The tourism industry is driven by multiple complex cogs and wheels that promote economic growth and social well-being when they move in sync. Small Mediterranean islands are updating their tourism strategies to deal with the challenges facing the industry after COVID and the new economic realities being experienced in Europe.
The wheels of Malta’s tourism also need oiling after two years of barely moving.
Practically all industry policymakers acknowledge that quality of service needs to be the bedrock of the renaissance of tourism. Still, critical observers note that the Holy Grail of the industry seems to be boosting visitor numbers to 2019 levels.
Whether stakeholders in the industry admit it or not, Malta attracts mainly the lower end of the tourist market. This sector is primarily attracted by low-cost airfares, frequent connectivity, relatively cheap accommodation, affordable food and beverages, and good weather.
Destinations that aim to attract better quality tourists, who are prepared to spend more in return for an exceptional holiday experience, are often advised by industry experts not to compete on price.
Malta’s tourism operators need to challenge the prevailing “back to business as usual” mindset of policymakers.
This strategy seems to be underpinned by a desire for a fast recovery of travel and tourism flows, tolerance of unrestricted tourist and business behaviours, and turning a blind eye to the increasing social and ecological impacts from the industry.
Mass tourism is price sensitive, and the higher costs of a holiday in Malta undermine its appeal to cost-conscious visitors. Yet, a desk research exercise conducted by Times of Malta shows that Malta is more expensive for visitors than competing destinations like Cyprus, Greece, Portugal and Spain.
In the short term, tactical issues like eliminating pandemic-linked travel restrictions and protocols, facilitating the recruitment of foreign workers, and targeted subsidies to mitigate the spiralling costs of energy and food can oil the cogs and wheels of the industry.
But the longer-term solution must surely be a plan for reengineering the sector to make it sustainable without constant taxpayers’ support.
The renaissance of tourism for small islands like Malta must have as its cornerstone a determined commitment to respect people and nature, invest in digital innovation, eliminate precarious working conditions for industry workers, and show sensitivity to the local community.
Only when these objectives are achieved can the industry claim that quality is indeed its driving force. Discerning visitors will only be prepared to pay a premium if the experience of visiting our islands is an enhanced one.
After more than two years of uncertainty, no one can be 100 per cent certain about what the future of travel will look like. Few have any doubt that consumer behaviour is changing.
Business and holiday travellers are giving more importance to health and safety measures, to environmental sustainability and cultural authenticity, besides the usual focus on the cost of travel and other services.
Malta will continue to face intense competition from old and new destination rivals in the Mediterranean. The local industry could compete by adopting the ‘survival of the fittest’ strategy. This approach would be characterised by fierce competition on price, expensive marketing initiatives and a focus on sheer visitor numbers.
And it would pay scant attention to the hidden socio-economic and environmental costs incurred by the community.
As we have stressed before, while it is necessary to oil the wheels of the industry to kickstart a quick revival – economic growth targets partly depend on it – the industry’s long-term future will mostly depend on its willingness to reinvent itself.