Editorial

The news coming from the tourism sector in the last few weeks indicate that more attention needs to be focused on supporting this important industry. Tourist numbers in the last three months have shown significant declines and occupancy levels this winter seem to have reached the lowest levels for some years.

Every operator in this sector seems to have a strong view on what needs to be done to instil some life in this flagging sector. Restaurant operators, for instance, may want to urge the government to implement the recent concession being considered by EU, following a report by the Dutch MEP Leke van den Burg, to charge a lower VAT rate on labour-intensive or locally-supplied services such as those offered by restaurants.

Hotel owners would prefer to see more capacity being added by airlines servicing the Malta route together with more money spent by the Malta Tourism Authority on advertising and marketing. Lip service is often paid to the improvement of the tourist product as most operators seem to think that this is someone else's responsibility, often implying that this "someone else" is the government.

There are many, however, who believe that the Maltese tourism product has become rather tired and uncompetitive. The market for European tourists has become very crowded with far more destinations competing for the same number of holiday makers who are becoming increasingly cost conscious. Yet, Malta has so much to offer to foreign visitors.

There is no doubt that short-term tactics are needed to cushion the worst effects of the difficult economic climate that is affecting the countries from where our tourists come. A lower VAT rate on restaurants, now that this is allowed by the EU, could be just one measure that may need to be adopted.

A marketing blitz aimed at those targeted population sectors that are less likely to be affected by the economic downturn in Europe could be another method.

The long-term viability of the tourism industry in Malta is a much more daunting challenge. We need to move from the adoption of tactics that address the needs of particular sectors to the formulation and implementation of a strategy that first identifies the weaknesses in the product and then defines an action plan to address these weaknesses.

We need to move from platitudes to honest admissions of mistaken policies adopted in the past so that we can make a fresh start, knowing that this time round we have the onerous responsibility of ensuring the survival of this important economic activity.

Things will only change for the better and the Maltese product will only become a winner in the market if all stakeholders accept that they all have obligations that in the past they may not have considered to be theirs. Crucial factors that have been given little or no importance in the past need to be built in our strategy for success.

Critical success factors could include a solid commitment to improving the natural environment in order to make the island more attractive in the eyes of those that visit us. We also need to ensure that quality standards in establishments that provide tourist-related services are indeed enforced.

A lifeboat operation may bring some comfort for those suffering the worst effects of the downturn in tourism. But the time may also have come for a major refit of the flagship of our economy because we still depend on it to prosper.