MONEY JUN/JUL 2014 ISSUE 25

TH

25 issue

EXCLUSIVE INTERVIEWS WITH

Money / Issue 25

1

WELCOME

CONTENTS

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n the run-up to summer and the peak tourism season, one item always gets the biggest column inches: Malta’s tourism strategy. This year, just before summer, the Malta Hotels and Restaurants Association called for a new longer-term holistic strategy plan for the industry, one which should signal a fundamental shift in how government would facilitate sustainable development and strategic growth.

And yet, while we continue discussing Malta’s need for a new tourism strategy, the industry itself keeps breaking records, both in terms of the number of arrivals as well as their financial contribution. Last year, for instance, tourist arrivals surpassed the 1.5 million mark, an almost 10 per cent increase over 2012. Bed nights were up to one million and tourists spent around nine per cent more in 2013 than they did in 2012.

Conundrum? Not really. Tourism, after all, isn’t a numbers game. While the increase in arrivals may be, in part, contributed to the instability in other competing destinations such as Egypt, Malta still has a limited capacity. And that means that at some point, the number of arrivals will level off. Also, an increase in arrivals isn’t necessarily a good thing: low-spending tourists still constitute an infrastructural and environmental cost.

On the other hand, fewer but higher quality tourists would generate a higher yield.

In terms of attractions, what brings tourists to Malta is the sun-sea-culture combination. However, there are also other niche markets, such as diving, medical, religious and conference tourism, which we should be exploring further.

Whatever tourism strategy we embark on, there is one thing we should keep in mind: the importance of consultation with all stakeholders.

In this issue of Money, that is exactly what we do. We interview Tourism Minister Edward Zammit Lewis and shadow minister Robert Arrigo.

George Larry Zammit discusses how to create a strategic difference by nurturing Malta’s emotional assets while Edwin Ward and Dr Nadia Theuma explain how they are developing tools for country brand managers to analyse and grow their brand assets.

In this issue of Money, we also interview Pasquale Natuzzi and Grey Goose creator Francois Thibault and travel to the best shopping destinations in the world.

8 // MORE THAN A NUMBERS GAME Although the tourism industry is thriving, we must not rest on our laurels, Tourism Minister Edward Zammit Lewis tells Veronica Stivala. The key lies in branching out into sports, religious and business tourism as well as focusing on our assets.

10 // A DIVERSIFIED INDUSTRY Shadow Tourism Minister Robert Arrigo's views on the tourism ministry.

13 // LESSONS TO BE LEARNT Malta needs to further explore education tourism, says Reuben Buttigieg.

18 // THE SPIRIT OF A MAN Making vodka in wine and cognac country doesn't sound like a good idea. But Francois Thibault persevered and created the recipe for Grey Goose vodka. Money drinks to his health.

20 // EMOTIONAL LUGGAGE We can create a strategic point of difference by nurturing Malta's emotional assets, says George Larry Zammit.

25 // DEVELOPING YOUR BRAND ASSETS Maltese researchers put Malta on the international brand map with new diagnostic tools.

alternative already practiced in Paris, Moscow, and New York City: indifference bordering on contempt.

30 // HAVE A SEAT Money sits down with Pasquale Natuzzi, Chairman and Chief Executive Officer of the Natuzzi Group.

32 // SAND AND DELIVER If and when Libya gets its act together, it can become a tourist hotspot, says Money.

34 // ROOMS WITH A PHEW Money spends a night at Valletta Suites and Hostel Jones to see what inspired their design.

39 // FORT DESIGN Malta Design Week 2014 confirmed Malta's growth as a hub for Mediterranean creativity.

43 // THE GAME IS ON Physiotherapist Milos Stanisavljevic explains what helps you avoid sports injuries.

54 // TURKISH DELIGHT There's one sure thing that gets tourists spending: a shopping festival, says Mona Farrugia.

60 // THE BLUESMAN'S BLOG Justice is for those who can afford it, says The Bluesman.

Read on and enjoy.

28 // THE TOURIST TRAP Conventional wisdom suggests that shopkeepers and restaurateurs bend over backwards for tourists.

For better results this season, Sean Patrick Sullivan suggests an

Editor / Anthony P. Bernard anthony@moneymag.me

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Money / Issue 25

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interview

MORE THAN A NUMBERS GAME Although the tourism industry is thriving, we must not rest on our laurels, Tourism Minister Edward Zammit Lewis tells Veronica Stivala. The key lies in branching out into sports, religious and business tourism as well as focusing on our assets such as the fact that we speak English and that we are a safe and stable country.

T

he tourism industry is doing well, so well in fact that it is breaking records, both in terms of the number of tourists visiting our islands, as well as the sector’s financial contribution.

Tourist arrivals in 2013 surpassed the 1.5 million mark, meaning an almost 10 per cent increase from 2012. Bed nights were up by one million, almost nine per cent. And tourists spent some nine per cent more in 2013 than they did in 2012 at €1.44bn.

Not only that, but Malta surpassed many other European countries in figures, putting it at the forefront of the global arena.

While acknowledging that the success can be attributed to the previous administration, Tourism Minister Edward Zammit Lewis is keen to underline that the positive statistics are specifically attributable to the positive decisions made by the current administration.

“We have been 15 months in government and National Statistics Office statistics recorded a steep increase in momentum in the tourist industry in 2013 and 2014 when compared to 2011 and 2012.”

One notable positive decision includes increased connectivity (five new airlines started operations 8

Money / Issue 25

to Malta and new routes were opened) allowing tourists more flexibility to come to Malta. In addition to attracting tourists to Malta, Dr Zammit Lewis notes how internal tourism to Gozo also recorded increases not only in day trippers but also in tourists who spent more than one bed night on the sister island.

Initiatives taken by the current administration, such as free ferry passages, contributed to increased numbers.

Having said this, Dr Zammit Lewis acknowledges that more needs to be done for tourism in Gozo.

“The market is too reliant on day trippers.

During the previous administration around five hotels closed which were then turned into real estate projects. We want to reverse that project.

Gozo needs more hotel capacity if we want to project it as a destination on its own merits.

There are private investors who are already positioned to make such an investment.”

Indeed diversifying our tourism is key to increasing tourist numbers to the government’s aim of two million visitors a year. The minister

points out how Malta is already headed in the current direction.

“The conference section is doing very well and so much is happening thanks to initiatives taken by the Malta Tourism Authority.”

The MTA’s MICE segment works specifically to promote Malta as a destination for conference and incentive groups. Elaborating on this, Dr Zammit Lewis comments how, “The recent Junior Chamber International conference attracted around 1,300 delegates from 49 countries,” adding that he is determined to use this segment as a solution to fight seasonality in the shoulder months.

“Considering that the best economies are outside the EU, our focus should be to consolidate by reaching out to these markets which will give us a higher revenue yield.”

Of course, tourism is not a numbers game and even though Malta is doing well in terms of tourist arrivals, low-quality tourists, even if they come in thousands, could mean a loss for Malta.

They fly in on a subsidised ticket (Government gives marketing support to low-cost airlines) and their stay in Malta has to be balanced against the cost of infrastructure as well as utilities to host them.

Paul Bugeja, president of the Malta Hotels and Restaurants Association, recently called for an updated tourism vision and a new longer-term holistic strategic plan for the industry.

Dr Zammit Lewis agrees with Mr Bugeja and acknowledges that although numbers are relevant – “they fill hotels” – Malta has “reached a stage where we need a strategic vision aimed towards quality”. He notes, however, that “Government cannot do this on its own and needs the private sector to make that leap of quality which will then in turn ensure better revenue for hotel operators and many who will benefit from the spillover economic effect.”

Initiatives include encouraging private investors

to refurbish hotels, introducing quality labels for restaurants, developing sandy beaches, introducing tourism police, deploying police to sensitive places like Paceville and making sure members of the police force are able to speak basic languages like English and Italian well.

While these initiatives will work to improve Malta as a tourist destination, more needs to be done since the country is competing closely with similar tourist destinations such as Spain and Cyprus.

“We can’t be complacent,” says the minister, “and we are trying to better project our bestselling points such as the fact that we have the second cleanest sea in all EU states, we speak English, and we have a rich culture and heritage. The fact that Malta is a stable and secure place is also a strong selling factor.”

He adds how Malta is trying to enter niche markets such as the sports, religious and conference sector and although we are doing well in terms of food and beverage we need to upgrade the workforce in the tourism sector because tourism goes beyond good food.

Looking further afield, Malta’s next step should

be to diversify where our tourists come from, says the minister.

“We are not happy with the numbers regarding non-EU tourists. Considering that the best economies are outside the EU, our focus should be to consolidate by reaching out to these markets which will give us a higher revenue yield.”

When asked how the sharing economy (airbnb, for instance) is affecting our economy, the minister says that sites for people to rent out lodging were inevitable. The solution, he notes, is to not to try to resist but to accommodate such alternatives.

“The conventional and new tourist services need not substitute each other, but rather complement one another. Different niches can co-exist and tourists have different requests.

The key is that they all offer tourists a good product.”

Money / Issue 25

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interview

A DIVERSIFIED INDUSTRY Shadow Tourism Minister Robert Arrigo’s views on the tourism ministry.

W

e are pleased to see that notwithstanding two different ministers within 15 months, the direction taken up by a nationalist government has not changed. The roadmap, and the tested formula, designed by the previous government have been retained, thus ensuring growth and success.

Shadow Tourism Minister Robert Arrigo

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As a whole, our service is very good. It has improved considerably over the years thanks to institutions like the Institute of Tourism Studies. I did suggest that ITS should venture into training front line people in the trade, and I hope this will be taken up.

Malta’s marketing has also proven to be a success. We have the full brunt of the money allocated, and Malta is at a maximum level of exposure. Our funds must remain concentrated and not diversified into distant markets that need millions of euro to penetrate the market properly.

02 Photo 1 by Pauline Dingli @ ViewingMalta.com Photo 2 by ViewingMalta.com Photo 3 by Cafe del Mar, Malta

"OUR INDUSTRY IS BASED ON DIVERSITY." Tourism was, is, and will remain a numbers game. No airline, no operator, no hotel would still be standing without the numbers game. Government gives a subsidy only to low cost airlines, and not, if they fly from a different airport, attracting a different and additional catchment area. If a low cost flies from Rome, there is no subsidy. A low cost carrier does not get low spending clients.

Malta is not a total place for just high-end tourists. Our industry is based on diversity.

We should attract 170,000 clients a month, each month, for 12 months.

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Money / Issue 25

The government has found all the mechanism in place to work with the private sector, which is the pillar of the industry. The fact that nothing has been changed proves the correct partnership was struck years ago.

education

LESSONS TO BE LEARNT Malta needs to further explore education tourism, says Reuben Buttigieg.

Reuben Buttigieg is managing director of Erremme Business Advisors and President of the Malta Institute of Management

E

ducation tourism is not a new niche for Malta. Some might recall the various foreigners coming to Malta particularly from Libya in the 1980s. Later, other types of tourism education developed, particularly with the evolvement of English language schools.

Regrettably however, it seems that Malta lost interest in education tourism which is not English language learning.

The previous administration had promoted Malta as a centre of excellence in education. However, we never saw a strategy in this sense. Educational institutions enthusiastically waited for this strategy. Today it seems that no one is thinking in this direction, although on June 16 of this year, during the official opening of the London School of Commerce, the Prime Minister reiterated the intention to render Malta a centre of excellence in education.

The time is ripe to formulate such a strategy as there needs to be a clear way ahead if Malta is to succeed in developing this vision. We already have experienced some positive developments in Malta following the Arab revolution. We should build on what was done and encourage more incoming students.

The Maltese Government has a role to play in the formulation of this strategy particularly if we want to achieve a coordinated effort to synergise our resources. On the other hand entities should be creative in their approach of encouraging

foreign students to study different subjects in Malta. One area which has not been tapped into well enough by Maltese entities is EU funded programmes. Perhaps, EUPA will engage in a better strategy to encourage entities to tap into these funds.

On the North African aspect, one will recognise that various Maltese have interests in the area.

There are some who have managed to strike inroads but as a country, we have not found ways to collaborate and use the networks we have. On many occasions, the Maltese seem unwilling to collaborate and the majority will keep their contacts to themselves. In spite of this, there are other opportunities that the Maltese should look into particularly in the education sector. Certainly one needs to formulate a strategy that foresees all the risks involved.

Malta’s opportunities go beyond the Mediterranean. There are various countries that are investing in the education of their population and governments are giving grants for students to go abroad. This normally falls within some national action plan. For instance, India is investing highly in educating its tourism sector as it wants to develop this sector. In GCC countries there are programmes such as Omanisation and Qatarisation which certainly are interesting for Maltese organisation as these provide funds for their people to take over in various sectors. Some Maltese did take the initiative to go there but will Maltese education bodies be smart enough to synergise and bring students over to Malta?

Certainly more willingness for collaboration is needed in Malta.

