can be divided into the and MTA is therefore responsible to not following: only market Malta for these individual segments but to create synergies among 1. Culture – promotion of this seg- these segments. Such synergies should be ment focuses on the totality of ex- reflected in the marketing plan. periences in Malta and Gozo with We will develop an e-business strat- particular attention dedicated to egy for the industry. We will develop the our way of life incorporating our use of a destination management system cultural heritage, our contem- (DMS) for destination marketing, pro- poary arts, our history, our tradi- motion, information dissemination and tions and calendar of events. This reservation of products and facilities segment inevitably contributes to while supporting travelers to create their all the other segments. personalized destination experience. We 2. Language learning and education – will assess the potential of new media promotion of Malta and Gozo as a such as m-commerce to allow visitors place where to learn English as a the possibility to purchase products and second language, where to organ- services. We will exploit the use of geo- ise student groups’ visits as part of graphical information systems to relate their secondary or tertiary educa- information with the geographical location and as a centre of excellence tion of the visitor. for specialized education in the cultural field; 3. Sports – promotion of Malta and Issue 9a – Market development Gozo as a venue for practising sports or acting as a spectator. Each tourism segment that has been 4. MICE – promotion of Malta and identified requires specific product el- Gozo as an attractive destination ements. MTA must ensure that there for holding conferences, meet- is close synergy between destination ings, exhibitions and incentives; management and the requirements of 5. Cruise - promotion of Malta and each segment. Segmentation cannot be Gozo as an attractive destination

52 Tourism Policy for the Maltese Islands for cruiseliners. We will strive increase visibility in new source markets to make Malta a home port for a (including long haul destinations). The number of cruise liners. Ministry will support: 6. Growth – promotion of Malta and 1 Strategic alliances with Tour Gozo for other established or Operators – We will forge strong- emerging niches such as cruise er alliances with tour operators in and stay, short and city breaks, order to increase visibility of the wedding holidays, health and islands. We will also work with wellness, event related travel and the strategic people of the tour film. operators in order to ensure that our future tour operating policies MTA will continue its international reflect the needs of tour operator’s marketing function through its leisure whist ensuring that we are always and Tour operating strategy – with the in the forefront in tour operator’s promotion of Malta and Gozo as islands brochures and promotion initia- in the Mediterranean with a wonderful tives. climate, attractive sea and beaches and 2 Increase seat capacity - The a safe place for entertainment or family MTAC will continue with its ef- related activities. This strategy focuses forts to increase seat capacities mainly on one of the major tourism dis- to Malta particularly through the tribution channels targeting the summer introduction of low cost flights to sun and the winter sun holiday maker. Malta and the forging of stronger MTA will also continue the promo- alliances with national airlines. tion of Malta’s sister island Gozo as an experience where a number of activities can be engaged in and/or experienced. Gozo Gozo’s characteristics of a quiet ambience, a greener and more natural envi- Gozo has the potential to be marketed as ronment, a more rural community, point a unique rural destination. The following to Gozo’s potential as an ideal rural des- components of its tourism offer may be tination. This provides Gozo with a desti- highlighted in MTA’s promotional strategy: nation’s identity and could form the basis • rural Setting; of our marketing strategy for Gozo, both • Culture; for international and for domestic tour- • relaxing ambience; ism. • Gastronomy; What follows is a more in-depth look • Meetings, incentives, and small at the different marketing functions. conferences in a rural setting; • english Language Learning; • sports – mainly diving, water Tour Operating sports, adventure sports, trekking and walking. We must continue with our efforts to keep our share of the market, though we Gozo will be marketed as a destina- recognise that tour operators that repre- tion offering a unique experience where sent the major source of business in the visitors can get in touch with nature segment are consolidating and that their while having the possibility to engage in share of the market is slowly decreasing a number of healthy or relaxing activi- due to other distribution channels. The ties. The potential of domestic tourism MTA must strengthen Malta’s position for Gozo will also be tapped in order to in the main markets and work in order to ensure a steady flow of Maltese visitors to

53 the islands not only during the peak sea- cial responsibility and will forge son but especially in the lean and shoul- stronger alliances with stakehold- der months when activity on the islands ers who will re-invest in the com- diminishes. munity’s culture and the natural As in the case of all segments, it is es- environment since these invest- sential that the product offered is truly ments not only benefit the Gozo attractive and marketable. For this pur- community but also the tourism pose, a number of initiatives will be un- industry. dertaken to further improve Gozo’s po- 5 Business – Gozo should attract tential as a tourism destination. small but high value added confer- 1 Accessibility between the Is- ences and incentives. Investment lands – We will facilitate access in conserving the natural envi- between Malta and Gozo. The ronment, in cultural and sports investment in the Cirkewwa and activities will increase the attrac- Mgarr terminal reflects govern- tiveness of Gozo as the ideal CIT ment’s commitment towards pro- destination. viding a more efficient sea link. 6 Stop over cruises – We will in- 2 Services – We will invest in the crease accessibility to Gozo also development of the human re- for cruise liner passengers by cre- sources in Gozo by working with ating the necessary, non-perma- the Ministry for Education, Youth nent, infrastructure that will en- and Employment and the Ministry able stop over cruises. for Gozo in order to inject further 7 English Language Learning and investment in the ITS branch in educationals - We believe that Gozo. Continuous development of Gozo is a quality destination for all persons working in the industry English Language Learning being (full and part timers) is essential. safe, quiet and having a number of 3 Standards for self-catering ac- established cultural activities. In commodation - We will revise line with its policy for Gozo, the the standards of farmhouses and MTAC believes that EFL on Gozo other self-catering establishments must not focus on the quantity of in Gozo. We will also support schools but the quality of service investment aimed at upgrading and tuition delivered especially existing farmhouses, maintaining for the adult market (including their unique character, into luxury Business English) and one to one and up-market farmhouses. This courses. Once again such language will enable to re-position Gozo as learning is in a unique location, in an up-market destination. a rural setting. Gozo’s geographic 4 Energy friendly measures – Our formations and form of develop- commitment is to build a sustain- ment can attract secondary and able industry that respects the tertiary student groups travelling natural environment by not only as part of their educational cur- contributing to the development riculum. Gozo would be ideal for of the economy but is also envi- geography, sociology and tourism ronment conscious. We are com- students. We will also increase mitted to support energy friendly Family Travel for EFL courses in measures aimed at reducing in- Gozo. Gozo’s accommodation fa- frastructural pressures and fuel cilities, relaxed lifestyle and rural consumption. The Ministry is a setting make it ideal for increasing strong believer in corporate so- this niche.

