Is the future of tourism really in the stars?

Last week the Malta Hotels and Restaurants Association issued another report, that for the last quarter. It showed a definite need for investment if we want to be able to offer a better product and attract sustainable tourist business.

But there is something about this report that should make one stop and think again. What is it that has driven us into the rut we seem to have hewn out of a rather lucrative path to success in tourism?

Historically, Malta has always attracted both the intellectual traveller and the sun seeker from the rather grey and dull countries of Europe. The mistake of labelling Malta as just another Mediterranean island of sea and sun for the masses was made when some resourceful entrepreneurs discovered the tour operator and thought of the economics of mass tourism in the early 1970s.

The irony is that the idea of this mass market invading the island has, fortunately, never quite caught on, despite the rapid increase in bed supply and the mushrooming of new clusters of holiday apartments and seaside concessions.

We have hovered around the million mark in annual tourist arrivals over the past decade. Perhaps this could be the reason why ever since the days of Freddie Laker, Horizon and Edrichton, hoteliers have been fighting a battle among themselves for a greater share of the market.

Meanwhile, the five- and four-star hotels had to face rising costs. It seemed the only way out of this was to bite the bullet and search out the most popular market or simply "go for broke". The temptation seemed far too great for most and the result was a role reversal in the accommodation sector. We now have five- and four-star hotels offering "bargain" breaks at rates which should really suit the three- or even two-star categories.

The obvious result was that the customer opted for the prospect of having a luxury holiday at an economical price. Who really cared whether that holiday was in Malta, Cyprus, Spain or Turkey? It is paradise after the stress of city life and the pressures of today's living! Some entrepreneurs may even be forgiven for thinking that this easy market is the real answer to their perennial question as to how they are going to fill up and make some profit.

But this philosophy is now growing extinct. Customers have cottoned on to this way of thinking and, quite honestly, I must say this could be a godsend. That situation was never meant to last; it has always been a stop-gap strategy which depended on riding piggy back on the woes of other countries - a war in Bosnia, an earthquake in Turkey, terrorism in Spain or even strikes in Italy.

We need to make it our policy that Malta will not take second best or even third place in this choice. We have to work at the idea that tourists would look at these islands as offering more than a bargain basement selection of stereotyped holidays. We have such a lot to offer, so many opportunities that remain untapped.

Over the past 80 years, we have persisted in offering itineraries to the same places of interest when there are so many other sites which remain hidden down winding streets, forgotten alleys or behind old and rusty porticos in our towns and villages.

We pride ourselves on our entrepreneurial skills and our innovative ideas of business. We even talk of replicating the theme park concept here but we do not realise these islands offer a real theme park of living history in every town and village. From the old palazzi in Mdina to the simple girna in the fields, we can relive our past through a series of interesting scenarios but we have to remember this will never be successful if we do not appreciate this heritage ourselves.

The government and the Malta Tourism Authority are working hard to change this attitude but it will only be up to us to make things happen and work efficiently and effectively. The World Tourism Organisation predicts the doubling of tourism by the year 2020 but offers no explanation as to how the impact on global-local relationships is to be tackled.

The need for resolution is as much for the well-being of the tourism industry as it is for the welfare of the host communities who will bear the brunt of a possible rise in tourism arrivals.

We have to be ready for this challenge today and we must have a clear idea of what product we want to offer to which market so as to avoid the pitfalls of the past.

Our emphasis must be on establishing clear demarcations in our hotel classification. If, as entrepreneurs, we want to run a three-star hotel, then we have to operate as a good three-star hotel with the available services and quality acceptable of this class.

If, on the other hand, we prefer the four- or five-star category, then we have to be sure of our market and realise the sustainability of our decision. We stand to gain from membership of the European Union here as well because one area which is costly but vital to the successful implementation of our business plans concerns research and development and this is an area where the synergies of all 25 member states can surely chart the future of the industry.

With so many World Heritage sites and a walled city which is a microcosm of European heritage and architecture, we need to look at the alternatives to an island of sun, sea and sand. We need to consider the global aspects of our history.

Mr Zarb is founder-president, Malta Tourism Society.