“Entities should be creative in their approach of encouraging foreign students to study different subjects in Malta.�

The Malta Institute of Management is promoting itself as a centre for such synergies.

On its 50th Anniversary, more than ever before, MIM is seeking to collaborate with as many organisations as possible. Indeed recently, MIM has reached agreement on entrepreneurial, IT and accountancy education as well as on

opportunities for young managers.

MIM believes that through these collaborations it not only creates opportunities for Maltese students but also builds a network through which it can attract more foreign students to Malta. Furthermore, this foreign interaction will be indirectly creating an international network for Maltese participants to the events.

MIM is working with various international organisations in this area. By way of example, through its collaboration with Dar Al Shariah and ASSAIF, MIM has attracted a number of students on Islamic finance from various countries such as Azerbaijan and Saudi Arabia. Another example is the outreach that MIM has engaged into with its collaborating partners through which it is reaching various organisations particularly in Italy. One would encourage anyone interested to collaborate to contact MIM, which has an open door policy for ideas and collaboration.

With this collaborative frame of mind, MIM has also entered into a venture with the General Workers Union that promotes incoming tourism, with a special focus on education and business tourism. This collaboration has so far benefitted not only the two organisations but also various organisations that saw this as an opportunity to collaborate to attract to our country conferences, courses, seminars as well as other educational programmes.

Money / Issue 25

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hospitality

THE RULES OF ATTRACTION What attracts people to Malta? That is the key question, says Christopher Gingell Littlejohn, Director of Sales and Marketing, InterContinental Malta.

Is having peak tourist numbers in summer and low figures in winter a sustainable model for Malta? Most of the profitability in

InterContinental Malta's Director of Sales and Marketing Christopher Gingell Littlejohn

the local hospitality sector is generated in the peak months from April to October, while in the shoulder months, there is a natural drop in arrivals.

To explain this pattern, we must first of all need to see what Malta, as a destination, represents.

The truth is that Malta as a destination is led primarily by its climate. And it works. In the warmer months, the weather continues to lead the strategy: we offer competitive prices, still representing good value and as a result manage to attract significant numbers.

In the shoulder months, we suffer from an identity crisis. We try to package Malta in different ways, from a cultural, historical destination to one which caters for various other niches such as conference and incentive travel. We try to be a little bit of everything to everyone. Niche markets are indeed lucrative, but the question remains: what do we stand for? Why should people travel to these islands in the middle of January? The meeting niche is led by a client need to meet. It is industry that provides to fill that gap. The question that, in my view still needs answering is: why Malta? The answer isn’t that straightforward, and quite frankly I don’t have an answer: however working around the creation of annual events would be a good start.

How can Malta attract more quality tourists? First we need to define quality. In my view, quality is the capacity to spend money. Every tourist has the potential to be a quality tourist. It’s true that certain elements, such as history, culture, yachting services and lifestyle attract what are perceived to be ‘quality’ tourists, but are they? At the end of the day, we set the price and therefore it is our decision as to what quality of tourist we want to attract.

Is the local education system nurturing enough talent to support the hospitality industry? This Institute of Tourism Studies

educates good people for the hospitality industry. The key issue, in my view is relevance. Is the local industry still relevant to school leavers, particularly talented ones? Retaining talent and meeting aspirations remain the two key challenges we continue to face. Talented people usually move abroad for specialisation, and stay there. We need to identify their aspirations, which are not purely financial, and meet them in order to retain them within the local industry.

Moreover, the education system has to keep abreast of the industry trends.

The curriculum should reflect current trends and offer tuition in subjects whose relevance has increased exponentially over the past years. Revenue management springs to mind.

"WE SET THE PRICE AND THEREFORE IT IS OUR DECISION AS TO WHAT QUALITY OF TOURIST WE WANT TO ATTRACT." What will be the tourism trends of the near future?

For the past two to three years, we have attracted record figures.

One primary driver for this has been the impact of external market forces limiting demand in our competitor destinations such as the Arab Spring. We need to quantify these numbers and work on a more sustainable model which forecasts future shrinkage relative to the eventual increased supply and appeal of competitor destinations such as Egypt.

What are the main challenges that local hotels are facing? As a five-star hotel,

that of balancing private investment with product Malta. Another, more immediate challenge is anticipating trends and planning for them. We must keep in mind that Malta will remain largely a leisure destination.

What shall continue to change is how people choose to book their vacation: the reasons for doing so in the first place remain unchanged. In this new reality, a hotelier’s ability to influence and control the market shall, in my view, be one of the major challenges we will face.

People cite last-minute trends as a challenge, but I disagree: it is forecastable. We can still plan.

our habitual challenge remains

Money / Issue 25

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hospitality

A SUSTAINABLE INDUSTRY Malta has all the prerequisites to attract quality tourists all year round, says Matthew T Mullan, General Manager, Hilton Malta.

Hilton Malta's General Manager Matthew T Mullan

Is having peak tourist numbers in summer and low figures in winter a sustainable model for Malta? It’s important to maintain our

peak season numbers but it’s imperative for the destination to find ways of lifting up the volumes and increasing demand in the low and shoulder season in order to ensure sustainability. This is the only way that hotels can improve on their profitability and hence have resources for upgrades and product enhancements.

How can Malta attract more quality tourists and tourists in the shoulder months? I strongly believe that Malta has all the prerequisites

to attract quality tourists all year round not just in the shoulder season. The trick is to focus on the island’s unique selling points, one of which is the genuine hospitality of the people but also the island’s wonderful heritage.

What we need to do – in my opinion – is to invest in training and coaching to increase the level of professionalism without losing the genuine touch.

For us here at Hilton the team members’ well-being and training is a major part of our day-to-day life.

Thus we ensure that not only do our guests get the best level of service but our team members can develop their careers and move ahead as well.

Are niche tourist markets being explored enough? You can never

say that you have done enough. The moment any of us do that, we will start losing ground. The improved numbers over the last years are a result of continuous efforts from the authorities, MTA, MHRA, individual hotels and agencies to increase seat capacity and promote the islands. The space available for sale in low and shoulder season indicates that there is still a significant amount of work that needs to be done in order to increase the demand for these periods.

The data at hand shows that 40 per cent of all annual arrivals to Malta are concentrated in 25 per cent of the year: June to August. The average total occupancy in hotels for Q1 stands at 43 per cent and Q4 at 52.5 per cent.

This is significantly lower than that achieved in Q2 (68.4 per cent) and Q3 (82.2 per cent). In Q1, this represents a total average of 17,941 bed nights left unsold each and every day and totalling a staggering three million plus bed nights between Q1 and Q4.

These numbers indicate that as an industry we need to collectively put emphasis and focus on Q1 and Q4 volumes. Business generation as well as niche markets like association meetings, cultural events and international industry meetings would all help increase demand in these periods.

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Money / Issue 25

Is the local education system nurturing enough talent to support the hospitality industry? I have only been in Malta for seven months now so I think that giving an opinion on the education system at this stage may be presumptuous. However, training, education and learning are extremely important for any country and not for tourism alone. Malta’s successes in the last years indicate that some very good work in education has and is being done.

What will be the tourism trends for the near future?

The industry is changing at a pace that even those of us who are working in it every day sometimes feel that we cannot keep up. This industry will continue to grow and travellers will become more demanding as today they are able to better research their travels and know more before they get to their destination. Hence they arrive with very clear and high expectations of what they are expecting out of their trip.

What are the main challenges that local hotels

are facing? Sustainability is one of the main challenges – not only here in Malta – but in any destination where you are faced with such a fluctuation in demand. Containing costs in all areas such as utilities is very important and challenging for any hotelier.

Getting our clients here is another challenge that is maybe a bit more specific to Malta, being an island.

The numbers we are enjoying today would not have been possible without the increased seat capacity achieved over the last few years: growing capacity from both low cost and legacy airlines is critical in order to ensure a good spread of options for our potential guests to choose from. This does not only benefit the hotel or tourism industry: better connectivity makes Malta more attractive for foreign direct investment in all areas.

Human resources are also limited due to the size of the island and population as well as the success in other areas of the economy that are attracting people away from the industry and any effort to promote a career in tourism needs support to help alleviate this.

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interview

THE SPIRIT OF A MAN Making vodka in wine and cognac country doesn’t sound like a good idea. But Francois Thibault persevered and created the recipe for GREY GOOSE vodka. Money drinks to his health.

L

ast year, as part of its global campaign, Grey Goose vodka launched a 90 second video satrring Francois Thibault, the Frenchman who developed the recipe for the super premium vodka.

A laudable achievement, you might think. Yes, for us, but no – apparently for many years – for the French. And that’s because Thibault had the courage, or audacity, to make vodka in France, traditionally a wine and cognac country.

Like in all good stories, there is a happy ending, both in the video and in real life because eventually, the French came around after the super premium vodka became a bestseller.

Born and raised in Cognac, Thibault comes from a family of winegrowers and learned, from an early age, the art of the grape. How much did his birthplace and upbringing influence his eventual choice of career?

“My parents and the food and wine heritage of where I was born were certainly a huge influence. Nature was also an important educator: from an early age, I could see the effects that time and terroir have on what we eat and drink.”

After pursuing the necessary studies in Bordeaux and Burgundy, in 1982, Thibault started working as a young technician in a small cognac company.

The GREY GOOSE evening at Dolce Vita celebrating its success in Malta together with their distributors , P. Cutajar & Co. Ltd. The event was organised in collaboration with Hugo Boss Malta (VF Group).

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Money / Issue 25

“I could have chosen to work in wine.

However, I preferred a closer contact with cognac. Apart from the fact that it is part of the heritage of my birthplace, Cognac, I find the process of distillation more elaborate and interesting than producing wine. On paper, the difference is just one word: to make wine, you need grapes and fermentation, while to make cognac, you need grapes and distillation. But in practice, the process is very different.”

In 1992, Thibault received the title of maitre de chai.

“To become a maitre de chai, you don’t need a certificate or read for a degree. You get the title from experience. As a maitre de chai, you are responsible for everything involving the making of cognac. But above all, you are responsible for passing on your knowledge and experience to the next generation. It’s an inherited title, passed on from one generation to the next,” he says.

One of the clients at H. Mounier, where Thibault worked, was Sidney Frank, who imported liquor from Europe into the United States. Thibault worked with Frank in the creation of the cognac Jacques Cardin as well as other cognac and brandies. Then in 1997, Frank approached Thibault with a new idea: to create a super premium vodka.

“Frank’s idea was ingenious,” Thibault says.

“He looked at the market and saw that, while everyone was drinking vodka, there was no super premium vodka available. So he decided to make one. The revolutionary aspect of Frank’s idea was that he wanted to create the vodka in France, using the best skills and ingredients available.

“I only accepted Frank’s proposal because he gave me the freedom to create the best vodka in the world. It was a beautiful challenge: to use the best ingredients and all my experience to create something new. And we did: we created the world’s first super premium vodka. Everyone thought we would fail. However, we not only created a vodka: we created a whole category. So successful is this category that nowadays, super premium vodka has 20 per cent of the vodka market.”

“It was a beautiful challenge: to use the best ingredients and all my experience to create something new.”

done to hide bad aromas and give the vodka a thicker texture. To enjoy Grey Goose at its best, keep it in temperatures from zero to five degrees and drink it on the rocks with lots of ice: the ice doesn’t melt and keeps the vodka at a stable temperature. You get the taste without diluting it.”

SUCCESS, STYLE AND CONFIDENCE But what classifies Grey Goose as a super premium vodka?

“First of all, there is the choice of ingredients.

The wheat we use for Grey Goose is soft winter wheat sown and harvested in Picardy. There are also the distillation methods that we use in order to concentrate the quality of those ingredients. Take our flavoured Grey Goose vodka, for instance. People always ask us why our flavoured Grey Goose vodka has the same clear colour as our classic vodka. And that’s because for L’Orange or Le Citron, we use real fruit. We don’t recreate the flavours: we use nature itself. We capture the real taste of the fruit and the nature that surrounds it using a method which enables us to take the aroma and flavour of a fruit, but not the colour. It’s like when a chef creates a main course: the vodka is the main dish and the flavour is the sauce.

“A super premium vodka is about high quality ingredients, the process and price, which is its commercial aspect. However, you don’t simply create a super premium vodka by hiking up the price. That on its own doesn’t make a super premium vodka.”

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So, the all important question: how best to enjoy Grey Goose?

“Historically, vodka is frozen. But that is only

Money / Issue 25

19

marketing

EMOTIONAL LUGGAGE We can create a strategic point of difference by nurturing Malta’s emotional assets, says George Larry Zammit.

George Larry Zammit is Marketing Manager at Arkadia Marketing Limited and a chartered member of the Chartered Institute of Marketing.