54 Tourism Policy for the Maltese Islands 8 Sports – Diving in Gozo is already mestic tourism especially during an established sporting activity. the winter months. At present Support in order to increase ac- Gozo is facing a lot of competi- cessibility to diving sites, on-site tion from hotels situated in the information and scuttling of dive north of Malta which are offer- wrecks will continue in the coming attractive prices for weekend ing years. Gozo is also ideal for breaks making it more affordable trekking and walking holidays. to spend a weekend in a hotel 9 Culture - Ggantija is the oldest than in a self-catering apartment / free standing monument in the farmhouse in Gozo. We will keep world and is located in Gozo. This working in order to increase the World Heritage Site has the po- share of Maltese who cross over tential to attract not only the day- to Gozo during the winter months visitors but also those who are par- for a weekend break. MTA may ticularly interested in archaeology utilize a portion of its Gozo budg- and history. Investment in a bet- et for this purpose. Government ter quality life for our population will keep capitalizing on current and enhancement of our cultural events and activities in order to portfolio will increase the attrac- increase the attractiveness of tiveness of Gozo as a mature tour- Gozo during the winter months. ist destination. Gozo should iden- The domestic tourism strategy tify culture niches which it can will aim at increasing awareness of positively exploit for the benefit of Gozo, its activities and attractive- the tourism industry. Investment ness. by government and the private sector should be primarily in- Culture jected in the identified areas. The Culture has the role of defining and differ- Ministry for Tourism and Culture entiating between different peoples. The understands the necessity of in- Ministry for Tourism and Culture while creasing physical and intellectual being fully aware of the role of tourism in accessibility for cultural activities respect of the local economy, and whilst and will support investment that giving its full support for the advance- will ensure accessibility for all in- ment of the industry, is also aware that cluding interpretation, investment tourism can be a foe as much as a friend in cultural industries, physical ac- to culture in matters of development. In cessibility to museums and places order to minimise damage, initiatives will of interest, and investment in ar- be undertaken with the utmost respon- tistic productions. In line with the sibility towards our culture, our natural national cultural policy we believe environment and our social fabric. that the cultural and tourism sec- Culture tourists vary from tour- tor must combine forces in order ists who visit a museum, site or attend a to find creative ways of presenting cultural event or activity such as a per- the cultural product with more in- formance whilst on a holiday, to those volvement of artists for developing who visit the island for a particular cul- interpretation facilities and com- ture related activity or trail. Malta, for a plementary utilization, upgrading number of years, has aimed at increasing and marketing of Malta’s heritage the number of tourists who visit the is- sites. lands for culture related reasons. 10 Domestic tourism – Gozo has a Our cultural heritage sites are a means lot of potential for increasing do- to attract tourism and increase visitor

55 56 Tourism Policy for the Maltese Islands spend. Research indicates that those all family members with particu- whose main purpose of visit is leisure lar attention being given to young (targeted through the leisure and tour children. operator segment) visit particular cultur- • Heritage and the Arts – The Minis- al sites during their holiday. For this rea- try acknowledges the importance of son the Ministry believes that the MTA’s all aspects of our culture and as such culture segment should complement and believes that MTA should focus on strengthen the efforts undertaken by attracting tourists for all aspects of the other segments. The leisure, MICE, culture: history, crafts, tradition and English language learning, growth and performing and visual arts. Targets Gozo segments are all highly dependent for this segment should be more fo- on Malta’s cultural product. The culture cused, attracting more specialized segment division will also focus its atten- and higher spending tourists who tion on attracting tourists that visit spe- visit the islands either for a par- cifically for culture related issues (events, ticular trail (e.g. on the footsteps of visits of sites, culture studies). St. Paul) or for study or specialised The AMT C will give its full support visits. The MTA culture segment to the development of cultural tourism will also assist government’s culture mainly by: policy which has identified particu- • Management –The Ministry will lar culture niches (such as music support the work of entities who and visual arts) and is working in will invest in conservation of sites order to further develop them. The / museums or artistic activities. culture segment within the MTA The Ministry will also encourage will be the marketing arm of these private sector investors who are entities and attract artistic students willing to invest in these areas as and musicians to Malta. MTA will long as the principle of conserva- work with the Superintendence of tion is adhered to. Cultural Heritage, Heritage Malta • Accessibility (physical, infor- and relevant authorities in order to mation and intellectual) – We market Malta’s world heritage sites. believe that each visit must be a It is also our policy to establish unique experience. For this rea- the right structures which would son the Ministry, through the en- place Malta on the international tities falling within its remit, will map of specialized education in strengthen its effort to transform the field of culture, focusing par- sites and events into authentic ticularly on music and art. With experiences for both locals and internationally reknowned names foreigners. The AMT C will sup- in these fields, we will have a plat- port projects aimed at improving form to market Malta for such accessibility (physical, informa- purposes in the international mar- tion and intellectual) for all en- ket. suring that equality issues (espe- • events – Culture interested tour- cially gender, ethnicity, disabled ists visit a number of places for persons) are taken into consid- short stays and for particular eration. The Ministry is also a events. The Ministry believes strong believer in the capacity of that Malta has a portfolio of cul- children and the role they play in tural activities which can serve as the development of tomorrow’s a tourist attraction. The Ministry society. For this reason we believe will give its full support to entities that each project must cater for in order to increase the quality of

57 events and will support private we will intensify efforts to increase enterprises willing to invest in numbers during winter. We will such activities. therefore encourage private sector efforts aimed at attracting more We must work to ensure that Gozo students during the winter months. and the culture segment link with all the • Increase quality of service in other motivational segments. Such syn- English Language Schools – ergies between segments must be further The Ministry will support4 private strengthened. sector efforts5 to improve quality of instruction delivered at EFL schools and quality of programmes English Language Learning and organized. Start-ups in this mar- education ket should seek to provide differentiated and specialised language It is our policy to develop Malta into a learning, in order to be able to destination where different age groups compete locally. We will support can undertake courses in various fields, quality initiatives undertaken by including in languages. the schools which aim at increasing the number of students coming The Ministry, through the MTA, will: over in the shoulder months. Par- • Work closer with the EFL Moni- ticular attention should be given to toring Board – The EFL moni- the development of the adult mar- toring board is responsible for ket and specialised courses aimed the EFL schools. This board will at attracting a more mature and develop monitoring criteria which high spending clientele. In order to will check whether tuition is be- increase the level of courses we will ing delivered according to profes- also facilitate accessibility to places sional standards. The board will of cultural interest. Synergies be- increase the number of school tween language schools and sports visits (visits will be conducted clubs will also lead to enhanced ex- without prior warning to schools). periences for our visitors. The board will assess schools and • Ensure value for money – We take decisions on the operation believe that we should capitalise of the schools accordingly. Re- on natural resources and continue sults of these schools’ visits will be investing in our service in order to communicated to the Ministry of increase quality and service stand- Education, the Ministry for Tour- ards. TheE nglish Language sector ism and Culture and the MTA on employs a number of part-timers, a quarterly basis. Monitoring will summer employees and higher- focus on the level of English being secondary and university stu- taught, courses delivered and am- dents. While supporting this, the bience in schools, amongst other Ministry believes that much more matters. attention and training should • Tackle the issue of seasonality – be given to EFL employees. The While we should continue to at- Ministry, in collaboration with tract the current volumes of EFL the Malta Tourism Authority, will students during the high season, develop a code of ethics for the

4 support does not necessarily mean financial aids. 5 felTOM has already introduced the Accreditation Scheme which aims at improving quality amongst its members. Such initiatives should be encouraged and extended to all EFL schools.

