Consultants map way ahead for fair corporation

The Trade Fair Corporation was planning to buy the trade fair grounds in Naxxar by the end of this year, the fair's corporation's president Ian Mizzi said.

"If the corporation manages to conclude the deal, it would be a credit to all those involved in the process and to past corporation presidents," he said.

This year's Malta International Trade Fair was inaugurated yesterday.

The trade fair corporation is made up of representatives of the Federation of Industry, the Chamber of Commerce, the Association of General Retailers and Traders, the Malta Society of Arts, Manufactures and Commerce, the Trade Fair Exhibitors' Association and the government.

Mr Mizzi was appointed corporation president by the Federation of Industry. The president holds the post for one year with a maximum term of two years.

The lease of the land at Naxxar matures in six years' time. The footprint consists of about 70 tumoli, 50 tumoli of which belong to Scicluna estates and the rest to the government and the corporation.

"Currently, the corporation and the sellers have agreed on a sale price. A former Nationalist administration had agreed to grant the corporation a 10-year tax holiday on profits and relief from stamp duty on the contract on the sale of the land. Similar conditions are expected to be granted to the corporation under the new aid to industries legislation. Moreover, part of the land owned by the government would be passed on to the corporation.

"The government considers the fair as having national importance: it stimulates commerce and keeps the economic motor going. Every year more than half of the country's population visit the fair," Mr Mizzi said in an interview.

The trade fair started in the early 1950s as a consumer fair and used to be held first at San Anton Gardens.

Although the channels of distribution of goods have become more sophisticated and widespread, there is evidently still scope for the annual trade fair, especially when one sees that the number of exhibitors and the number of people attending the fair continues to rise from year to year.

Most of the fairs organised during the rest of the year are business-to-consumer. There are few - if any - business-to-business fairs. The main problem is one of space because the trade fair grounds were not designed to house such commercial activity.

The corporation could attract specialists in all sorts of spheres to Malta for seminars and congresses and in turn try to attract the companies that supply these specialists, he said.

Each congress would bring with it a specialised fair. Exhibitors would be attracted to display their wares and services in Malta because they would know their clients would be here.

Last year, the corporation commissioned Ronald Berger, an American firm of consultants, to draw up a report on mapping the way ahead for the corporation.

Their brief was to spell out what role the corporation would follow once Malta joined the EU.

Once Malta joins the EU, the corporation would have to make fundamental changes on the way it functions and which markets to go for.

Mr Mizzi said that in order to survive, the corporation had to streamline those activities that were not profitable.

"One of the points raised by the consultants was that the corporation should tackle business-to-business fairs and the property we buy should be developed into an exhibition centre with a multi-purpose hall.

"In this way, we would be able to finance the land, because if the corporation buys the land and does not develop it, the land would lie fallow for most of the year".

The corporation would have to maximise the use of the land and get the optimum return from it.

"If, for example, the corporation were to organise a three-day congress, the delegates might extend their stay by a couple of days to take a short break but persons taking part in fairs cannot indulge in this kind of luxury because they have to stick to tight schedules.

"We cannot say that we will be able to attract such business just because the island is blessed with the sun and the sea. The competitive edge would have to be creativity and excellence in the way such fairs and congresses are organised.

"We have a considerable number of good hotels but one would not be able to schedule such congresses in summer because of the high occupancy levels."

One would also have to ensure that there are efficient connections by air from the point of departure of the delegates.

"This is one of the main problems Malta is facing. Even flying to Malta from Milan is a problem because there are only two direct flights a week to Malta.

"Flying from Milan to Malta means going first to Rome. Professionals cannot afford to spend so much time travelling.

"Even though Air Malta has a considerable number of flights, connections with other cities is a problem."

Any future plans required a lot of groundwork including negotiations with the government, with Air Malta and with foreign firms. One had to study how to overcome the problem of isolation and the fact that Malta was on the periphery of Europe.

Another aspect to be taken into consideration was that when Malta joins the EU, the corporation would have access to carry out business in EU member states just as other foreign firms would be able to do business in Malta.

This scenario looks attractive on paper but would it work out in practice?

"This depends very much on how the whole thing is designed. You have to know the market, you have to have a plan and know your competencies.

"We do not have experience in foreign markets but one can buy that kind of knowhow or one can form partnerships with other companies.

"It all depends on one's ability to find niche markets that have not been tapped.

"We are at the centre of the Mediterranean, and Tunisia, Algeria, Turkey, Israel and Egypt are developing at a fast rate.

"How can we take advantage of this situation? It may be that our position in Europe would help us become the stepping stone between these countries and Europe.

"But we have to find the right formula. Our best assets are our human resources. The Maltese are known to rise up to meet challenges and make a success of such opportunities," Mr Mizzi said.

The Trade Fair Corporation has 30 full-time employees but if it changed the concept of how it worked, the structure would have to change accordingly.