I

f visiting Verona, a stop at the Casa di Giulietta is a must. The 14th century house is one of the town’s main tourist attractions where tangibly all you can see is an open courtyard featuring a baroque stone balcony and a bronze statue of Juliet. Juliet of course is from Shakespeare’s Romeo and Juliet and the stone balcony is supposed to be the place where Juliet would wait to be serenaded by Romeo.

The funny thing about this attraction is that Shakespeare never visited Italy let alone Verona. But considering he chose to use Verona as the location of his world renowned love story, some people in Verona took the opportunity and converted the house to Juliet’s family residence and made the story

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Money / Issue 25

The padlocks outside Juliet's house in Verona

Writing on a wall at Juliet's house in Verona

theirs. Quite Machiavellian - but then who cares. Did Shakespeare ask the permission of the Comune di Verona to use their town as the backdrop of his literary masterpiece?

At the Casa di Giulietta everybody wants to touch the breast of the bronze statue of Juliet as legend says that it gives you fortune in love.

In the same courtyard there is a small souvenir shop which sells branded merchandise as well as padlocks and permanent markers. But what are you supposed to do with a padlock or a permanent marker? To write your name and that of your loved one of course on the padlock and lock it on the big gate which covers one of the walls of the courtyard.

Verona is a great example how the destination successfully created emotional assets which define itself. You don’t visit Verona because it is cheap and cheerful. You don’t visit the town because it is conveniently located between Milan and Venice.

No, you visit Verona because you are in love and you want to make a statement to your loved one.

You want to recreate the romance of Romeo and Juliet. You want to make your own romantic story. You want to be the main characters in Shakespeare’s next imaginary masterpiece.

Thanks to Shakespeare and the story of Romeo and Juliet, Verona has positioned itself as the Italian city of love. People specifically visit the town to see the Casa di Giulietta. But another export that has developed throughout the years is the considerable number of bridal shops that have opened within the town, as well as the popular tradition of visiting Verona to propose for matrimony and even getting married.

Why do travellers choose a destination? A common school of thought is that vacationers select a destination because it is cheap and easy to reach. Price is the main motivator as it is within their budget and will cost less than visiting somewhere else. True that in many instances this is the case, but do people visit Paris because it is cheap? Or the same could be said about Rome or London? Maybe an African safari too can be a cheap and affordable vacation option.

Sarcasm aside, people choose these destinations because they possess valuable emotional assets that one wants to see and experience at least

once in a lifetime. Price is secondary as the emotional assets of these destinations become the main point of difference between other rival destinations. People choose such destinations because they are must visit places in their holiday ambitions. Irrelevant of the cost, such travellers will make their best effort to turn their dreams into reality.

One destination marketing campaign to take note of is the one sponsored by the Alaska Travel Industry Association in 2005. Alaska

and inspires travellers to make that holiday of a lifetime.

Getting down to our point: we regularly ask ourselves why travellers choose to visit Malta. Is it just because of the obvious sun and sea? Is it because fellow Europeans don’t need a travel visa and we are just a two to three hour flight away?

Or is it because Malta is a low cost option where you can go on holiday with a few quid?

Unfortunately most travel operators are sucked into a silo by basing the unique selling proposition of their holiday package on price.

True that market conditions are tough and price dictates where travellers choose their next destination. True that operators are constantly challenged to reach their sales targets. Price was, is, and will remain an important factor in choosing one’s next holiday destination. And true that several travellers are rational decisionmakers motivated by price. But what happens when other destinations decide to take the aggressive route and lower their prices?

That is why a lot of work has been done by key stakeholders within the tourism industry in Malta to create and manage emotional assets which define Malta as a destination. A few examples are the renaissance of the Three Cities, Valletta as an upcoming European Capital of Culture, the annual Isle of MTV concert, and Malta being home of the Maltese tenor Joseph Calleja.

is quite out of reach to typical Americans let alone for other citizens of this planet.

Notwithstanding the limited accessibility to the north western peninsula, Alaska is one of those places which Americans have an affinity to and wish to have the opportunity to visit at least once in a lifetime. Alaska has an abundance of scenery and wildlife. The state nicknamed as the last frontier is certainly not just renowned for Sarah Palin and her famous hockey moms.

The campaign concept utilised a typical licence plate as if it were issued by the state of Alaska. The license plate was personalised with a combination of letters and numbers “B4UDIE”. In other words the graphical concept communicated that one should ‘visit Alaska before you die’.

With a budget of just $180,000 for billboards and a website, the campaign created a lot of interest and effectively connected with peoples’ emotions. The campaign set the tone that Alaska is a place to visit sooner rather than later. Alaska’s natural habitat and wildlife are its emotional assets which define the destination

A lot still needs to be done to ensure more emotional assets are managed and stand out to further distinguish destination Malta. One can mention Fort Saint Angelo and Fort Saint Elmo as catalysts of the Great Siege of Malta. The Ggantija temple in Gozo is another example as one of the oldest free-standing monuments in the world, even older than Stonehenge and the Egyptian pyramids. Aren’t these sites a must visit in a lifetime once one understands their context to the history and heritage of our planet?

The current Malta Tourism Authority campaign ‘Malta is More’ is an effective attempt to support the idea that destination Malta is much more than sun and sea. In our small group of Mediterranean islands, one can enjoy and discover many emotional assets. These assets strengthen the brand Malta proposition and create that much needed point of difference from our competitors.

Travellers are more informed and knowledgeable than ever on the next potential destination they would like to visit. Their next holiday is not just

a visit or stay. For travellers the next holiday is an investment to make a discovery. A discovery that leads to an emotional experience.

There are four types of pleasurable experiences.

The first is a sensory or physical pleasure such as coming to Malta to scuba dive, learn English, or discover our Mediterranean kitchen.

A second type of experience is by social pleasure through interaction with others such as the local village feast, going to an Isle of MTV

“A lot still needs to be done to ensure more emotional assets are managed and stand out to further distinguish destination Malta.” concert, or going on a boat trip.

A third type of experience is through emotional pleasures borne out of feelings, ideas, or mental images. Having the opportunity to see Caravaggio’s beheading of St John the Baptist is an example. A close encounter with our religious processions is another example where pageantry, passion, and intricate tradition are the norm.

A fourth and final type of experience is an intellectual pleasure by appreciating the complexities of a destination. Understanding Malta’s strategic significance during the Great Siege and World War II are a case in point.

Knowing your history, a visit to the Upper Barrakka in Valletta is a sensation as you can easily imagine the initial orientation of the Grand Harbour during such defining moments in Malta’s history.

Such pleasurable and social experiences can easily be offered by any destination. It is through emotional and intellectual pleasures that a destination creates a competitive edge. This is how a destination positions itself as unique – that it is not substitutable. This can only be maintained through a consistent emphasis on the importance of emotional assets that add value to the visitor experience and brand proposition.

Quality, creativity and originality must work hand in hand to ensure Malta delivers a distinctive experience that visitors will neverendingly recount their holiday experience with their family, friends, and co-workers.

Money / Issue 25

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INC R E AS I N G R E T U R N S BY INV E ST I NG I N EQUITIES The current market provides a good entry point for equity investors, says Kristian Camenzuli.

Why should an investor consider investing in equities at this point in time?

Bond prices are trading at all-time highs, making it harder for investors to earn adequate returns.

On the other hand equities continue to deliver attractive returns. In 2012 and 2013 the major European equity indexes returned 14 and 18 per cent respectively. Although in my opinion equities should generally be purchased with a medium-term mindset, the European benchmark index, the Euro Stoxx 50, has already returned five per cent to shareholders this year. I believe that the markets are currently still at the early recovery stage, making it a good entry point for equity investors.

Do you consider European equities to be attractive at the moment when compared to the US markets? Today’s integrated

markets make it easier to transfer funds between the two regions. Global markets mean that sales in the EU depend on consumption in the US, making the two economies more interlinked than ever before. However, in the short-term the EU probably has more growth potential due to the fact that several of its member states are only now emerging from a recession. This is considered a good entry point for investors.

What kind of returns should an investor expect to earn in a year from the equity markets? This depends on the current market

situation. However, the expected return is positively related to the risk of a stock. The higher the risk, the greater the return an investor would expect in order to take on the risk. Last year the Euro Stoxx 50 returned 18 per cent to shareholders. In a market that is trading

positively overall, an expected return from a diversified equity portfolio in any one year of 10 per cent is reasonable. Single individual shares could perform far better or worse and this is why it is important to have a good stock selection strategy.

What’s the difference between an equity that pays out a dividend and one that does not? A company can choose whether to pay out a dividend or not. Normally those companies that pay out a dividend are value stocks trading in mature markets such as utilities and financials. On the other hand, growth stocks generally do not pay out a dividend because they use the cash to invest in future projects.

The bottom line is that investors should be indifferent as to whether they receive a dividend or not because once the dividend is distributed, the share price should theoretically fall by the value of the dividend.

How can an investor identify whether a share is attractive or not? A company’s

earnings, its track record, financial ratios and company prospects are all indicators of a firm’s worth. However, if you do not have the time to monitor investments, my recommendation is to either seek independent financial advice or invest in an equity fund that meets your requirements. It is also important that investors understand the business and the strategy of the company they are investing in and keep updated with the progress the company is making.

When should I review my equity portfolio? This depends entirely on your

strategy and what type of investments you hold. Any investment portfolio that contains equities should be reviewed regularly. Warren Buffett, the billionaire investor and chairman of Berkshire Hathaway recommends a buy and hold strategy however there may come a time when an investor should consider realising profits and moving on. An investment professional can provide guidance with regards to market timing while reviewing your portfolio.

Should an investor choose to invest in an equity fund rather than individual names? If an investor does not have the

expertise or the time to form a view on the market and carry out valuations on individual stocks, it would be best to invest in a fund. A mutual fund is managed by professionals whose job is to monitor the markets on a daily basis and carry out in-depth analysis of the markets.

Kristian Camenzuli is an Investment Manager at Calamatta Cuschieri specialising in blue-chip equities. He co-manages Calamatta Cuschieri’s Euro Equity Fund and carries out in depth analysis on international equities. He is also an Investment Manager for other funds for which CCIM is appointed Investment Manager and sits on a number of investment committees.

Calamatta Cuschieri is one of Malta’s largest financial services firms. The company offers a wide range of services including independent investment advice, live online trading, saving plans, investment management and fund services. www.cc.com.mt Money / Issue 25

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branding

DEVELOPING YOUR BRAND ASSETS Dr Nadia Theuma and Edwin Ward are developing tools for country brand managers to analyse and grow their brand assets. They will be presenting their joint research at the Tourism Research Symposium being held in Malta this month in conjunction with the University of Westminster.

tourism stakeholders, is a member of AIEST, Interpret Europe, ISTO, ATLAS, ATHE and NECSTOUR, and was instrumental in setting up the Slow Food Movement in Malta.

Dr Theuma and Mr Ward’s groundbreaking paper deals with a subject that many national and regional tourism entities have grappled with at some point in their existence: What new brand assets can we identify and develop for tourism in the Mediterranean?

The research, which began earlier this year, is already yielding interesting findings and both authors will be presenting the initial work during the two-day Tourism Research Symposium & PhD Colloquium being held in Malta this month in conjunction with the University of Westminster. Other speakers at the Symposium include Hon. Edward Zammit Lewis, Minister for Tourism, Professor Jeremy Boissevain, Professor Andrew Jones, Professor John Tunbridge, Professor Gregory Ashworth and Dr Andrew Smith.

Theuma and Ward assert that the words ‘country brand’ are thrown around liberally in different contexts. So what exactly is a brand?

Brands, they say, have been in existence for over 1,000 years with the first country brand being that of the Roman Empire. A brand is a set of associations that consumers make with a product, service, entity or idea. These associations may be from marketing touchpoints or even out of an entity’s control. Brands with symbolic embodiments such as a logo, symbol, font and colour may be developed to represent implicit values.

M

altese academic Dr Nadia Theuma, Director of the Institute for Tourism, Travel and Culture at the University of Malta, and her colleague from the private sector Edwin Ward, Country Director at Ogilvy Malta, are presenting a joint paper at the Tourism Research Symposium being held in conjunction with the University of Westminster this month. This puts Malta on the map as a research centre into brands and how those brands impact on country branding and the strategic success of country brand development programmes. The two authors are developing the first dedicated Mediterranean Brand Index and a Country Brand Asset Dashboard as part of their study, funded by the University of Malta.

Under Dr Theuma’s dynamic management, the Institute for Tourism, Travel and Culture is a fast-growing part of Malta University’s campus

and recently moved to an expanded wing in a purpose-built facility. ITTC is focused on the teaching of tourism studies at tertiary level at the University of Malta. Since its establishment in 1995, the institute has been responsible mainly for training people in tourism, heritage management, cultural issues and socioeconomic impacts of tourism. Over the years, the institute has also been active in research and its members have assisted the Ministry of Tourism and the Ministry for Culture in developing a sustainable tourism product. The current team of lecturers and researchers is involved in cultural heritage, cultural routes, cultural products, media and arts, tourism SMEs, tourism employment issues, labour studies, island sustainability and tourism economics.