58 Tourism Policy for the Maltese Islands English Language sector in order helps them sustain themselves to ensure that proper behaviour but enables them to practise their is manifested by EFL employees. English. Government will analyse The MTA will also support the possible impacts that this niche EFL sector by organising annual has on the tourism sector and the training courses for EFL employ- economy and act accordingly. ees. Training aimed at teachers, • Support host families – Host group leaders and events organis- families are an important aspect ers will give detailed information of the EFL experience in Malta. (including legal responsibilities) Host families provide safe accom- expected from these employees. modation for students giving ease Quality assurance will be en- of mind to parents at home. The couraged by the Regulatory di- Ministry, through MTA, will sup- rectorate within the MTA. The port initiatives aimed at instigat- MTAC and MTA will work with ing more families to host students. the MEYE through the EFL Board The AMT will invest in training in this direction. for host families. The Regulatory • Invest in English plus courses – directorate of the MTA will also In view of this the MTA will de- strengthen its support to schools velop stronger links with Malta so as to reduce illegal hosting. Enterprise in order to facilitate • Ensure safety – The Ministry visits for interested EFL business will work more closely with the students to visit local industries. Ministry for Justice and Home Af- • Ensure accessibility –Asian and fairs and the Police department South American markets are in order to increase safety in the major growth markets that need streets especially in entertainment to be tapped. We will therefore areas such as Sliema, St. Julians, strengthen our efforts in these Paceville and Bugibba. markets. The MTA will study the • Increase connections between potential of these markets and zones – The Ministry will work upon the results of such stud- closely with the Ministry respon- ies will increase its marketing sible for transport and the ADT in long-haul destinations. The in order to ensure frequent bus MTAC will continue to ensure connections for the main tour- flight connections between major ism zones and direct connections European airports and Malta. The between different zones in Malta MTAC will also strengthen ties and Gozo. The AMT will also with the Ministry for Foreign Af- continue its training programmes fairs and the Ministry for Justice for transport operators. and Home Affairs, particularly the • Promote Gozo as an EFL desti- Police Immigration Unit in order nation –In line with its policy for to facilitate the issuance of visas. Gozo, the MTAC will direct its ef- We will issue student visas for the forts to ensure that EFL on Gozo duration of the course they will be focuses on adult market (Business following, but not exceeding one English), family travel for EFL and year. one to one courses. • Work and Study experiences – • Tapping of new markets - MTA Many EFL students, especially and the private sector will carry those staying long periods search out the necessary studies in order for a part-time job that not only to assess which new markets can

59 be tapped for this segment. Pro- develop an IT business strategy motion in these segments should aimed at increasing the number only be considered if the neces- of conferences and meetings espe- sary budgets are available and will cially in view of the possible Smart be effective enough to seriously City investment. The MTA, in col- tap the market. Studies assessing laboration with Malta Enterprise the success of any campaigns will will develop an investment strat- be carried out. Decisions whether egy aimed at capitalising on these to continue with these marketing thematic conferences in order to efforts or whether to tap new mar- increase exports and additional kets will be taken following the investment on the islands. results of these scientific studies. • Increase theme specific asso- ciation annual meetings – The It is our policy to develop Malta as a cen- MTA (in collaboration with Malta tre of excellence for specialized education in Enterprise) will work with multi- the cultural field. For this purpose, we will national companies that have an facilitate and invest in the appropriate struc- operation base in Malta in order tures required to set this up. to attract annual conferences of specific associations. AMT will assist local companies and organi- Meetings, Incentives, Conferences and sations which are members of in- Exhibitions (MICE) ternational associations to attract more conferences to Malta. Such Conference and Incentive travel is one of assistance should particularly be the backbones of the local tourism indus- made in the form of placing bids try. Government will: for hosting the conference. Such a • Ensure quality leaps-DMCs are system should particularly target encouraged to improve the qual- bids for multi-national and Euro- ity of the service offered. Studies pean Commission conferences. carried out by the Malta Tourism • Increase of exhibitions and Authority show that there is a big product launches – tap on the discrepancy between operators in potential offered by exhibitions the same sector and that invest- and product launches. ment in better service delivery, • Improve intangible services – increased efficiency and above all CIT delegates expect the highest else innovation is highly lacking. service delivery. The MTA In- • Improve its marketing efforts dustry Human Resource Devel- for this segment - MTA will de- opment Unit must identify gaps velop highly professional tools for in service quality. Joint efforts this segment and provide services between the private sector and similar to those provided by our this unit within the MTA must competitors’ conference bureaux. ensure that training in service de- • Increase focus on pharmaceuti- livery improves. Service delivery cal and IT conferences – In line must improve throughout from with government’s investment airport personnel, internal trans- policy, the Malta Tourism Au- port operators, hotel employees, thority should dedicate some of catering staff, and conference and its promotion in order to increase incentive service providers. CIT pharmaceutical conferences and delegates pay a high price in re- IT related conferences. MTA will turn for a quality service. They

60 Tourism Policy for the Maltese Islands are also potential return visitors The Ministry, together withA MT ’s thus services received while on a product planning division will come up conference are the best promo- with a management plan for the different tional tool to make them return zones where the interests of the segment for a holiday. are developed. • Invest in innovative events – the Ministry for Tourism and Culture, Sports Segment through its various entities, has already invested in a number of high Diving – quality events which have proved The Ministry recognises the importance to be an attraction for visiting of the diving sector and will support: tourists. The private sector, on • Quality leaps – Investment the other hand, has complement- should not be targeted towards ed this by investing in a number of increasing the number of schools high level events, most of which offering similar services but to- are now becoming part of the an- wards increasing the quality of nual calendar of events. We will service delivered. continue supporting their invest- • Enforcement – The Regulatory ment. We will do this by: directorate of the MTA will con- • retaining an element of innova- tinue its efforts to stop illegal div- tion; ing operations. • Where possible make use of au- • Reduce seasonality - We believe thentic local products; that we can increase the number • disseminating timely informa- of diving enthusiasts during the tion on forthcoming events ( at shoulder and winter months. The least one year in advance so that Malta Tourism Authority Sports it can be marketed overseas by Segment, whilst attracting divers the MTA marketing and Pro- for the summer season, must fo- motion Directorate, DMCs and cus its attention to increasing the other operators) number of divers in the shoulder The Ministry will also work with the dif- and winter months. ferent entities falling under its jurisdic- • Support development of services tion to develop more events involving towards a more specialised and local arts and crafts. Events and sites personalised diving service. will be made more accessible to locals • Product improvement - The and foreigners alike and special atten- Ministry will support product de- tion will be paid to the needs of CIT velopment that will help increase delegates (e.g. offering alternative open- access to diving sites if this devel- ing hours or reserving seats against pay- opment does not have a negative ment). effect on the natural environment • Investment in VIP facilities – of the area. Accessibility includes The CIT sector demands high paths into the sea, information quality service throughout the billboards, security at dive sites whole stay. The Ministry supports and health and safety measures. initiatives that enhance VIP facili- • Wreck diving - One of the biggest ties at the points of entry and exit attractions for divers is wreck div- (airport and port) such as faster ing. The Ministry will continue check-in services, baggage han- supporting the sector by facilitat- dling, and restaurants offering lo- ing the scuttling of wrecks. cal cuisine. • Protection of the sea bed – We

