It is a worrying reality that many enterprises only think about revamping their business model when they find themselves with their backs against the wall.
Extraneous and unforeseen events often serve as a wake-up call for business leaders to rethink their operations to remain relevant. The tourism industry is experiencing such a moment as the national energy crisis raises questions about the sustainability of the current industry model.
The Malta Hotels and Restaurants Association (MHRA) is the tourism industry lobby that regularly appeals to policymakers to apply tactics that could address specific concerns that operators face from time to time.
In its latest statement, the MHRA argued: “The ongoing power cuts, shabbiness across the country, congested roads and ongoing construction works are seriously impacting the future of tourism.”
This time, the MHRA limited itself to issues it feels must be addressed by the government and policymakers like the Malta Tourism Authority (MTA). Undoubtedly, the concerns of the tourism lobby are real and must be urgently addressed. But the industry’s future depends on more crucial structural changes that have been ignored for too long.
Tourism operators must not expect that their responsibility to keep the industry vibrant is limited to the management of their facilities, be they hotels, private beaches, restaurants or clubs. Many operators have exploited the authorities’ laissez-faire attitude to enforcement of sensible civic regulations by causing unnecessary hardships to local communities.
The late music playing in Valletta, the encroachment of pavements in tourist areas to accommodate restaurant seating and the promotion of activities by specific tourist venues that project an awful image of Malta as an attractive tourist destination are just some examples of operators behaving badly.
Unfortunately, the MTA seems more interested in marketing the islands with expensive promotional exercises than ensure operators adopt high-quality standards to meet visitors’ expectations.
It is time for tourism policymakers and operators to acknowledge the industry’s challenges and define an action plan to implement the necessary changes to revitalise the industry.
Malta, for instance, has yet to adjust to the effects of climate change. Unlike some tourist destinations like Barcelona and the Canary Islands, it seems that local policymakers and operators are still focused on promoting mass tourism despite their formal commitment to upgrade the quality of the visitors they aim to attract.
This year’s heatwave is unlikely to be a one-off event. According to industry experts, tourists may soon want to avoid heatwaves by exploring other regions. Rather than endure the sweltering temperatures of the Mediterranean coast, visitors are likely to opt for destinations such as the Atlantic coast or mountainous areas during the hot summer months.
The MHRA recommendations for short-term improvements are relevant. Still, it needs to engage in a soul-searching exercise to underpin the industry’s future with strategies that may be painful in the short term but likely to bring lasting benefits. Hopefully, policymakers will be catalysts to promote the rethinking of the industry’s business model.
The industry’s heavy reliance on low-cost foreign labour and low-added value is no longer acceptable. Focus on short-term profits, often achieved at the cost of great inconvenience to the local community and taxpayers’ financial support, is fallacious.
The industry must develop a model that respects the rights of all stakeholders, with as little burden on taxpayers as possible.