Last November, following a period of consultation with a wide array of stakeholders and members who are directly or indirectly involved in tourism, the Tourism Business Section of The Malta Chamber launched ‘Rediscover’, a renewed vision for the tourism industry in Malta, which proposes more than 125 recommendations.
At the heart of this vision lies sustainability in growth, enabled through three key pillars – improving the customer journey; encouraging authentic quality customer experiences; and building on our capabilities – which are critical to the sector’s transformation in a post-COVID reality and to improve Malta’s offering as a destination of choice in the face of stiff competition from countries in the region.
The underlying principles guiding this vision were adopted by The Malta Chamber’s electoral manifesto which called for the following political direction:
Redefining Malta’s tourism product – redesigning the tourism product, branding and communications with a greater emphasis on quality experiences and authenticity. The experience in Malta must be presented as one that is true to its own identity and avoids the pitfalls of over-tourism.
Improve and encourage tourism education – Maltese people are an integral part of Malta’s offering and the service to tourists needs to reflect this. It is imperative to instill a sense of pride in locals wishing to pursue a career in tourism.
Revisit the role of the Malta Tourism Authority as an enabler and reposition it as an active regulator – the time is ripe to restore the MTA to its core function, which has often been perceived as an active competitor with the private sector rather than as the intended industry regulator that enforces licensing standards and promotes best practices.
The MTA should focus much more on being an enabler and a specialised visibility and promotional agency that builds unique capacity in the digital marketing and branding of the country and its offering.
Excess capacity [in tourist bed stock] is putting pressure on operators to lower prices and reduce further profitability in times when costs are soaring- Alison Vassallo and Alan Arrigo
Temporary suspension on new tourist accommodation – the increase in tourist bed stock was already a growing concern in 2019, and the excess capacity is projected to increase substantially by 2030, putting pressure on operators to lower prices and reduce further profitability in times when costs are soaring.
Against this backdrop, The Malta Chamber reiterates its call for a more sustainable accommodation model, one that necessitates the temporary suspension of new tourist accommodation applications.
The yachting services business section has focused its efforts on the identification and acknowledgement of the yachting industry as a key luxury tourism segment. Despite the estimated €100 million that it generates for the local economy, excluding revenue from taxes and flag registration, it is yet to be recognised as an integral constituent of Malta’s tourism offering.
This sector is supported by its unparalleled maritime heritage and location together with in-depth technical, practical and legal knowledge that fuel its capacity to cater for high-end luxury tourism.
The significant inroads achieved by Malta over the past years through the combined efforts of the private and public sectors require to be further strengthened through improved infrastructure and investment in human resources at key government departments on which the industry so heavily relies in offering blue chip services to this most competitive of international sectors.
Efforts should be made to create stimulus and incentives to encourage the arrival of commercial and private yachts to Malta’s shores, whether as a launching pad for cruising around the Med or as a destination.
It is to be borne in mind that the arrival of yachts to Malta generates spill over economic activity in the industries relying directly or indirectly on the sector: provisioning companies, marinas, refit and repair facilities, ship chandlers, agents, fuel providers and subcontractors, service providers, restaurants, catering establishments and, in cases of owners and charter guests flying into Malta to board a yacht, hotels.
This vision was adopted in The Malta Chamber’s electoral manifesto primarily by identifying yachting as a niche tourism sector that requires to be incentivised. As one of the practical means in which this can be achieved The Malta Chamber is proposing to treat berthing and visiting yachts in Malta’s marinas in the same manner as tourism accommodation in so far as the seven per cent tourism VAT rate should apply also to berthing services, agency fees, and the provisioning and expenses relating to the preparation of yachts embarking on charters.
This is to be considered within the wider context of ensuring continued support to all the factors that has rendered Malta – with its strong legal system, stellar flag and strong array of logistical services – a force to be reckoned with in the yachting sector.
Dr Alison Vassallo is chairperson of the Yachting Services Business Section of The Malta Chamber. Alan Arrigo is chairperson of the Tourism Operators Business Section of The Malta Chamber.