61 62 Tourism Policy for the Maltese Islands must constantly take care of the the possibilities of getting inter- sea bed if we want this niche to national teams and professional flourish. The Ministry will take an sports persons to train or compete active role in government discus- in Malta. sions that might have an impact • Watersports – Elements of this on the seabed in order to ensure sport tend to be very seasonal but protection of our natural herit- popular with the summer visitors. age. The Ministry, through the The Ministry will continue sup- Superintendence of Cultural Her- porting these initiatives. itage and Heritage Malta, will also • Rock climbing / trekking – In- commission studies in order to terest for this sport is increasing. produce an inventory of underwa- We believe that Gozo has a lot ter heritage areas. Plans for their of potential in this regard which conservation and protection will can be exploited. The Ministry also be developed. will support private sector investment in these areas. The AMT Other sports – sports segment must also work to The Ministry will support: increase the share of visitors who come to Malta (with particular • Summer and winter camps – emphasis for Gozo stays) for rock The Ministry believes that we can climbing and trekking. increase the share of youngsters • Yachting – Government has in- who visit Malta during the sum- vested hugely in yacht marinas in mer for training purposes. The the last years. The MTA will con- MTA must increase its promo- tinue with its efforts to promote tional activities with international Malta as a yachting destination, sports clubs in order to forge alli- seeking ways of linking up with ances with overseas clubs so that Sicily and Tunisia for yachting these can use local facilities for routes. training. Malta should also try to forge alliances with renowned international sports centres. We Growth Markets should focus our effort to promote the use of existing sport facilities. The Ministry, throughA MT , will in- This will provide us with a higher crease other arrivals and expenditure of return on investment and better tourists visiting Malta for other reasons utilisation of existing resources. such as: • Major sports events – Major Cruising – The Investment in the sports events such as the P1 com- new cruise passenger terminal shows petition, Middle Sea Race, Malta government’s commitment towards the Open Bowling Competition, sector. Government will also continue Malta Marathon and Malta Open its efforts at promoting Malta as a ‘cruise Snooker Competition are estab- and fly’ destination. Cruise passenger lished annual events which give visitors are potential tourists. Best serv- Malta coverage. The Ministry will ice must be given to these visitors. We continue supporting these and will engage on the garden city project other international events. (co-funded through EU structural funds) • Other Sports disciplines – The in order to improve the aesthetics of Ministry supports sport activities Floriana and Valletta. This will also pro- and will work in order to increase vide cruise passengers with the possibil-

63 ity to experience local art in the arts vil- help us position Malta and market this lage which will be situated in Floriana niche as an added value to short breaks. and will give cruise visitors more spend- Medical holidays – MTA will keep ing opportunities. We will keep striving supporting private institutions who are in order to make Malta a homeport for interested in developing this niche. Pri- a number of cruise liners. The MTA is vate hospitals have invested in the prod- already working to include Malta in the uct and are working with international brochures distributed by cruise special- organizations in order to obtain permits ists. Gozo will be promoted with op- to affect operations on their behalf. erators of clippers (small cruise ships The AMT will support such initiatives carrying less than 1000 visitors). These through marketing efforts. will visit Gozo and Malta. Travelling in New source markets – Malta has smaller numbers but providing a higher been experiencing saturation in its yield, these tourists are more attractive source markets such as the UK and Ger- for Gozo. Government will make the many. The introduction of low cost air- necessary investments in order to have lines will increase the attractiveness of offshore berthing facilities. Malta in these countries. We must tap Strengthen short breaks – The Min- new markets such as Spain, Portugal and istry will maintain and promote a national Eastern Europe. The MTA must devise calendar of events. The newly launched a marketing strategy for these markets scheme aiming at attracting low cost air- and allocate a budget accordingly. lines is one of government’s policies with Wedding holidays – MTA will keep the objective of increasing the number of marketing Malta as a wedding destina- short holidays in Malta. The Ministry will tion. We will develop the related product continue working to increase seat capac- and service in order to offer a true experi- ity. We will continue supporting events ence befitting the situation. / activities that are an added plus for any It is our policy to ensure that mar- Malta stay. Events / activities organised by keting, product development, human government and private sector alike must resource development and regulatory be marketed well in order to attract the initiatives are well co-ordinated and in- right mix of tourists. The Ministry will be tegrated to ensure that the identified seg- working in order to strengthen the links ments continue to develop and result in between the different parties with the aim a positive economic and social contribu- of having a calendar of events well in ad- tion to Malta and Gozo. Synergies amid vance which can be promoted overseas. these segments must be created for the Ministry entities will also seek private benefit of all. partnerships in order to work on activity clusters (e.g. rock festivals, arts events) that will serve as an attractive proposition Issue 10: Maximising EU for potential tourists. opportunities Relaxation – In the last couple of years some hotels have invested in health Policy: and spa facilities in order to market Mal- We will continue to maximise the ben- ta for this emerging market. Malta can efits that result from ourEU membership increase the number of tourists who visit and actively participate in the decision- for relaxation. holidays 6 A revision of making process and discussions held at the standards of wellness facilities will an European Union level.

6 relaxation rather than wellness holidays are being promoted. The reason is that Malta can never compete with destinations such as Hungary who specialise in these kind of holidays because of the natural springs they have. Apart from that a revision of the standards of these wellness facilities is needed.

64 Tourism Policy for the Maltese Islands The Ministry together with the Malta tantly of increasing the economic return Tourism Authority will ensure that the and value of tourism in Malta. We will introduction of the euro will enhance monitor this progress through tourism Malta’s overall competitiveness and not satellite accounts which will provide us lead to increased tourism prices. with a measure of tourism’s value added. Malta will during the period 2007 to We will also seek to increase value 2013 be benefiting from EU Structural added through utilisation and presenta- Funds which total €850 million com- tion of our visitor attractions. We will plemented by the national co-funding. seek to increase repeat business through These structural funds include the encouraging customer relationship man- European Regional Development Fund agement by the private sector. (ERDF) which aims to address the infrastructural needs of the country, and the European Social Fund (ESF) which Issue 12: Reduce seasonality focuses on the development of human resources and employment. Both funds Policy: It is our objective to reduce sea- foresee direct support to the private sec- sonality, though we acknowledge that tor and non-governmental organisations. tourism activity is by its own nature sea- The financial plans that are currently sonal. being discussed between Malta and the European Commission envisage that 13% of the ERDF will be allocated to direct Issue 13: Employment, education and tourism projects. Other projects, such lifelong learning as urban regeneration and upgrading of environment infrastructure, will also Employment be of benefit to tourism. It is envisaged that such projects will take up about Policy: 50% of the ERDF. About 10% of the ESF We will promote the right environment may be allocated to projects focusing on leading to the creation of more and bet- training and employment in the tour- ter jobs in the tourism sector. National ism and cultural sectors. These projects employment policies and initiatives, as may be implemented by the Ministry specified in the National Action Plan for for Tourism and Culture, the Malta Employment, will contribute to this and Tourism Authority, Heritage Malta, the tourism service providers will be en- Malta Council for Culture and the Arts, couraged to work within the set environ- St James Cavalier Centre for Creativity, ment. It is our policy to continue address- the private sector and non-governmental ing the issues that are forcing women out organisations. of the labour market. Retaining staff is The tourism sector will through these crucial and female staff, in particular, can projects benefits in terms of an improved only be retained if and when the neces- tourism product and service and in- sary support structures and work pat- creased employment opportunities. terns are available and accepted. We will encourage such improved work practices to be taken up by the private sector. Issue 11: Achieving growth and value Whilst some opportunities for em- added in a mature destination ployment do lie within the traditional tourism related service providers, more Policy: opportunities exist which to date remain It is our policy to seek ways of increas- relatively untapped in the non-tradition- ing tourist expenditure and more impor- al tourism related service providers such