Based on their research, Theuma and Ward cover academic interest in Mediterranean branding starting with Dahlén, who suggests brands are built on emotional platforms that build powerful characteristics. The international marketing landscape is changing, branding today is revolutionised, brands are embedded in aspects of consumer life, and it’s a lifestyle. With continuing advancements in technology, many consumer products have become a commodity – there are fewer tangible differences between competing offers. Theuma and Ward will show that this is the case for Mediterranean country brands, commodified in terms of sun and sea, lacking differentiation except on cultural and historical dimensions, and seeking ways to compete, even with one another in the global market.

The institute works closely with local

A marked difference exists in the commercial Money / Issue 25

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development of Southern European country brands for tourism versus North African and Eastern Mediterranean destinations. Authors such as Braudel (1975), Montaria (1995) or Pechlaner (2000), Apostolpopolous et al (2000) use the term ‘Mediterranean destination’ referring to all the countries bordering the sea in question – a total of 24 – and not just to those in the southern part of the European Union. Among the main difficulties in profiling and understanding the Mediterranean area as a global tourist destination, Pechlaner (2000, 412-413) cites differences in tourism development between countries: “The Mediterranean region is undoubtedly one of the largest and best known destinations worldwide. However, its popularity is based on individual products belonging to the countries of this region; the different situations from which tourism parts in each of these countries constitutes a major factor with regard to the problems of global development as a homogeneous destination due to the different levels of development of market-oriented products.”

Going forward, brand strategy will require focus on how to develop and express brand assets and characteristics. In this study, as it is defined, EU Mediterranean countries such as Spain and France possess stronger brand equity which allows wider response to develop innovative approaches to tourism branding problems. Later entrants such as Greece, and those with a me-too approach, rely on price and regional instability to bolster short-term demand. Longer-term brand development issues are more pressing in these situations.

“The richness in the variety and multiplicity of supply available in the European Mediterranean area is a fundamental element of added value” The element that poses a significant obstacle to the tourist vision of the Mediterranean is the existence of similarities between the touristic offer of the countries bordering the Mediterranean due to the fact that they share similar geography, climate, culture, and other similarities. The difference is that the emerging destinations in this area have competitive advantage, being able to offer lower prices than the traditional destinations discussed as well 26

Money / Issue 25

as learn from their elder sisters on what they should and should not do in order to create their own brand. Brand identity resources that can be leveraged to combat competitive forces will be examined in detail by Theuma and Ward.

Southern European Mediterranean countries are in an advantageous position compared to countries on the other side of the sea, using it as an element of differentiation, and of connection and similarity between them, such as the transmission of a sense of security to tourists.

The perception of these countries as a safe destination for the tourist through a countrybrand strategy is a short-term response: riots in Greece, as well as criminal activities and earthquakes in Italy, and immigration problems and bombings in Spain make the safety claim more spurious. This is differentiation which depends on regional instability. Following the Arab Spring stakeholders in the non-EU Mediterranean nations are grappling with problems of country brand presentation and are in an excellent position to undertake innovative development work on their national and country-brand identities.

Authors like Tresserras or Valls refer to instability and terrorism phenomena labelling tourist destinations outside brand considerations but within commercial parameters: “In times of war, tourist destinations are divided into critical (heavily penalised for it) and shelter (picking up the tourists that are afraid to go to the affected areas).” (Valls 2005, 164)

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There is a stronger tendency toward the search for the exotic – yet the majority of tourists will not give up comfort and safety of travel to get it. Desires to have emotional connections with brands are forcing country brands to be more creative with their approaches. McLoughlin argues that corporate attitude, attributes and customer benefits are the associations that have relevance for consumers to become brand loyal. Theuma and Ward investigate this in the tourism landscape of the Mediterranean and seek to identify whether additional brand identity characteristics contribute to meaningful differentiation and loyalty for Mediterranean country brands using Malta as their departure point.

Reference to the Country Brand Index (CBI 2013) and prior, among the practical conditions (needs), that people prioritise when choosing a country to visit, a list of attributes are identified and tracked. How are these used? A CBI index for all the Mediterranean countries exists only in abstract. The leading Mediterranean destinations such as France, Spain and Italy, who incidentally ranked in the top 10 destinations for the past four years, get significant attention, along with Greece and to a lesser extent Turkey, Israel and Egypt. Many others have little trackability and while reputation remains weak or negative in some states, no serious investigation of brand characteristics has been undertaken. This is part of the gap that Theuma and Ward are setting about to fill.

Writers such as Gonzalez-Soria and Moreno de la Santa (2004, 13), Capacci (2000, 21), Gilmore (1996, 10) or Smith et al. (1995), refer to the importance of the element of “security” of destinations, reinforcing the idea presented in this research about the integration of core identifying brand characteristics in the country brand strategy.

series of destinations close to each other and very similar, which use the brand “Caribbean” as a common denominator to determine the ranking of brand characteristics and their similarity or deviance from characteristics utilised in the Mediterranean. Theuma and Ward specifically deconstruct the brand positioning associated with certain destinations to view tourism value, appeal and competitive advantage.

The authors argue that the richness in the variety and multiplicity of supply available in the European Mediterranean area, which they call “multi-motivational supply”, is a fundamental element of added value and comparative advantage and competitive with these other sun and beach destinations.

However, further innovation is required in brand identity resource development to bring additional sustainability to these EU Mediterranean brands. Luxury country brands are singled out for their quality characteristics as well as engineering of the aspirational brand assets. The authors posit that developing new differentiators will generate wealth, development of infrastructure and labour, extend the multiplier effect of tourism and deepen consumer engagement.

Theuma and Ward highlight differentiating features – variety of tourist typologies linked to unique experiences and feelings – which respond to a multi-motivational demand, making use of the area’s situation and providing differentiation from other tourist areas; profiling possible sources of brand asset development for the future that assists in rejuvenating and refreshing established country brands consistent with Morgan et al. (2004), “adapting them to the new features of today’s constantly dynamic market.” In this regard, Memelsdorff (1998, 75) refers: “Today a service management based on the pure and simple sale is doomed in the short term, and is being replaced by strategies that link attraction, sales, satisfaction and customer retention.”

Therefore, this new country-brand asset development methodology is oriented toward meeting the needs of tourists, serving different market segments and niches, through a multimotivational offer and boosting its image toward mature as well as emerging markets and working in a more successful way toward meeting the needs of a new tourist typology, which profiles itself as a more dynamic tourist with a multimotivational demand.

Anyone wishing to contribute to this research project may contact Dr Theuma at ITTC at nadia.theuma@um.edu.mt and Edwin Ward at edwin.ward@um.edu.mt or via the Ogilvy Group on 9920 7677.

Photos: DOI, Daniel Forster / Rolex, Samuel Rondot, Maurizio Modena, Rene Rossingaud

Theuma and Ward argue that we should look at all aspects of the hexagon and see where the Mediterranean region stands and then how the individual countries stand as well. In short, through expansion of brand assets, brand strategy can be modified with the goal to differentiate holiday tourism in a Mediterranean context.

Throughout the Mediterranean basin, tourists seeking sun and sand can find a similar offer, differentiated by lower prices and the extension to the all-inclusive concept, mainly in the countries of North Africa and in Turkey.

With respect to the traditional holiday destination for tourists seeking sun and beach, the Mediterranean’s main competitor is the Caribbean. Investigating this brand image, Theuma and Ward seek to understand a second Money / Issue 25

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opinion

THE TOURIST TRAP Conventional wisdom suggests that shopkeepers and restaurateurs bend over backwards for tourists. For better results this season, Sean Patrick Sullivan suggests an alternative already practised in Paris, Moscow, and New York City: indifference bordering on contempt.

M

ay I be candid? I find tourists exhausting.

This applies no matter who the tourist is, where he or she is from, how friendly he or she may be. All those questions! I don’t want to be the one who goes down in Facebook history as the one who suggested a cafe that ended up falling flat, a hotel that turned out to disappoint. Much better, I think, to simply discourage people from visiting in the first place.

Recent conversation between a friend from the US and myself: “Oh. Next month? Well, yes, of course. It would be lovely to see you. It’s just that... well, you know, if you’re going to visit, why not wait until autumn? The leaves are so lovely when they turn colour. Yes... yes... alrighty then... see you in October.”

Usually, October – or whatever redirect I’m able to manage in a given situation – never happens.

To take it even further, I can’t stand the idea of being a tourist either, which is why I tend to avoid holidays to remote or exotic locations.

Instead, I just save my money and move to a new city every five years. This has most certainly informed my consulting work.

For instance, I recently met with a local farm-tofork restaurateur with an already loyal following, with long queues down the street from time to time. Of course, there were quieter nights as well – disturbingly, hauntingly slow ones – so he asked if it might be wise to tap into our region’s new-found popularity amongst foodie tourists.

“A recipe for success” he called it.

Or a recipe for disaster, into which it might very well have turned if those theoretical tourists were to make those queues even longer, alienating locals. Better, I suggested, to focus 28

Money / Issue 25

"FOCUSING UPON LOCALS AND THE RETURN BUSINESS TENDS TO RESULT IN A MORE EVEN REVENUE STREAM." upon return business, which promised to stabilise revenues more reliably while providing him, as executive chef, more opportunities to explore and experiment with his menu.

He listened, business is steady, feedback is positive, and he’s creatively fulfilled. Which is why he suggested that I share with you, dear reader, all the reasons, financial and otherwise, why the best approach to a brisk tourist season is to pretend it’s not happening.

North American correspondent Sean Patrick Sullivan is a writer, thinker, and speaker whose topics include design, culture, business, technology, innovation, and sustainability.

He lives in the Toronto area and works as the editorial director of The BAO House, a media-production, brand-development, and communication-consulting studio.

1

You’re concerned about profit.

For many (if not most) shopkeepers and restaurateurs, high season represents an opportunity to generate much more

revenue than any other time of year. But that comes with extra costs – staffing up and then back down; advertising and promoting to outshine the competition – that reduce actual profit. By contrast, focusing upon locals and the return business tends to result in a more even revenue stream. Also increased: open, honest feedback of the variety only a neighbour can provide.

2

You’re concerned about stability.

While this may sound a bit apocalyptic, it’s always prudent to at the very least consider the impact of building one’s business around a tourism model, only to have world events render that very same tourism difficult or inadvisable. This isn’t a concern in my current Canadian location.

But, when I was headquartered in New York City, immediately after the World Trade Centre attacks, many excellent bars, cafes, and restaurants (some of them owned by clients or friends) went out of business, while other suffered for a couple of years, until the city’s economic tide turned a couple of years later.

3

You’re concerned about sustainability.

With an infrastructure designed and maintained to support up to a limited number of people, Malta needs to worry about the sustainability of its tourism industry. One option is to direct additional funds to improvements of roads and utilities. Another, less expensive, one is to become less dependent upon the massive annual influx in the first place.

4

You enjoy evolving and experimenting.

Increasingly, tourist-focused retail and hospitality establishments are becoming dependent upon online reviews. Good ones can be a mixed blessing, generating interest on one hand, while, on another, locking proprietors into menu items, product assortments, that may be blocking the evolution of the brand or experimentation with the business.

5

You enjoy forming and maintaining relationships.

Without question, there’s a certain charm to meeting someone from far away and putting a smile on his or her face. And yes, of course, there are those travellers who come back, year after year. But, as electronic consciousness alerts the global village to one undiscovered locale after another, that’s becoming an increasingly rare phenomenon. Meanwhile, entrepreneurs who learn to subsist on homegrown customers get to enjoy a far deeper pleasure, that of serving a neighbour who comes back, time and again. This pleasure must be earned, often through very hard work, often requiring advertising and other communications that counter engrained behaviours. But that’s what makes it so motivating: the challenge of it all combined with its eminent do-ability.

6

You want to avoid social media.

Personally, I consider it silly to avoid digital media, especially the social and mobile form. However, to each his own. And, for those whose preference is avoidance, it may be a smart idea to let go of any fantasies involving tourists. Often managing limited budgets and schedules, they’re decreasingly spontaneous, increasingly likely to micromanage every aspect of their stay. That means sites and services like Facebook and Tripadvisor need to be understood and, to one extent or another, used.

7

You want to encourage word of mouth.

Word of mouth can take forever, even in a very small country. If this is part of your game plan (and it should be) think about how realistic it will be for you to generate it among a crowd that lasts for just a few months, including individuals only there for a week.

8

If you have to deal with tourists, you might as well deal with the very best ones.

Parisians, the stereotype goes, are quite rude to tourists. Muscovites, less rude, more enigmatic and dour. New Yorkers, actually quite friendly, but also assaultively energetic and (in certain cases) aggressively hospitable. Still, tourists are teeming into all three alpha cities in record numbers. Why? Of course: the art, the history, the culture, the glamour.

But also: the challenge of “making it”, of being accepted by locals, of uncoding cultural beats and rhythms in short order.