65 as in the conservation and interpretation with the requirements of the tourism in- of sites, in the creative industries, in the dustry, in terms of availability of courses crafts industry, in tourism policy making (time when courses are held, duration of and planning. We want to encourage in- courses, and quality of course). The na- vestment in such tourism service provid- tional commission for higher education ers whilst providing the training required has been set up and is now operational. for young people and those wanting to This will review the operation of ITS and work in these industries, which comple- will work in order for ITS to have a legal ment tourism. basis. We want to facilitate access to training as we consider investment in to- Education and lifelong learning day’s and the future’s human resources as key to delivering a positive experi- Policy: ence to our visitors. In order to encour- We will continue to raise our popula- age lifelong learning, we will provide tion’s appreciation of our cultural and free or subsidised training opportuni- natural assets. We will focus on targeting ties in the fields which are considered people who work directly or indirectly essential for the tourism industry. This in the tourism sector ensuring that they must be based on the industry’s train- have proper training opportunities. This ing needs analysis. should lead to the delivery of a quality Training must be delivered by special- service and hence improved competitive- ized personnel capable of meeting the ness. needs of the industry. We will assess the Investing in our children’s education need for private training enterprises to at all levels is essential. We will work with have qualifications which enable them to educators to identify the best ways of in- deliver training related to the subject. stilling in our children the skills required, Lifelong learning opportunities will the right attitude towards work, and hos- be provided for those interested to start pitality. Hospitality has been identified or to continue working in the tourism as one of our core values for branding sector. MTA, through its Industry HR Malta and we must therefore ensure that Development section, will implement ini- the characteristics of our population are tiatives aimed at providing such opportu- maintained. nities. The European Social Fund (ESF), We will develop and carry out a tour- forming part of the EU’s Structural Funds, ism awareness campaign with primary together with national funds, will co-fund school children. The campaign must such initiatives. highlight the importance of tourism, related sectors and contribution that is expected from everyone. The creation of child Issue 14: Price competitiveness and friendly characters, media and material value for money will be undertaken accordingly through the co-operation of MEYE, MTAC and Policy: MTA. Price competitiveness is crucial for any Together with the relevant authorities destination. Malta must not only com- we want to ensure that training is available pete on price but also on providing for all those who want to work in the tour- value for money. It is our policy to con- ism sector. tinuously monitor Malta’s overall price The training structures must continu- competitiveness, particularly in terms of ously improve the training provided. They the destination’s relative price with our must ensure that such training is in line source markets and with our direct com-

66 Tourism Policy for the Maltese Islands petitors, in terms of tour operator pack- tiveness and reduced expenditure by ages and in terms of the prices of items tourists during their stay in Malta. It can normally purchased by tourists. It is our also lead to negative recommendations policy to curb practices of overcharg- to family and friends by visitors. ing through increased enforcement and Providing value for money requires consumer protection measures by in- the right balance between the price be- creased co-ordination between MTA’s ing charged and paid and the service Regulatory Directorate and MCMP’s or product being offered. This policy is Consumer and Competition Division. very closely linked to that relating to our Over pricing and exaggerated profit product offer, destination management margins will lead to reduced competi- and service provision.

67 68 Tourism Policy for the Maltese Islands Section 5 Monitoring the implementation of the policy A monitoring mechanism will be set The Director EU Affairs and Policy up within the Ministry for Tourism and Development will also use the Policy Culture and will have the objective of Directors forum, led by the OPM’s monitoring the implementation of the Permanent Secretary responsible for tourism policy and the national tourism Policy, in order to ensure that the tour- plan. Following inputs from those who ism policy is in line with other policies are responsible for implementing the drafted by different ministries, and par- policy, quarterly reports on the progress ticularly to discuss policy issues that need of implementation will be drawn up, the support of other ministries. highlighting the areas where progress has Co-ordination among ministries and not been made and difficulties are being government entities is crucial for the faced. The reports will be distributed to implementation of this policy. All exist- the Minister for Tourism and Culture, In- ing structures within government are re- ter-Ministerial Committee for Tourism, sponsible for ensuring the implementa- and the Permanent Secretary MTAC. An tion of this policy. assessment of why milestones may not This policy will be reviewed peri- be reached and suggestions for improve- odically and changes may be made in ment will be passed on to the MTAC EU response to international trends and na- Affairs and Policy Development Direc- tional developments. torate and MTAC Permanent Secretary. If required, we will also report to the These will then decide on the best way Strategic Environmental Assessment forward in order to try and reach the de- (SEA) Audit Committee in order to ensure sired objectives. that we comply with the SEA directive.

69 70 Tourism Policy for the Maltese Islands Section 6 The tourism plan

The aim of the tourism plan is to present and service providers through a in one coherent document that which all specific study on this. tourism stakeholders will be doing to con- 4 Identify the investment areas that tribute to the further development of tour- have the potential to create more ism in Malta and Gozo. The tourism plan and better jobs. necessitates commitment from all stakeholders particularly in its implementation The final national tourism plan will pres- phase. Furthermore, to be in a position to ent in an integrated manner: formulate this plan, the Ministry for Tour- 1 a product management plan ism and Culture must have the support of which will include: all its stakeholders and particularly of the • The tourism zone management private sector which is to provide data and plans information as requested. Without proper • The areas of investment required data and information, the plan will not in these zones have a good basis. 2 an integrated marketing plan The basis of the tourism plan is the 3 a human resource development national tourism policy. plan 4 a regulatory plan The plan will be further developed to: 1 establish the current distribution For these plans to be implemented, of income on the basis of current the plan will identify: tourist expenditure patterns and 1 MTA’s contribution to tourism as employment levels, outlining its outlined in MTA’s strategic plan. flow into the tourism value chain. 2 other ministries and public enti- 2 Identify what structural reforms ties contribution to tourism. are required on the basis of stud- 3 The private sector’s role and con- ies on underperforming sectors. tribution to tourism and particu- 3 Identify the optimum mix of the larly to each of the market seg- different distribution channels ments and to service delivery.

Tourism Policy for the Maltese Islands

The final National Tourism Plan will be National Tourism Plan an integration of the following 4 plans

Product Plan HR Plan Regulatory Plan Marketing Plan for the Maltese for the Maltese for the Maltese for the Maltese Islands Islands Islands Islands

71 72 Tourism Policy for the Maltese Islands Section 7 Conclusion

Tourism remains a key sector for Malta’s happening in Malta is sustainable and economic and social development. based on that which is authentic, increas- Government is committed to do its ut- es value added and builds on the diversity most to ensure that the tourism activity that these islands can offer our guests.