That’s something Maltese businesses could and should try to encourage as well. As the world becomes ever more homogenised, the very best tourists – not just wealthy but also curious – are looking for the authentic and unspoiled, the naive and antique, more than ever.

Malta, influenced by every major Western power from the Phoenicians forward, needs to rise to the occasion by being less accommodating and a lot more itself.

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Acknowledging the significant results and achievements that have made the bank what it is today, Mr Silva Pinto said that Banif is a core domestic Maltese bank vying for a larger share of the local market. The bank was an impressive accomplishment in a very short time, clearly uplifted by the public’s trust and confidence. In the meantime, as an important player in the financial sector Banif Bank uses its muscle to contribute to the resilient financial system in Malta and maintain the country’s reputation as an important hub for financial services.

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Money / Issue 25

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DESIGN

HAVE A SEAT Pasquale Natuzzi, Chairman and Chief Executive Officer of the Natuzzi Group, is one of the most iconic and renowned Italian entrepreneurs in the world. He started his career 55 years ago, reinventing the furniture business and taking his company from a tiny workshop to a global brand. The company is strongly focused on design and product innovation.

Recently, Natuzzi introduced a new bed collection and Re-vive, the first performance recliner that is changing the way people enjoy beauty and comfort at home. Money sits down with Pasquale Natuzzi.

How important was your father’s background as a cabinet-maker in influencing your decision to start producing armchairs and sofas? When I

was little more than a boy, I used to spend my afternoons between my father’s craft shop and my mother’s milk store. My father passed on to me his passion for the handcraft, the pleasure of creating and building beautiful things.

After a few years I started working as a young apprentice in the workshop of a friend of mine, who was an upholsterer. Seeing this craftsman at work, his dexterity, his gestures, made me fall in love with what would become the job of my life.

Do you remember your first design? It was an armchair that I called “Ballerina” because I was inspired by the grace and harmony typical of a female dancer. I was looking for a particular style that would set my products apart and make them instantly recognisable. Sheer emotion: that was what I felt, back then. I made the frame, cut the covering and then sewed it.

Back in the 1980s, you revolutionised the world of sofas by making leather sofas available to everyone – a democratisation process. How did this decision influence the future of Natuzzi? My intuition to make a 1980s status symbol such as the leather sofa so widely accessible is a Natuzzi innovation that has been acknowledged and rewarded by the market. Our casual modern leather sofa was an

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Money / Issue 25

immediate success with American consumers.

The company was listed on Wall Street on 1993 – this was an extremely important event for the Natuzzi Group as a whole. After years of hard work, commitment and tenacity, this important step provided the definitive confirmation of our worldwide success.

Every year, you produce around 6,000 sketches for new Natuzzi products, but only 120 reach the final verification stages. On what basis are these selected?

Building a brand is not easy. You must have a soul and keep consistent with the brand’s identity and personality in every single detail.

In our Style Centre located in Apulia, Italy, we develop new concepts and home environments.

We stretch our effort from product design to retail formats, communication, packaging, and aftersales service. The Style Centre is our lab where we develop projects, not just products.

You still personally oversee Natuzzi’s direction in design, manufacture and strategy. How important is a strong work ethic and personal vision to make a business successful? The success and growth

of our company are connected most of all to our strong sense of ethics. Integrity and respect for our customers and employees are an important part of our history and, at the same time, the foundation on which we build our future.

Natuzzi is the largest Italian furniture company.

We control our raw materials and process them in our plants. Our products are made in Italy by expert artisans at Natuzzi Group’s plants. This is a key point of distinction and truly a guarantee of quality, respect for the environment and human rights. We invest a lot of work and continuous search, but it is the only way we know how to deliver value to our clients.

“You must have a soul and keep consistent with the brand’s identity and personality in every single detail.” distribution network, and consistent with our brand values.

You claim that your new armchair, Re-vive, is unique in design and technology. What fuels this claim? Re-

vive is the world’s first performance recliner.

We have collaborated with the award winning, innovative New Zealand furniture design company, Formway, to deliver the next step in ergonomic technology for the home. The Revive recliner combines New Zealand innovation with Italian style to bring a completely new offering to the home furniture market.

What makes Re-vive so different in terms of function and comfort from other recliners that have hitherto claimed prime position in the market?

Re-vive moves with the body as it makes the countless adjustments needed to truly relax or to move from one activity to another. It does this without the levers and buttons inherent in the design of other recliners, while providing a superior level of comfort.

What inspired the design of Re-vive?

Recliner technology hadn’t changed in the last 50 years, so we looked to nature for examples of strength, flexibility and multi-dimensional movement, like the tail of a lobster, the branch of a tree and the human spine. With that in mind, we designed the recliner to be able to distribute the weight of the body so it can balance in a neutral position.

What are the Re-vive’s environmental credentials? The Re-vive recliner is not only

sourced from recycled materials where possible, but has been designed to be highly recyclable at the end of its life. Re-vive is produced with clean and renewable energy, thanks to photovoltaic panels installed on the rooftops of our plants in Italy.

In such a fast-paced world, the publicity for Re-vive makes a bold statement: Love doing nothing. How important is it for everyone to stop and just do nothing?

During the day the body develops tension and taking time to reflect, relax and recharge is essential. Our goal was to develop a recliner that promotes health and well-being through total support and unparalleled comfort. Re-vive cocoons you in a healthy, supported posture to refresh the body and allow the soul to revitalise.

How do you combine traditional craftsmanship with modern research and manufacture? They are the essence of

our work. Without research, for instance, we couldn’t have realized all the innovations, not only in materials but also in style, design and leather colours, that made us the world leader in the leather furniture sector. Beside all these ideas, a lot of research and innovation led us to reinvent and reorganise the whole chain of sofa production. We continue to innovate every company’s strategic area, from the production to the product, from the logistics to the marketing management and sales.

Today, more than ever, research is vital and we are doing it in our plants, products, points of sale and communication activities, in order to be innovative in the offer, effective in the Money / Issue 25

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country profile

SAND AND DELIVER If and when Libya gets its act together, it can become a tourist hotspot, says Money.

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hey say history repeats itself. And it does.

The US led invasion of Iraq in 2003 was sold to us as the solution to disarm Iraq of weapons of mass destruction, end Saddam Hussein’s support for terrorism, and free the Iraqi people. Yet Operation Iraqi Freedom left the country it promised to save in tatters.

The same goes for Libya. True, the UNauthorised air campaign in 2011 achieved its aims of protecting civilians and helping the North African nation get rid of its dictator Muammar Gaddafi. Yet a brief look at the news headlines is enough to confirm that a stable future for the North African country is remote: a free and peaceful Libya is still a mirage in the desert of the future.

It is difficult to keep ourselves updated on our African neighbour and anything published here is sure to expire in hours. However, one thing is certain: nowadays, Libya is overrun by militias and Libyans live under the threat of a human rights crisis and even, civil war.

The Gaddafi-era laws that the Libyans fought hard and died to abolish have been replaced by similar ones. To mark the third anniversary of the 2011 Libyan uprising, Amnesty International reported how laws that were drafted under Colonel Gaddafi’s regime to curb freedom of expression have been redrafted but still outlaw all criticism of the February 17 revolution or government officials. Satellite television stations deemed critical of the authorities have been banned while journalists have been assassinated.

The post-Gaddafi vacuum has been filled by

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armed militias, who frequently clash with each other, especially in the east. And under their rule, Libya has continued to disintegrate. In the latest developments, renegade general Khalifa Haftar has launched an offensive against what he terms as Islamist militants in Benghazi.

He also accuses the government that replaced Gaddafi as a haven for terrorists. And even though the Tripoli government says that Haftar has no authority to act, several key army units have joined him, together with political parties and tribal forces. But how far will Haftar go?

And what are his intentions? Whatever that is, we all know that, as things stand, victories in Libya tend to be short-lived.

These violent upheavals are played against a beautiful backdrop. Because while news cameras show a ravaged country, the truth is that, outside the camera zoom, Libya is beautiful. The Mediterranean coast is spectacular, with more than 1,000 miles of pristine beaches. With stability and the proper infrastructure, a beach holiday here would be unparalleled anywhere in the Mediterranean basin.

The sands of the Sahara desert are similarly imposing, surrounded by oasis towns which were once trading hubs for cloth, paper and precious stones. But it’s not just sand. The Jebel Akhdar, a mountainous plateau in the northeast of Benghazi, is one of the few forested areas of Libya – the generous annual rainfall makes it a green splendour of fruit, cereals and trees.

Even Tripoli itself and its old medina have something of the Arabian Nights about them.

Shaded courtyards, stone-vaulted passages, tea

shops, little markets and the smell of spices and curried lamb add mysterious layers to the city.

Libya’s Roman past is translated into the magnificent ruins of Leptis Magna and Sabratha which, although neglected, hold massive

LIBYA IN NUMBERS POPULATION

6,155,000 15,000,000 A report by a UN panel of experts says that Libya is awash with around 15 million rifles and other weapons.

3.9%

Total expenditure on health: 3.9 per cent of GDP.

600,000 It is estimated that currently, there are up to 600,000 people waiting in Libya for an opportunity to cross into Europe.

$644.09 potential. So does Jebel Nafusa in the western mountains. Leptis Magna and Sabratha, where temples and theatres rise out of the sand, are set against the blue backdrop of the Mediterranean, which makes them unique in the world.

Yet all these attractions don’t make Libya a holiday destination worth considering. And while Libya may have participated in last year’s World Travel Market in London, no amount of colourful brochures will convince even the more adventurous travellers to put Libya on their itinerary. Because beyond location, dreamy landscapes and history, what a tourism industry needs is a strategy. And peace.

The average monthly disposable salary after tax is $644.09.

85%

LET THE GOOD TIMES ROLL During the day, Amazonia Beach Club is a tranquil oasis: soft background music enhances the chilled out ambience and the restaurant serves the perfect summer menu. And for a drink in the sun, relax at the chill-out bar with large white sofas, stools, tables and friendly staff. When you’ve had enough relaxation, get your adrenaline pumping with Amazonia’s adventure options, including waterskiing, wakeboarding and jet-ski rentals.

After 5pm on certain days, Amazonia is transformed into an outdoor VIP pool and beach party. Due to 70 per cent of Amazonia’s regulars being women, Amazonia created a party every Sunday called What Women Want. Amazonia has also created personalised merchandise given out for free at each party.

Wednesday nights at Amazonia Beach Club feature a Sunset BBQ, while Fridays and Saturdays are open to the public for promotional night events. At Amazonia, VIP treatment is always on the menu.

The club has invested in quality furniture such as the grand four-pillared double beds, which can be booked for €30 during the day and €300 on Sundays after 5pm for WWW parties, including four complimentary bottles of alcohol.

For more information visit www.facebook. com/wwweventsmalta. For VIP bookings contact 9950 6050.

85 per cent of Libyans live on the Mediterranean coast.

Libya is the fourth largest country in Africa but only 10 per cent of its land is cultivable.

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ROOMS DESIGN

WITH A PHEW Money spends a night at Valletta Suites and Hostel Jones to see what inspired their design.

Valletta Suites Stephen Azzopardi and Brian Grech Photos by Brian Grech.

You were one of the first to believe in the regeneration of Valletta by setting up Valletta Suites. What fuelled your belief?

We started Valletta Suites in 2006, when very few people believed in Valletta. It was mostly Steve’s idea. At the time there were very few places to stay and none offered the experience we were after. This all started when friends asked for recommendations for a place to stay in Valletta.

We always thought that the island lacked a capital city as reference point. Furthermore mass tourism had been exploited in areas of Malta with no reference to our cultural heritage.

The fact that the city had been abandoned for a long time meant that the architecture had remained intact and offered a source of inspiration and opportunity to regenerate something which has outstanding value.

What identity did you aim to create for Valletta Suites? Valletta Suites aims to create unique spaces that redefine the idea of luxury: a ‘no-hotel’ experience, where luxury is not about the bling offered by most hotels, but an authentic personal experience.

We wanted to create something exclusive for individuals who appreciate our rich history.

Valletta Suites is a small collection of unique places for a very specific clientele. I find it difficult to describe the decor and experience 34

Money / Issue 25

of the suites – in a way they are mostly things we like including, like antiques we collected over time, bespoke furniture, and good quality furnishings. Different spaces we would live in.

Although I feel that today it is a brand in its own right, to me Valletta Suites is more of an experience.

A unique identity, yet every suite has its own character – how did you manage to achieve this? Every suite is different in

its own architecture, therefore we couldn’t (and didn’t want to) replicate the same over and over again. Also the suites are located in different areas, so we felt that the surrounding influences had to be reflected in the identity of each particular building. This was achieved by respecting the buildings as much as possible.

Some of the buildings were purchased in an unconverted state while others had been

partially converted – therefore we approached every space differently.

Each suite is unique, yet there is a running style throughout – this is probably our own personal style, as you would recognise the style of a particular designer.