73 74 Tourism Policy for the Maltese Islands Appendix 1 International Forecasts, European and Malta’s Performance UN World Tourism average annual growth rate both between Organisation Forecasts 2000-2010 and between 2010-2020. If the The UN World Tourism Organisation UNWTO’s forecasts for Malta are to be (UNWTO), particularly through the actualised, then this will translate to an Tourism 2020 Vision7 study forecasts average annual growth rate of 2.8% from that the number of international arriv- 2006 onwards. Growth rates which are als worldwide will increase to almost higher than this may be unrealistic and 1.6 billion in 2020. This translates into a unachievable. forecast growth rate averaging 4% a year. The UNWTO’s forecast for Malta is The scale and shape of world tourism in lower than that expected for the 21 coun- the future will be influenced by economic tries bordering the Mediterranean and factors, technology, travel being facilitat- which is expected to be 3%. The new and ed, safety, demography, globalisation, lo- emerging Mediterranean destinations are calisation, social-environmental aware- expected to achieve the higher growth ness, living and working environments, rates, whilst the mature destinations “experience” economy and marketing. such as Spain, Cyprus, France, Greece, Europe is expected to continue to be Italy and Malta will register growth rates the most visited tourist destination in the which are lower than the Mediterranean world with a projected 527 million tour- average. This will result in lower market ists for the year 2010 and a projected total shares for these countries. of 717 million tourists for the year 2020. The anticipated growth rate of 3.1% European Tourism Performance per year is one point below the world in 2005-2006 average, resulting in a decline in market Despite the continued threat of terror- share of 54% in 2004 to 52% by 2010 to ism, natural disasters, the impact and 46% by 2020. Within Europe, arrivals in threat of avian flu, and political uncer- the Central/Eastern subregion and in the tainties, world tourism grew by 5.5 per East Mediterranean subregion are ex- cent in 2005 reaching an all time-record pected to grow the fastest, with Southern of 808 million arrivals. Europe, in 2005, Europe, which includes Malta, being fore- recorded 18 million additional arrivals or casted to register the lowest growth rates. a relatively modest growth of 4%, which The forecast average annual growth rate is still one percentage point above the (1995-2020) for Southern Europe is 2.6%. long-term trend of the region. The in- Within the Southern region, the upcom- crease in tourist arrivals experienced in ing destinations of Croatia and Slovenia 2005 is a consolidation of the good results are expected to register the highest aver- achieved in 2004 when a +10% growth age annual growth rate, that of 8.4% and was experienced. The top performers in 6.0% respectively. Malta’s other direct terms of percentage growth rates during competitors, such as Turkey and Cyprus 2005 were the following: within the East Mediterranean region are expected to experience a 5.5% and a 2.5% Latvia + 21.0% average annual growth rate. Malta, on Turkey + 20.6% the other hand, is forecast to have a 2% Monaco + 15.0%

7 unWTO is considering updating the mentioned study to take into account further developments that have taken place in the international scenario after the study was carried out.

75 Lithuania + 14.8% ternational tourist arrivals worldwide, Greece + 11.0% reaching a total of 236 million inter- Finland + 10.6% national tourist arrivals worldwide. Switzerland + 9.9% Arrivals in European destinations are Slovakia + 8.1% estimated to have grown with the mod- UK + 8.0% erate rate of 2.5% in the period January Croatia + 7.0% to April 2006. The Mediterranean experienced a 5 % increase in interna- Growth was strongest in the tional tourist arrivals during the same Northern Europe region (+7%) boosted period, with Croatia, Israel, Serbia- by the UK. Southern and Mediterranean Montenegro and Spain registering Europe registered an increase of 6% the highest growth rates. Turkey and with Turkey having the highest in- Cyprus are estimating a decline of 7% crease of 20%. Spain, Croatia, Israel and and 4% respectively. Malta registered Serbia-Montenegro recorded growth a 1.1% increase during the first four rates of 6%, 7%, 26% (Jan-Oct) and 27% months of 2006 but an overall decrease (Jan-Oct) respectively. The growth in between January and August. The European tourism was also due to in- UNWTO Panel of Tourism Experts creases achieved by Central and Eastern were confident that prospects for the European destinations such as the Baltic May to August 2006 period would be States, Latvia (+21%), Lithuania (+15%) positive. However this positive trend and Estonia (+7% Jan-Nov). These des- may be affected by terrorism, higher tinations are generally emerging desti- oil prices (especially for aviation fuel), nations which are attractive to travelers the threat of an avian flu outbreak, and wanting to explore new destinations. stricter security measures. Among the main drivers of tourism growth for Europe in 2005, two should be singled out - accelerating demand for Malta’s Tourism Performance low cost, no frills air travel and the in- 2005-2006 creased prominence of Central/Eastern Europe, not just as a tourism destination Volumes but also as a source market. As a result of In 2005, tourist departures totalled these trends, which led to shorter, more 1,170,610, contributing to an average an- frequent trips, and despite the recov- nual increase of 1.1% over the last three ery of certain longer-staying, long haul years, and a 1.3% increase over 2004. The markets, preliminary estimates point to main reason for visiting Malta remains slightly lower growth for international leisure. Business travel accounts for about tourism receipts, or tourism spending, 8% of volume, 5% being for conferences than for international arrivals in Europe and incentives. During 2005 total tour- during 2005. International tourism re- ist departures by air totalled 1,150,769 ceipts, as reported by the UNWTO, for an increase of 2.1% over 2004. In 2005, Europe increased by 2.3% in constant tourist departures by sea decreased by prices in 2005 over 2004. The growth in 8780 from the 28,621 tourists who vis- international tourism receipts generated ited in 2004. 2006 was another up-hill by Southern/Mediterranean European struggle for the Maltese tourism indus- destinations was lower, at 1.5% increase try which was still reacting to the 2004 in constant prices. and 2005 changes which took place in the Preliminary results show that in tourism industry particularly in the Mal- the first four months of this year (2006) ta Tourism Authority. Between January there was an increase of 10 million in- and June 2006, total tourists departures

76 Tourism Policy for the Maltese Islands reached 471,728, a decrease of 2.4% over ing Malta by air generated a total of 10.93 the corresponding period a year ago. million guest nights. These nights were distributed as follows: Length of Stay Almost 70% of nights are registered in The average length of stay for 2005 was hotel type accommodation, whilst the re- 9.5 nights. The 1.15 million tourists visit- maining 30% are registered in self-cater-

Table 6: Number of nights registered in accommodation establishments:

Jan-Dec 2004 Jan-Dec 2005 % change 5 star hotels 1,087,021 1,156,750 +6.4% 4 star hotels 3,821,771 3,757,287 -1.7% 3 star hotels 2,096,652 2,087,910 -0.4% 2 star hotels 139,808 98,568 -29.5% Unclassified 8,132 13,083 +60.9% Own private residence 365,127 485,315 +32.9% Aparthotel 571,427 489,000 -14.4% Furnished premises 804,709 808,009 +0.4% Other 2,078,749 2,037,247 -2.0% Total 10,973,396 10,933,169 -0.4%