The overall feel and identity is very strong as this was created solely by us. Steve loves art and history, and I’m more interested in graphic design and photography. There were no outside interferences (as when working with clients with too many different ideas and opinions),

“We wanted to create something exclusive for individuals who appreciate our rich history.”

and therefore the end result is very strong in its beliefs and image. But I think the success is overall due to the passion in our work.

What inspired your designs? Knowledge of historical references, the spaces themselves, a dose of imagination and a bit of irony.

What experience can your guests expect?

It’s a bit like living in your friend’s house – one who loves art, travel and history.

Most of the press focus on the hidden quality of Valletta Suites – how does this feeling of discovery enhance the overall experience? Valletta Suites is small and aims to remain so. This is part of the hidden quality of a special type of accommodation. I feel that the experience you get at the suites creates this sense of discovery.

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Casa Ellul Matthew and Andrew Ellul

Casa Ellul, the most recent addition to Valletta’s growing boutique accommodation, has opened its doors for guests this month. Designed by Chris Briffa Architects, its eight suites are a special mix of old and new: capturing the essence of Valletta in the restored C19th period house, with stunning views of the Carmelite dome from its rooftop suites.

Trabuxu Boutique Living Kris Fenech Soler

The Trabuxu concept is of a home away from home. It brings a fresh and hip style to Malta, in particular, to revive Valletta. This has been a project close to my heart for the past 14 years.

Trabuxu Boutique Living is a stylish and hip upmarket boutique hotel with a chic ambiance, providing bespoke accommodation with an innovative twist.

Conveniently located on the lower east side of Malta’s capital city and within walking distance of the city’s main cultural sites, shops and restaurants, you’ll experience the magic of our exciting city, while enjoying Malta’s reputation of friendly hospitality. This all combines to give you a feeling of belonging and familiarity.

You’ll be charmed by the fully restored 400-year-old building, reborn with meticulous restoration and state-of-the-art modernisation by internationally renowned Maltese designer Carlo Schembri. The rooms, all individually named, have their own personality. The modern and inviting concierge entrance is designed to instantly welcome you upon arrival and eliminate the stuffy formal check-in procedures common in most large hotels.

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Hostel Jones Trevor Diacono and Keith Montanaro

You describe Hostel Jones as “the coolest house, on the nicest street” in Sliema.

What qualities make Hostel Jones deserve this description? The air-condition

keeps us very cool in summer. Joking aside, Hostel Jones is bursting at the seams with art.

The building has history, style, a unique take on design as well as sustainable business practices.

Our ambience and atmosphere are unparalleled as are the guests and staff. As for our location, we are bang in the middle of one of Sliema’s main streets.

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How did your experience in hospitality start? Keith and I started working in

hospitality at a young age, starting from telephone operators and going on to work as receptionists, concierges, housekeeping supervisors, in food and beverage and in management. My last role in hospitality as an employee was as a manager of a spa hotel while Keith worked as a hotel operations manager.

We also had the opportunity to study hotel management together, as well as work in the same company within the tourism industry.

When did you purchase Hostel Jones and what did the refurbishment into a hostel entail? It took us the best part of three years to create Hostel Jones, along with blood, sweat and tears. All of our savings went into it and we spent many a night eating noodles and sardines.

The refurbishment also included infusing the building with art – this involved a lot of effort and creativity by some really passionate artists.

We made sure to showcase local talent while making our environmental message very clear.

Who was responsible for the design and what were the main aims? Both Keith and

I along with the artists worked on the design.

We wanted freedom of expression, and so we gave the artists a blank canvas on which to paint their creations.

We wanted to create something unique, beautiful, bohemian, slightly rough around the edges, recycled, hospitable, welcoming and friendly. We basically want our guests to be inspired and invigorated.

How does the design of the hostel marry form and function? A hostel is essentially

a community of young at heart travellers who

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share and live together during their Malta experience. The creative and art-infused design works exceptionally well with our targeted demographic.

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What role do hostels, suites and boutique hotels play in the local hospitality industry? Hotels cater for

tourists while hostels cater for travellers. We both offer beds but we differ in everything else. Hostels are a trend that continues to grow: travellers are less interested in spending hundreds of euros for fancy five-star accommodation that closes you off in a box and diminishing your immersion in the culture.

They would rather pay less, get free internet, meet more people and have fun in a clean, safe and funky environment that does not cost them their life savings.

01 - Intricately painted walls at Hostel Jones 02 - Hanging lamps at Hostel Jones 03 - The Hostel Jones Family 04 - Hostel Jones' chillout area

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“We wanted to create something unique, beautiful, bohemian, slightly rough around the edges, recycled, hospitable, welcoming and friendly.”

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THE SEAWAG 5.3" SMARTPHONE SEALED COVER Enjoy and capture your best moments while swimming, diving, boating, jet skiing, paddling, surďŹ ng, boarding and canoeing. The Seawag case is 100% water, sand and snow proof, allowing full access to all your handheld functions and touch screen whilst keeping your device safe and connected. Seawag cover is conveniently transparent enabling you to to take crystal clear photos and videos underwater. A user-friendly cover opens and closes with just two latches and includes a cord to secure your phone around your neck. Compatible with any mobile, the Seawag waterproof case guarantees a submersible depth to 80ft / 25m.

For more info visit www.seawag.com, fb.com/seawag2013 or call 9934 2784

DESIGN

FORT DESIGN Malta Design Week 2014 confirmed Malta’s growth as a hub for Mediterranean creativity.

M

alta Design Week is a biennial event presented by 808, an NGO which is also responsible for a year-round programme of design-related initiatives. 808 is a voluntary group of professionals, hailing from diverse design, marketing and arts backgrounds, with a shared commitment to establish MDW at the forefront of Maltese creativity and innovation. Its mission is to facilitate, promote and celebrate the development of Malta’s design industry on a cultural and commercial platform by connecting designers and makers with industry and creating a culture of sharing expertise.

Held in Fort St Elmo, Malta Design Week 2014 declared itself a micronation: an expression and desire to separate and exist independently; to auto-annex oneself from a precedent in the pursuit of functioning autonomously through a set of standards inherent to the very space itself.

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[Viridis Obscura] Designing a project is easy. Funding it on the other hand is not so easy at all.

When Matthew James Mercieca Design Architects were entrusted with the task of designing a temporary public pavilion at Malta Design Week 2014, it was evident that although they had a clear idea of what they wanted to build, obtaining the funds to make it happen was going to be a little more difficult.

In Malta, an island brimming with art and culture, artistic sponsorship is often the realm of large corporations, banks or multinational companies. Funding is limited and availability for small, last minute initiatives is hard to come by. Faced with the issue of wanting to give the public a space to enjoy during Malta Design Week, but not having a big corporate backer and a number of major expenses, MJMDA decided to go for a different type of sponsorship: a public one.

These principles are also intrinsic to good design. Outstanding design abandons the conventions of its predecessors and establishes a new set of rules, existing in its own scale of measure. In Fort St Elmo, Malta Design Week 2014 created a space where design can survive and thrive. Visitors stepped into a self-governing space where innovation and creation are the constitutional basis upon which the country functions.

And so [Viridis Obscura] – A Crowd Funded Project, was born. A stark black mass in the middle of the parade ground of Fort St Elmo, [Viridis Obscura] led visitors into a dark space.

In the belly of the earth the structure’s steel framework was visible, and so were a few leaves from above. This took visitors back to the Fort’s pre-restoration days. Rays of light penetrated the darkness, and if visitors walked through the winding pathway early in the morning after the plants had been watered, the water dripping down was real too. A large opening and a ramp presented themselves, the greenery was visible and visitors were welcomed by the surprise oasis: the fort enjoying a new lease of life.

Visitors were then presented with two options: either enjoy the space or walk up to the upper level where visitors were given the opportunity to look around the impressive parade ground and buildings, looming over the vast courtyard, the entrance walkway, the newly restored facade of the church, the other installations, or simply sit down and enjoy the space.

Photos 1& 2 - Sean Mallia, Photo 3 - Matthew Mercieca

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letting

Focused, quick and efficient Quicklets is changing the letting market by going that extra mile with a smile.

Q

uicklets was born in the comfort of Steve Mercieca’s living room back in August 2013.

“Opening a real estate agency is no simple task, so I needed to choose the right partners to make this vision a reality,” says Steve, the company director and one of the three shareholders.

Sami and Mike soon joined the team. As head of marketing for an online casino, Sami is in charge of the Quicklets website, online marketing and Google ranking, while Mike is responsible for the finances and legal department.

With a different approach, attractive and functional website and amazing ideas, Quicklets quickly took the market by storm.

“At the end of last September, we closed a substantial contract at Tigne Point. This gave me the option to leave my day job in an iGaming company and focus full time on Quicklets. By November we had the financial capital to invest in our first office at 180, Triq il-Qasam Swieqi. We could also afford a decorating budget of €500, but had virtually no advertising budget” Being a new and small company, it wasn’t easy for Quicklets to convince agents to join them.

“However, we were determined to give it our all. We also realised that the less budget you have the more creative you turn out to be. And that’s how the Quicklets style was born.”

Quicklets promotes efficient customer service above all.

“That is our most important value,” says Steve. “A company is not portrayed by the clothes they wear but by the efficiency of the service they have to offer. This goes hand in hand with customer service. To be able to offer excellent customer service you have to be comfortable and above all you have to be yourself. Becoming a part of our team means you will become a part of our family. We don’t want you to wear a mask at the office: you have to join in the fun and be yourself, as of course you will be spending a lot of time with the Quicklets Team."

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The Quicklets office, state-of-theart website and efficient customer service soon started to attract a lot of attention.

“By building more relationships with people and companies, our brand started to spread. We decided to set some goals, shortas well as long-term. We made business plans and strategies to see how we could expand our

business and keep funding our growth without turning to the banks. Long hours, late nights, contracts on Sundays and extra miles were all a part of our journey.

A few bad weeks did come our way and most probably will again but we learnt how to persevere in this extremely competitive market. We also got a little bit of support from family and friends but of course

level, from a drive around the island showing the local places of interests to going rock climbing with them.”

Today, Quicklets has nine desks, five computers, and over 1,000 properties on their books. The company is growing at a consistent rate and offers amazing staff incentives and a great vibe at the office.

“At Quicklets we work as a team.

I coach the agents and guide them to avoid the “no property available” bollocks. I created the whiteboard method and really focus on the importance of listings,” Steve says.

“We also have a network of 188 virtual agents, increasing by about 15 per month. On average, we pay out about 6 virtual agents per month. They are one of our best sources of lead generation.

Basically what we have done is introduce affiliate marketing into the real estate industry, adding benefits to both client and owner.

“We work differently to other agencies. We focus on the property.

We don’t take a client to four properties: we take four clients to one property. We are focused, quick and efficient. We also speak to our clients. Many don’t realise that they can improve their standard of living by renting out their home and moving into a nicer one. Some people might think moving is a hassle, but it isn’t that bad when you do it every five years. We value properties and offer our clients options that focus on delivering a better quality home while keeping the same lifestyle.

every company has its rainy days and with no funding to fall back on, we had our fair share of stressful times.”

With a sound business strategy, Quicklets expanded its office to an 85 square metre space on top of Jessie’s Bar in Triq ta’ l-Ibragg, Swieqi.

“We also took the risk of employing a secretary for 30 hours a week to help with the listings and take some of the administrative load. This turned out to be our best move yet. As the weeks flew by some desks were donated, Sami bought a couple of towers at the cheapest price possible and Steve’s car was used as a removal van to collect some second hand desks and chairs.

Expenses were kept as minimal as possible and the quality of service as high

as possible.

“We also started going that extra mile with a smile and giving our good clients welcome packs. This consists of a wooden wine crate filled with Maltese products such as cheeselets, milk, bread and other Maltese products when clients moved into their new homes. We built relationships with our clients on a different

“At Quicklets, we also offer property management at a very attractive rate,” Steve says.

“We look at it like travel insurance.

We offer it not to make a profit but to give our property owners the peace of mind they are looking for.

Our rate is €480 per property with an annual cleaning service included in the price.”

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Enjoy a perfect Italian coffee from the comfort of your workplace.

Trade Enquiries: covim@interbrandsltd.com or 7988 7676

fitness

THE GAME IS ON Physiotherapist Milos Stanisavljevic explains what helps you avoid sports injuries.

How can one avoid sports injuries? Being prepared is the best advice one can give. Be physically as well as mentally prepared by being fit for the activity you are about to undertake.

Other issues such as proper nutrition, proper equipment and appropriate facilities all have a significant role in injury prevention too.

What are the main factors that lead to sports injuries? It is usually a combination of

improper training that can be compounded by any underlying musculoskeletal issues. That is why it is imperative that anybody who wants to embark on a regular physical activity programme, whatever the level or intensity, should be seen by somebody who understands the physical strains that the body might be subjected to. If your house springs a leak due to defective plumbing you call a plumber and not an electrician.