Tourists by air 1,127,407 1,150,769 +2.1% Average length of stay 9.7 9.5

Source: National Statistics Office ing, own accommodation or with friends In the first six months of 2006, guest and family. In 2005, the increases in guest- nights in five star hotels continued to in- nights were registered in five star hotels crease, registering a 4.3% growth. On the and in non-serviced accommodation. other hand, the three star hotels regis-

Table 7: Number of nights registered in accommodation establishments, January to June

Nights Jan-June Jan-June Jan-June % change 2004 2005 2006 5 star hotels 443,202 496,003 517,137 +4.3% 4 star hotels 1,634,038 1,611,811 1,607,913 -0.2% 3 star hotels 879,400 885,259 762,037 -13.9% 2 star hotels 49,338 40,335 62,854 +55.8% Unclassified 6,374 2,031 - Own private residence 137,369 190,794 160,754 -15.7% Aparthotel 264,596 175,761 157,362 -10.5% Furnished premises 303,856 250,435 316,109 +26.2% Other 774,977 790,393 699,848 -11.5% Total 4,493,150 4,442,822 4,284,014 -3.6%

Tourists by air 471,407 478,751 467,487 -2.4% Average length of stay 9.5 9.3 9.2

Source: National Statistics Office

77 tered a decline of 13.9%. Increases were fic and independent travellers. Air Malta also registered in furnished premises. accounts for almost 57% of passengers This could be the first indication that carried, whilst the other major traditional the share of independent travellers is in- airlines carry a further 16% of passengers. creasing. The existing low cost operators account for almost 4% of passengers. Tour op- Tourism Earnings erator carriers account for the remaining Total average expenditure per capita in 23% of passengers. Tour operators how- 2005 was Lm365. This expenditure in- ever also charter aircraft and book seats cludes a tourist’s expenditure on the on traditional air carriers. flight, accommodation and during the whole stay in Malta. Total tourist ex- Employment penditure in 2005 amounted to Lm427.6 The labour force survey presented by the million , of which Lm 203.7 million was NSO provides employment statistics re- expenditure on the package, Lm 32.3 mil- lating to employment in hotels and res- lion and Lm 50.1 million was recorded as taurants In 2005, over 13,000 people were expenditure on non-package accommo- employed in hotels and restaurants, 61% dation and airfares respectively, whilst being males and 39% being females. This other expenditure amounted to Lm 141.4 gender mix slightly changed from that million. of 2004, when 63% were males and 36% In the same period expenditure on were females. The average gross salary package travel reached Lm79.5 million, a of those employed in hotels and restau- decrease of LM1.0 million or 1.2%. Non- rants is reported as being Lm 4252.25 in package expenditure (airfares and accom- 2005, which increased from Lm 4,213.95 modation) also decreased by LM1.6 million recorded in 2004. It is worth noting that or 4.9%. Other expenditure from both pack- the pool of available personnel that could age and non-package tourists increased by be recruited into the sector will be main- LM0.5million reaching Lm55.5 million. ly female, according to the Labour Force Overall in the period between January and Survey. June 2006 total tourist expenditure de- It is estimated that about 20,000 full- creased by LM2.1 million or 1.2 %. time equivalent jobs are directly em- MTA tourism expenditure surveys in- ployed in tourism, (i.e. in accommoda- dicate that tourists visiting Malta spend tion and catering establishments, travel 40% of their expenditure on accommo- agencies, car hire firms, Air Malta and dation, 11% on food and drink, 13% on other direct tourism service providers), transport, 14% on recreation activities, accounting for about 12% of employ- 20% on shopping and 2% on other expen- ment in Malta. A further 20,000 people diture. Tourists interviewed highlight are dependent on tourism earnings that the lack of expenditure possibilities espe- circulate in the Maltese economy, also cially on authentic and local products. as a result of the multiplier effect. It is our intention to sustain existing jobs Accessibility and increase new employment in tour- 98% of Malta’s tourists arrive in Malta via ism. This has to be done by ensuring our air links. More than 50 airlines oper- that tourism earnings which remain in ate to and from the Malta International our tourism are maintained and prefer- Airport, carrying both tour operator traf- ably increased.

78 Tourism Policy for the Maltese Islands 79 80 Tourism Policy for the Maltese Islands Appendix 2 The Private Sector

The Private Sector Points of entry and exit Malta has two points of entry and exit, The private sector in Malta is composed namely the Malta International Airport of a number of airlines, accommoda- and the Sea Passenger Terminal. The tion establishments, catering establish- Malta International Airport, in 2005, ments, travel agencies and destination registered over 50 airlines operating to management companies, dive operators, and from Malta. Air Malta, British Air- language schools, car hire firms, guides, ways, Lufthansa, Alitalia, British Jet are visitor attractions and transport service the top five air carriers operating to and providers. The data below provides an from Malta. Other scheduled flights overview of the number of operators in are operated by airlines such as Emir- the sector. ates and Austrian Airlines. Britannia Airways, First Choice Airways, Thomas Cook Airlines, My Travel and other air-

Table 3: Bedstock in the past 5 years

Bedstock 2002 2003 2004 2005 2006 as at 1st January Units Beds Units Beds Units Beds Units Beds Units Beds Hotels 5 star 11 3750 11 3738 13 5040 13 5040 13 5688 4 star 44 15045 45 15341 47 15928 44 15315 44 15148 3 star 47 11016 51 11548 51 11074 45 10272 49 10788 2 star 19 1261 19 1258 18 1174 16 1059 15 916 Total 121 31072 126 31885 129 33216 118 31686 121 32540

Bedstock 2002 2003 2004 2005 2006 as at 1st January Units Beds Units Beds Units Beds Units Beds Units Beds

Villages & Aparthotels 4 star 8 1924 8 1924 8 1920 8 1860 7 1292 3 star 12 2488 13 2802 12 2642 10 2350 11 2634 2 star 13 2143 13 2143 15 2407 15 2407 12 1551 Total 33 6555 34 6869 35 6969 33 6617 30 5477

Guesthouses Comfort 12 295 12 295 12 295 12 295 10 243 Standard 23 613 22 575 31 649 26 684 26 683 Total 35 908 34 870 43 944 38 979 36 926

Hostels Standard 2 166 2 166 3 236 5 488 5 488

TOTAL 191 38701 196 39790 210 41365 194 39770 192 39431 81 lines also operate to Malta generally car- on the market in Malta. 5 star bedstock rying tour operator traffic. In the past few increased to account for 17% of hotel ac- years, the MIA has also attracted a few commodation in 2006 from a 12% share low cost operators such as Meridiana and in 2002. On the other hand, bedstock in it is envisaged that major low cost opera- the other categories of hotel accommo- tors will commence operations to and dation was slightly reduced. Overall this from Malta in the coming months. results in a total hotel bedstock of 32540 Major investment is underway in the beds registered as at 1st January 2006. Sea Passenger Terminal and particularly With the exception of hostels, the other in the Cruise Passenger Terminal operat- types of serviced accommodation either ed by Viset plc. This investment, comple- remained constant or registered slight mented by marketing efforts and co-or- declines in bedstock. dinated approaches of the Malta Cruise This mix of bedstock is further com- Network, has led to increased cruise plemented by over 1250 host families liners berthing at the Valletta Grand which provide accommodation for stu- Harbour. Sea links between Malta and dents visiting Malta to learn English. Sicily have also increased through private 925 of these families are licensed to investment. host 4 students, whilst 329 families are licensed to accommodate 2 students. A Accommodation establishments further 987 licensed holiday premises, Over the past five years, there has been including farmhouses and villas, owned a slight shift in the type of beds placed by individuals or companies and offer-