The same applies to injury prevention and management in sports: you go to the people who deal with this on a daily basis.

Are there particular injuries associated with different sports? Definitely. You tend to

injure the part of the body you put under most strain or highest impact. Hence, in a volleyball player you will find shoulder and knee overuse injuries and then acute ankle and finger sprains.

The same holds for all sports. What you use most gets injured most.

Can diets or vitamins help in preventing injuries? A balanced diet is vital for injury

prevention. By diet we also mean fluid intake which can be a real issue in Malta. This is especially during the hot summer months when some sports take place and very often pre-season training starts in others.

How important is a good warm up before practicing any sports? A warm up

is just an exercise that prepares your body for physical activity and it should reflect the sport activity you are about to undertake. Gymnasts will undergo a general whole body warm up and stretching regimen, while runners, for instance, will concentrate more on their legs.

An integral component of a warm up is also the mental preparation that goes hand in hand with the physical one. You must prepare the mind for sports and not only the body.

“An integral component of a warm up is also the mental preparation that goes hand in hand with the physical one.�

What exercise helps strengthen the muscles and prevent injuries? Good

question. However there is no easy answer.

You must aim to strengthen the muscles and joints you use the most, but you cannot neglect any component as this might result in muscle imbalances with the resultant injury.

Also strengthening the core and incorporating flexibility and balance exercises are also important not only to improve performance but also to decrease the chance of an injury.

Is there also an element of bad luck in getting injured? You find bad luck in

every aspect of life, so why not in injuries?

However, you can decrease your bad luck by being physically and mentally prepared for the exercise you are about to undertake. Recovery is also important as it gives the body time to regenerate and strengthen itself.

MAKE A DIFFERENCE Drinking dirty water kills more children than war, malaria, HIV/AIDS and traffic accidents combined. Contribute Ltd. is launching Contribute Water, a charity water dedicated to help people get access to clean water and proper sanitation in Africa. For every bottle being purchased, part of the revenue will go to charity.

Contribute is collaborating with the charity organisation Pump Aid whose main focus is to build water pumps in Africa. After their launch in 1998 they have completed over 8,000 water and sanitation projects enabling more than 1.1 million people to get access to clean water.

Contribute Ltd. is also collaborating with Tree-Nation and planting trees to make up for the carbon footprint involved in producing and transporting water.

Contribute Water is a still purified drinking water with beneficially low minerals. Contribute Ltd. was founded in Malta by Janika Portelli, Nils Wijkmark and Karl Wijkmark, three young persons that are all passionate about social entrepreneurship. For more information visit www.contributewater.com

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SUMMER DAZE Long lazy drives, peaceful days at the beach, downtime with your loved ones – make summer 2014 one to remember and look stylish doing so in these got-to-have them looks!

Photographer: Nicky Scicluna Stylist: Kira Drury Hair & Make-Up: Stephanie Hodgkins Models: Stephanie and Adrian Celio jeans at Square Deal, €49.99 // Esprit blue linen shirt, €49.99 Tom Tailor shoes at Square Deal, € 25.95 // Carpisa bag, € 19.90 44

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Hugo Boss white shirt at District, â‚Ź124.00

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Adrian - Celio jeans at Square Deal, €49.99 // Esprit blue linen shirt, €49.99 // Tom Tailor shoes at Square Deal, € 25.95 // Carpisa bag, € 19.90 Steph - Esprit stripe dress, €49.99 // Armani Jeans hat, €85.00 46

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Adrian - Armani Jeans shirt, €110 // Shades, model's own Steph - Suiteblanco cami, €13.99 // Suiteblanco shorts, €29.99 // Suiteblanco necklace, €7.95

Adrian - Hugo Boss white shirt at District, €124.00 // River Island stripe shorts, €35.00 // Ecco shoes @ King Shoe Shop, €129.90 Steph - River Island crop top, €18.00 // River Island trousers, €40.00 // Ecco sandals @ King Shoe Shop, €99.90 River Island shades, €13.00 // Tally Weijl necklace, €6.96

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Adrian - Tommy Hilfiger yellow shirt, €79.90 // River Island white shorts, €31.00 Steph - Calvin Klein black bathing suit at District, €46.25 // Hugo Boss red shirt dress at District, €164 // Mexx hat €25.95

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Adrian Esprit white vest, €15.99 Celio orange shirt at Square Deal, €39.99 Tommy Hilfiger print bathing shorts, €59.90 Steph Emporio Armani bikini, €105.00 Esprit white shorts, €59.99

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Adrian Mexx denim shirt, €55.00 Mexx floral t-shirt, €32.95 Tom Tailor shorts at Square Deal, €49.95 Ecco shoes @ King Shoe Shop, €129.90 Steph Tom Tailor maxi dress at Square Deal, €39.95 Carpisa white bag, € 25.90 Mexx coral scarf, € 19.95 Ecco sandals @ King Shoe Shop, €99.90 Money / Issue 25

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gifts

THE PLEASURES OF TIME Baselworld 2014 has confirmed why it’s the world’s largest and most important watch show.

Money tries on the finest watches from the new collections.

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Rolex, Patek Philippe, Hublot, Chopard and Raymond Weil are exclusively represented by Edwards Lowell Co. Ltd. and are available in Zachary Street, Valletta and Spinola Bay St Julian's.

For more information please call +00356 21384503 or e-mail info@elcol.com

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Money / Issue 25

Photo 1 - Baselworld Outside View Photo 2 - Baselworld Hall, Basel Photos courtesy of Baselworld

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1) 1 The sculptural play of curves and straight lines on the Chopard Imperiale watch is expressed in a sophisticated blend of materials. The 18-carat rose gold of the case, the delicate mother-of-pearl on the silver-toned dial and the diamonds set on the bezel make this a truly majestic watch.

As a final touch, the lugs and crown are set with amethysts – a nod to the imperial purple worn by Byzantine emperors.

2) 2 The Patek Philippe Annual Calendar Chronograph Complications in stainless steel is a rare fusion at Patek Philippe.

It is one of the manufacturer’s rare classically elegant wristwatches outside the casually exclusive Nautilus and Aquanaut collections that combine a complicated movement with a stainless steel case. This debut is bound to capture the attention of collectors and brand aficionados.

3) 3 Rolex presents three new versions of the Oyster Perpetual Sky-Dweller, its most recent and most innovative model boasting 14 patents, which was launched in 2012. The new versions in 18ct yellow, white and everose gold in a 42mm case expand the existing collection by introducing new exclusive dials combined with new combinations of bracelets and leather straps.

4) 4 Rolex presents a world first with its new version of the Oyster Perpetual GMT-Master II equipped with a two-colour Cerachrom bezel insert in red and blue, combining the best in high technology with the iconic aesthetics of the original 1955 model. This colour combination, long considered impossible to create in ceramic, is a dream come true for enthusiasts of this emblematic model.

5) 5 Rolex presents the new Cellini collection, a contemporary celebration of classicism and the eternal elegance of traditional timepieces.

This new collection combines the best of Rolex know-how and its high standards of perfection with an approach that heightens watch-making heritage in its most timeless form.

6) 6 Rolex is introducing updated versions of its quintessential Oyster Perpetual model in 31 and 36mm featuring exclusive new dials. The Oyster Perpetual – the purest expression of the Oyster concept and having no other function than a clear, accurate time display – comprises the renowned Rolex waterproof Oyster case and the self-winding Rolex Perpetual movement famed for its precision and reliability.

The Oyster Perpetual is an officially certified chronometer endowed with all the fundamental attributes of the Oyster collection and affords full access to the Rolex legend. This model stands out with its eye-catching new dials in elegant and sporty colours.

7) 7 This Chopard Happy Sport watch sparkles with femininity. Stunningly crafted from 18-carat rose gold with a diamond-set bezel, its curved lines and daring unconventionality are perfectly Chopard. The silver-toned dial richly accentuates the Roman numerals and finely crafted details, while Chopard’s signature moving diamonds playfully dance in a joyful display of light.

8) 8 The Patek Philippe Nautilus Travel Time Chronograph is a new complication and its cult status design makes this the perfect wristwatch for our era.

Patek Philippe is expanding its collection of complicated Nautilus models, endowing the chronograph with the Travel Time function that indicates the time in two different time zones at a single glance. The new watch combines two highly popular complications and features additional functions for enhanced everyday convenience.

9) 9 A real success since its launch, the Raymond Weil Freelancer collection boldly explores design and metals. A subtle reminder of the spirit of independence at the origin of Raymond Weil’s creation, Freelancer displays open lines with a sleek geometry. Titanium, skillfully blending character and refinement, provides a daring alternative in this collection.

The new Freelancer chronograph shows a metallic face, punctuated with shades of grey: this mezzo piano of power and elegance beats to the rhythm of a mechanical automatic winding movement, equipped with the chronograph function. Orange-coloured notes highlight the chronograph hand in the centre, as well as those of the hour and minute counters.

The slate-grey dial of the titanium Freelancer offers the day date window at 3 o’clock, and a circular tachymeter scale. The ensemble is housed in an imposing, round, 45mm-diametre titanium case, fitted with a screw-down, transparent back, providing risk-free immersion to 10 ATM 10) 10 Hublot presents the classic Fusion Pelé, a self-winding skeleton chronograph movement. The watch is a Classic Fusion Aero Chronograph limited to just 500 pieces, with 45 mm polished/satin-finished ceramic case, and an automatic mechanical Aero Hublot chronograph movement. The sapphire dial has faceted and polished indices and transfers in silver powder and yellow. Pelé’s famous signature is found on the watch’s case back.

Money / Issue 25

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travel

Turkish Delight There’s one sure thing that gets tourists spending: a shopping festival, says Mona Farrugia.

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he Istanbul Shopping Festival is one of the youngest shopping festivals in the world.

This year, 2014, it will be a toddler of three.

And just like a toddler, it is making a fuss and declaring itself. Now that’s rather grandiose for such a young thing. Yet is it?

Shopping festivals have become one of the best ways in which Asia and the Middle East promote their cities. They pander to our most basic consumerist instincts while packaging themselves, ribbon and all, as fun, fun, fun.

True, they remain a consumerist set-up. And yet, there is a kind of freshness and honesty about shopping festivals.

with loads of little shops dotted around, from the chic Galata area to the craziness of the Grand Bazaar with its fake Louis Vuitton numbers, the fake Tod’s that are almost as expensive as the real thing, the spices, the highquality cashmere shops dotted in the pedestrian zones outside the Grand Bazaar, the Desa leather shops in the centre (Desa are strongly rumoured to make bags and shoes for some enormous designer names so you get quality with value): in a world of the same bland high-street shopping and repetition, Istanbul shines with originality and verve.

What should you expect? Well, discounts for one. In a city where bargaining is the norm, the festival will take the exhaustion out of the Grand Bazaar’s wheeling and dealing and simply present the discount on the proverbial plate. Also expect longer opening hours, which is great as the Istanbullers, like us, do like their naps.

Yet the absolutely most amazing thing has to be Turkish Airlines’ tie-in with the festival.

First of all, it is now flying almost daily from Malta (and eyeing a daily flight as reliability in booking is the traveller’s holy grail). Second, it is now the only airline flying to Ataturk International Airport – for some reason Air Malta started flying to a secondary airport as from last April and now a flight requires an hour-long taxi trek into the city. If you have been to Istanbul, or read about it here before, you will know that the traffic in Istanbul can be horrendous. You do not want an airport arrival and departure that uses up half your trip stuck behind thousands of cars.

The best thing of all, though, is the luggage allocation: 30kg. Which is good since in Istanbul, you really shop. It is fun shopping,

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What will distinguish any city embarking on the shopping festival, attention-seeking blitz, though, is not the actual shopping itself, but the peripheral supply of services, and Istanbul does this in a beautiful way. It has some of the best restaurants I have ever been to – from the outstanding Mikla and its 360 degree views high in the Pera area to the ridiculously cheap kebab house to the right of the Grand Bazaar where I can sit on plastic stools and dip grilled liver kebabs into little mounds of spices – you will be impressed and enthralled at every turn.

“They pander to our most basic consumerist instincts while packaging themselves, ribbon and all, as fun, fun, fun.”

Istanbul’s cafe life is probably unmatched anywhere in the world. From the tiny coffee shops serving coffee, and only coffee, to the cafeas-a-way-of-life unshabby chicness of the House Cafés serving expensive but perfect cappuccinos and flutes of champagne, I quite literally spend most of my days sitting and sipping when in this

ALSO OPEN FOR BUSINESS PARIS I bet you didn’t know that Paris had a shopping festival but it does. At the end of June and the beginning of February – what are, effectively, known in the rest of the world as the winter and summer sales – Parisian shops go on sale. As anybody who is a frequent visitor knows, shopping in Paris is never cheap but always amazing quality (that is, if you can stop yourself from buying half the plastic-smell saturated hallowed spaces of H&M). Shoes, even from unbranded shops, are stylish and last.

What the Parisians do best is streets lined with little shops, usually owner-run, of very particular items. In just the Saint-Germaindes-Prés area you will find an umbrella shop, a sock and tights shop, a scarf shop, a teapot shop and a calligraphy shop.

Parisian hotels are ridiculously high priced (an average of €300 a night for a quality four-star) and have notoriously small rooms.

Their restaurants are still some of the best in the world: my favourite is Les Papilles, where a set menu costs around €40 and the wine list is unparalleled.

HONG KONG

Closer to your hotel – try the Peninsula’s corner suites, which are just fabulous and come with a butler and your own shoe lift – you will find that Chanel, for instance, is much cheaper than in Europe. Hong Kong is a tax-free heaven and the process for claiming tax back at the amazing airport has been simplified – don’t forget to leave the items available for final checks.

In the evening, quality restaurants abound.

And for once, you will not have to go very far: this is probably the only city in the world, apart from Singapore, where eating in-house is a great experience and even Michelin-star outlets may be lurking underneath your room. magnificent city.

Its hotels are wonderful and the choice staggering. If you just go on Trivago.co.uk you will find not only over 2,000 hotels to choose from, most of excellent quality, but this consolidator site also finds you the best deals from around eight booking websites. The website design is unattractive, but efficient. If you want beauty, you can always google the hotels themselves.

It used to be that shopping was done in Paris or London but Istanbul is growing up. Its shopping festival can only help make it more of a destination than it already is.

Food and travel writer Mona Farrugia runs Angelica in Valletta. www.angelicamalta.com

SARTOrial dream There was something Romantic and Bohemian about the event that Sarto presented at the Prime Minister’s summer residence, a green carpet event that displayed the best of Italian fashion.

A fantastic sun and cobalt blue sky illuminated the precious garments which were worn by Mediterranean Adonis who best represented the mood of the menswear collections of Dolce & Gabbana and Armani. These are two different expressions of elegance that primarily aim to enhance great Italian couture.

The Dolce and Gabbana men’s collection speaks of ancient Greece. On one hand, the full-colour jackets and suits recall the classic 1940s in a perfect Gatsby style.

On the other, some of the suits became pages of a history book that narrate the beauty of the temples through the wonderful and refined all-over prints.

The patterns of the shirts and sweaters recall the geometrical precision of the Hellenic tunic, defined by structured volumes yet are ultra basic.

December to February, July to September.

Yes you read right: the Hong Kong shopping festival happens one fourth of the year. For anybody who has been to this small yet magnificent city, this will not come as a surprise at all as it seems to be made for spending your money.

Right out of the centre you will find a proliferation of really high quality factory outlets. In Europe this may have a nasty reputation but in Hong Kong, the Prada factory outlet is actually a Prada shop, stocked with shoes, bags, accessories and clothing that have been marked down to anywhere near 80 per cent. Ditto Gucci. So you get the lush experience, including the carrier bags, without having to melt your credit card.

The Armani menswear collection revealed a sporty simplicity that gives wide room to the typical deconstruction of the Milanese fashion house. The laser-cut jackets are reminiscent of 1990s fashion in the shape of an inverted triangle.

The pants have wide free-moving pleats emphasising their loose fit and have been coordinated with ultra slim sweaters knitted in a 3-D beehive effect.

Money / Issue 25

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golf

BEST PUTTS The green action continues at the Royal Malta Golf Club.

DEMAJO CHALLENGE CUP The Demajo Challenge Cup is played between a team chosen by the Captain and Lady Captain and a team chosen by a Demajo member.

On this occasion it was won by Mario Balzan Demajo. A splendid lunch was supplied by the Demajo Group.

HUAWEI LADIES GOLF CHAMPIONSHIP The ladies’ 2014 Huawei Championship Cup saw a superb first day performance from Laine Tutane. She posted a score of 75 taking her into day two of the championship with a massive 10-shot lead over Maureen Borg. In joint third place were Felicity Dix and 15 year-old Mia Allsopp.

Day two saw more of a close-run affair.

Nevertheless, Tutane’s second round of 87 was enough for a comfortable win ahead of Borg who posted consistently strong rounds of 85 on both days.

In the Huawei Moya Hann competition, Beverley Hall and Mandy Lucasse led the field on 93 after day one, two shots ahead of Jenny Scicluna and Annette Sowden. The leaders held on to their positions with Hall coming in first place with 189 and Lucasse runner-up with 193. Chris Briffa, Managing Director of tournament sponsor Intercomp presented the trophies and Huawei mobile phones to the winners and runners-up.

IIG BANK RMGC CLUB CHAMPIONSHIP The first day of the IIG Bank RMGC Club Championship saw Danny Holland in the lead with 68 followed by Andy Borg and JJ Micallef both with 70. Close behind were Nicholas Beck 56

Money / Issue 25

(73), John Micallef Stafrace (74) and Quint Van Beek (75). There were little changes on the second day. On the third day, an incident showed some extraordinary skill. Andy Borg teed off on the 10th hole and unfortunately landed in the ditch. Yet he found a one-foot gap between the tree in front and the arches of the bridge: the shot reached the green and he pared the hole.

Danny Holland was consistent throughout the third day and pared 17 holes and birdied one.

He was the final winner with a gross 201, Andy Borg was second with 207 and JJ Micallef third with 211.

In the Centenary Plate, Herbert Froehlich was the winner and John Hopper came in second place. The oldest regular player in the club, Tom Davies was third and received a special prize. Nigel Stibbs, the Chief Executive of IIG Bank presented the prizes to the winners.

01 - Huawei Ladies Championship Winner Laine Tutane

UBS TROPHY This trophy was held for the first time last year during the Golf Club’s 125 celebrations.

Such was its success that UBS offered to repeat the trophy this year. On the first day, Gernot Schmid, one of the UBS directors living in Malta but working in Switzerland, teed off with the Captain, John Fletcher and the Lady Captain, Michelle Allsopp. In the final analysis Bernard Bugeja was the men’s winner with 41 points closely followed by Johann Camilleri with 39. The ladies winner was Joanne Cassar and runner-up Stephanie Sciberras.

WEDGWOOD TROPHY The first day saw JJ Micallef, Johann Camilleri, Patrick Carey, Paul Gray, Ruud Critien and Nicholas Beck with stableford scores of between 39 and 36. The second day was sunny and calm, however those with a low handicap did not monopolise on this situation. Geoff Pickles won the day with a net medal score of 63, followed by Andy Holland with a net 65, Riccardo Fantinelli also with 65: he is a new member, is 10 years old and has a handicap of 15. Richard Crossley and Johann Camilleri came in with 65 and 66 respectively.

Johann Camilleri played off a handicap of 18.

He scored a net 66 on the second day and was the eventual Wedgwood Trophy winner over the combined days with an aggregate score of 28, the runner-up was Andy Holland with 31 points after count-back from Ruud Critien also with 31.

02 - IIG Bank RMGC Club Championship Winner Danny Holland

First day winner was JJ Micallef followed by Patrick Carey. Second day winner was Geoff Pickles and the runner-up was Riccardo Fantinelli.

TOMMY HILFIGER CHALLENGE Yvonne Van Beek came in on the first day with a stunning 45 stableford points, John Fletcher the RMGC Captain had 40 points, Emmanuel Agius 39 points and Andy Borg 38. This result placed Yvonne Van Beek in a commanding lead. However to hang on to such a lead requires a degree of consistency which is not always the feature of those with a high handicap. Yvonne Van Beek has a handicap of 23 whereas Andy Borg has plus one.

On Sunday, Andy Borg birdied eight holes and eagled the eighth giving him an outstanding score of 41 points. Yvonne Van Beek managed to amass 35 points and won with an aggregate of 80. Andy Borg was the overall runner-up only one point behind with an aggregate of 79.

John Fletcher was the runner-up man with 74 and Michelle Allsopp the runner-up lady with 67.

Jonathan Shaw, Managing Director, Tommy Hilfiger (Malta) distributed the prizes and entertained the participants to lunch.

46 minutes later. Executions are once again on hold. new york

THE BLUESMAN'S BLOG Justice is for those who can afford it, says The Bluesman.

O

n the first day of May, Oklahoma had two executions scheduled within two hours of each other. Most of death penalty supporters (the number nationwide stands at 59 per cent) come from the Mid-Western and Southern States. Now there is no doubt that the two inmates were/are nasty pieces of work but it is generally agreed, in the interests of humanity, that the Constitutional protection against cruel and unusual punishment is the benchmark adhered to by the justice system.

In this spirit, the electric chairs were mothballed and lethal injection was adopted as the method used to kill prisoners. Public conscience was salved mainly because the first two drugs administered pretty much sedated and then paralysed the victim, so it seemed to witnesses that a gentle sleep ushered the condemned over the Divide. This handy drug, pentobarbital, was being obtained from a Danish pharmaceutical group. Horrified, when a couple of years ago they were informed what their epilepsy drug was being used for, they stopped selling it. This caused quite a tizzy in US corrections circles and led to a rush to find alternatives.

Compounders and pharmacists (whose identities are kept secret) have come up with substitutes, and it is these untried, untested and experimental drugs that have lawyers filing appeals in an effort to obtain stays until more is known. Well, whatever Oklahoma used didn’t work and the authorities decided to halt the proceedings as the prisoner was in considerable pain. Not much else is known as the curtain was pulled across the witness window and the guy died of a massive heart attack (apparently)

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I don’t intend going into the pros and cons of the death penalty but I use the above account to highlight the extreme disparity in how justice is meted out in the US. Public defenders without enough experience end up over their heads in some parts of the country where authorities are not keen on paying for a good lawyer for the indigent. In one murder trial the defence counsel fell asleep. Even though the Pledge of Allegiance ends with the line, “with liberty and justice for all” it seems that adding “for those who can afford it” would be more accurate.

Other than Bernie Madoff, no bank executives were prosecuted for the mortgage fraud that precipitated the recession that still lingers. The comparatively minor savings and loan debacle of the 1980s generated over 1,000 convictions.

This time, nah. “Too big to fail,” they said, and even though corporations push politicians to help them get recognised as persons (so that ‘they’ can feel offended by gender or religious preferences the human ownership doesn’t agree with), this personhood status stops short of being liable to jail, and going after the decision makers well-rewarded for steering them seems to not have caught on.

So huge banks committed all kinds of malfeasance and paying negotiated fines is the only penalty. Regular guy jumps a subway turnstile, has his collar fingered, a ticket written and led back to the outside before his smirk fades. As it should be, of course, nevertheless all the more galling to read about the latest Wall Street shenanigan paid for out of bank depositors’ earnings.

I had occasion last month to put a microphone on former Mexican President Vicente Fox. The Presidente, one of the richest men in Mexico, was here to open a Latin American private equity conference along with former Treasury Secretary John W. Snow. A lot of wealth was represented – individuals and companies, shipping, oil and gas, real estate, cattle, and timber – proving that the growing wealth gap is not just a US phenomenon.

Thomas Piketty’s views and solutions may be a little too much for this country to embrace but we do have Senator Elizabeth Warren quite ready to address this ever-increasing disparity and many people hope that she will take a lunge at the presidency in 2016. The Right’s knee jerk reaction, of course, is to shout “Socialism!” but Warren has stated many times all she’s advocating is “a fair shake and a voice”. Though a number of cities have started to provide single rooms with barely a bed, toilet, shower and cooking facilities for the homeless, commentators feel that it’s a bad sign of acceptance for a situation seen as unsolvable. I bet it beats a cardboard box even if someone quipped, “It’s like Guantamo with your own key.”

Meanwhile, back at justice, the US has accused five Chinese army officers of cyber-theft and has filed charges against them. Before this news broke, I had heard from my little corner in the back of the room, ex-NSA head Gov Tom Ridge and a former FBI chief discuss this international industrial hacking. The Governor led into this from the explanation of how all the info the government gathers from our phones and computers just sits there until a target becomes evident. Well, the good news is that us regular guys and our computers have slid down the totem pole and it’s the big guys who are being cyberly pecked at. Not that stolen industrial secrets don’t have an adverse effect on all of us, but these victims are better able to protect themselves and if everybody’s doing it then at least let us be better at it.

Time and space running out, I have to include a “tip of the hat, wag of the finger” (to borrow a Stephen Colbert phrase) and remember just about the most productive House of Representatives ever, the 89th Congress during the LBJ era 50 years ago. Forty nine actually, but Johnson’s vision of the Great Society was heralded by the Civil Rights Act of 1964 and would probably have not been possible without the Democrats winning control of both houses.

Compare this to the miserable record of this current 113rd Congress. Rampant partisanship, bull-headed blocking and filibustering are the name of the game rather than consensus and serving the electorate. All the way with LBJ.

B AY S T R E E T, S T. J U L I A N S R E P U B L I C S T R E E T, VA L L E T TA

Money / Issue 25

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