Table 4: Catering establishments in the last 4 years

As at 2003 2004 2005 2006 1st January no Covers no Covers no Covers no Covers

Restaurants I 16 1185 16 1185 17 1239 15 1048 II 160 9753 171 10563 187 10601 190 10520 III 251 11509 258 11703 241 10917 315 13703 IV 87 3133 88 3179 82 3031 Total 514 25580 533 26630 527 25788 520 25271

Speciality restaurants I 20 1286 21 1286 29 1719 30 1914 II 41 2388 43 2558 43 2659 42 2539 III 25 1036 26 1065 25 1012 24 1029 Total 86 4710 90 4909 97 5390 96 5482

Snack Bars I 9 604 10 744 9 654 15 788 II 43 2807 58 3374 78 3810 349 10453 III 107 3369 109 3389 111 3355 IV 131 2813 132 2847 138 2939 Snack bars (Take away) 54 - 64 - 68 - 67 - Total 344 9593 373 10354 404 10758 431 11241

Totals 944 39883 996 41893 1028 41936 1047 41994

82 Tourism Policy for the Maltese Islands ing over 4,500 beds are also available on egory restaurants and in first class spe- the market. ciality restaurants.

Catering establishments Travel agents Over the past four years, there has been Travel agents in Malta vary from those an increase of 100 catering establish- offering incoming and outgoing travel ments (11% increase) which are offer- services, to destination management ing 5% more covers than were available companies and excursion operators. A in 2003. The additional investment was number of the licensed 237 travel agents made in the second and third class cat- provide more than one type of service.

Table 5: Number of travel agents in 2006

Incoming Tourism Agents 88 Outgoing Travel Agents 103 Destination Management Companies 20 Organised excursion operators 26 Total 237

The table below provides the number of tor in visitor attractions is mainly in en- travel operators by main activities as at tertainment. In recent years, there has 1st January 2006. been private sector investment in heritage as well with innovative cultural visi- Other tourism service providers tor attractions being opened and being Malta has 46 dive operators, 34 being successful. Investment in visitor attrac- established in Malta and 12 in Gozo. 45 tions is made both by the private sector language schools operate in Malta, three and by the public sector. of which are in Gozo. Major car hire com- Malta’s visitor attractions and recre- panies are also present in Malta, whilst ational activities range from museums coach companies and taxis also provide and historical sites including World transport services. Heritage Sites8, to buildings of architec- 500 persons have followed the tural value, to natural habitats, to diving Continuous Professional Development and other sports facilities, to a number of programme during 2006 and will have theatres, casinos, cinemas and other en- their licenses renewed as tourist guides. tertainment spots. 275 guides operate on a freelance basis. According to the National Statistical Guiding in Malta can be provided in 25 lan- Office, Malta has 56 museums and his- guages including Maltese, English, German, torical sites which are open to the public. French, Italian, Japanese, Russian. Half of these are State-owned, the rest are equally divided between those owned by Visitor attractions and the church and by other private entities. recreational activities 16 of these museums and sites are spe- The investment made by the private sec- cialised in nature, 7 are monuments and

8 heritage Malta is the national agency of Government entrusted with the management of national museums and heritage sites and their collections including seven UNESCO world heritage sites. Heritage Malta is aware that heritage can act as a catalyst for Malta’s tourism potential and consequently contribute significantly to the economy. It therefore seeks to improve the service and experience to all visitors in order to foster a more favourable image on a national as well as on an international level (www.heritage- malta.org).

83 sites, 11 relate to archaeology and histo- Malta is also rich in biodiversity, es- ry, another 11 to art, whilst the remaining pecially when one considers the small cover natural history and natural science, size of the islands, together with the ethnography and anthropology, military limited range of habitats and the pres- and maritime. The National Statistics sure on the natural environment from a Office reports that almost two million relatively large human population in such admissions were registered by these mu- a small land mass. Over 4500 species of seums. One fifth of these admissions was plants and animals have been recorded, in museums and historical sites in Gozo, not taking marine organisms into ac- with Ggantija Temples accounting for the count. About 85 of these species are en- highest amount of visitors. The reported demic. The habitats where these species income generated by the museums and of plants and animals are found include historical sites amounted to over Lm 3.25 garigue, maquis, woodland, steppe, cliffs million in 2005, a 33.5% increase over and boulder shore, freshwater pools and the 2004 income. It is interesting to note springs, saline marshlands, sand dunes, that the income from admission fees in- rocky shore and seagrass meadows found creased by 19% though the number of offshore. visitors to these museums and historical Malta’s offshore environment is an- sites declined by 4.2% over the previous other attraction for tourists, particularly year. The importance of culture can be those interested in diving. The number seen not just from these figures but also of wrecks and further scuttling of boats from the role culture plays in the devel- further contribute to the islands’ diving opment of a community. product.

84 Tourism Policy for the Maltese Islands Acronyms

ADT awtorita dwar it-Trasport CEO Chief Executive Officer DTCs director Tourism and Corporate Services efl english as a Foreign Language ETC employment and Training Corporation eu european Union HM heritage Malta IMC for Tourism Inter-Ministerial Committee for Tourism IMU Information Management Unit ITS Institute for Tourism Studies MCC Mediterranean Conference Centre MCCA Malta Council for Culture and the Arts MCMP Ministry for Competitiveness and Communications MEYE Ministry for Education, Youth and Employment MFA Ministry of Foreign Affairs MFIN Ministry of Finance MFSS Ministry for the Family and Social Solidarity MGOZ Ministry for Gozo MHEC Ministry of Health, the Elderly and Community Care MIA Malta International Airport MIIIT Ministry for Investment, Industry and Information Technology MJHA Ministry of Justice and Home Affairs MRAE Ministry for Rural Affairs and the Environment MRES Ministry for Resources and Infrastructure MSA Malta Standards Authority MT Manoel Theatre MTA Malta Tourism Authority MTAC Ministry for Tourism and Culture MUDR Ministry for Urban Development and Roads nso national Statistics Office Perm Sec Permanent Secretary PPCD Planning and Priorities Co-ordination Directorate within OPM PSCG Private Sector Consultative Group SCh superintendence for Cultural Heritage SJC st James Cavalier Centre for Creativity UNWTo united Nations World Tourism Organisation Ministry for Tourism and Culture EU Affairs and Policy Development Directorate ‘Auberge d’Italie’ Merchants Street Valletta

Tel: 22915058

86 Tourism Policy for the Maltese Islands