MONEY Jun/Jul - ISSUE 13

THE TOURISM ISSUE Issue 13 June/July 2012

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Travel essentials The best cars for overland travel

Creating niche markets Exceeding visitor expectations

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Welcome

Contents Tourism is an industry which influences all the other pillars of our economy.

If you are in the entertainment industry, then you are catering for tourists. Transport and all the related infrastructure, including roads, influence the way tourists see and judge Malta. The same applies for financial services – the investors that this sector is attracting also visit the island, and therefore must have the kind of welcome and stay that they are looking for.

This why Malta’s tourism sector needs to be informed by a holistic vision.

In this issue of Money, we focus on tourism.

In an interview with Vanessa Macdonald, Minister for Tourism, Culture and the Environment Mario de Marco says how Malta is doing its utmost to survive within the context of Europe’s economic downturn. And not only is it managing to stay above water, but it’s also flourishing.

Our North American correspondent, Sean Patrick Sullivan, proposes a creative approach to attract more visitors – creating a nice market that caters for second generation Maltese.

Janet Uttley from VisitEngland explains how visitor attractions, such as museums, should create a unique experience while Victor Paul Borg puts forward his case on community-based tourism.

In this issue of Money, we also interview Mark Grima and Hugo Chetcuti from the Paceville Commercial Establishments Association, showcase the best travel essentials, and travel to wonderful Sicily.

Read on and enjoy.

9 A man for all tourism seasons

Minister for Tourism, Culture, and the Environment Mario de Marco is far from disappointed by the tourism figures. He is satisfied that Malta is doing all that it can to survive – and even flourish – in spite of the economic downturn. He speaks to Vanessa Macdonald.

15 For good reason Malta’s successful tourism industry has learned how to be different and how to showcase our unique assets, says Michael Refalo.

Editor Anthony P. Bernard Email: anthony@moneymag.me Consulting Editor Stanley Borg Email: stanley@moneymag.me Cover illustration HelloJon.com Design Porridge Email: hello@weareporridge.com Printing Progress Press Distribution Mailbox Direct Marketing Group

For information regarding promotion and advertising call Tel: 00 356 2134 2155, 2131 4719 Email: hello@moneymag.me

Malta needs tourists – or does it? Sean Patrick Sullivan proposes an entirely different approach to encouraging an influx of people (and, of course, euros).

36 Assuming responsibility

The financial services industry is contributing to tourism, but there’s still no clear agenda, says Reuben Buttigieg.

39 Market report

The MSE index was down by 60% over the past five years.

What’s next, ask Chris Grech and Calvin Bartolo.

19 Making attractions attractive

44 A city of celebrations

22 Serendipity island

47 On the road

Visitor attractions should offer a memorable experience.

But how do we achieve that, asks Janet Uttley.

Community-based tourism is small, personal, intimate.

So why is it being treated as big business, asks Victor Paul Borg.

29 The place to be

Hand delivered to businesses in Malta, all 5 Star Hotels including their business centres, executive lounges and rooms (where allowed), Maltese Embassies abroad (UK, Rome, Brussels, Moscow and Libya), some Government institutions and all ministries.

33 The return home

Let us entertain you, but safely and legally, say Mark Grima and Hugo Chetcuti from the Paceville Commercial Establishments Association.

Australia weathered the global financial crisis and Sydney is a symbol of this success, says Vanessa Macdonald.

If you’re planning to spend your holidays travelling overland, these cars should be on your map. Money clocks up the miles.

58 Boarding passes Money flies in first class with these travel essentials.

61 Sicily turns chic For Mona Farrugia, Sicily presents a tasty offer you cannot refuse.

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6 - Money / Issue 13

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Interview

Vanessa Macdonald is a freelance journalist in her spare time, covering a wide range of lifestyle and economic issues.

A man for all tourism seasons Minister for Tourism, Culture, and the Environment Mario de Marco is far from disappointed by the tourism figures. He is satisfied that Malta is doing all that it can to survive – and even flourish – in spite of the economic downturn in Europe, shorter stays, late bookings and fewer seats. He speaks to Vanessa Macdonald. Photos by Nicky Scicluna. there were 2.6 per cent fewer tourists in the first four months of the year and instead replies about the winter season – November to March – and notes that in fact, Malta had 320,000 arrivals, just 20,000 fewer than last year. And if you take into account the fact that 12,500 of those who arrived in February and March last year were evacuees from Libya (they still have to be counted as tourists if they stayed overnight), then the drop this year was just 7,500, which he considers to be very good in the circumstances.

“Through the MHRA, the Malta Tourism Authority and Air Malta, we identified tour operators who could help us to boost the take-up of the available seats, especially from Germany. And we managed to get the seat-load factor up by nearly five points to close to 70 per cent,” he explains.

It is, of course, not just about arrivals but also about how long they stay – and the length of winter stays went up from six nights to 8.1 nights – so total guest nights this winter were 2.7 million, an increase of 60,000 bed nights over the previous year, even if you include the evacuees. Without the evacuees, it increased by 55,000.

Moreover, the National Statistics Office also estimated that tourists spent €260 million last winter, an increase of 2.9 per cent.

I

t really wasn’t meant to be a good winter. Just a few months ago, the Malta Hotels and Restaurants Association went pale at the thought that Malta was going to lose a staggering 141,000 seats – 70,000 passengers – this winter.

flights to Rome and Milan were also cut.

Since around 65 per cent of available seats are actually used in winter (the seat-load factor), the MHRA fretted that this could mean some 45,000 fewer winter arrivals.

Not only was Air Malta operating with fewer aircraft, but Ryanair also cut its winter fleet by 75 aircraft, obviously also affecting its Malta operations. Easyjet

Tourism Minister Mario de Marco may have had some worrying nights, but he gives no evidence of it now. He brushes off a question about the fact that

This is why when it comes to the first four months of this year, he is far from worried, noting optimistically that it was a record April – up 1.4 per cent – and that it could have been a lot worse.

“Let’s not forget that some of our main core markets – the UK, Italy and Spain – are going through economic suffering and as a result outbound travel from these countries has gone down. So I think that the winter results should give us confidence for this season,” he said.

Money / Issue 13 - 9

Interview

“There are seven months of summer and we cannot let down our guard merely because April was a record month.

Anything can happen between now and October and a one per cent drop in June would be much more significant in absolute terms than a 10 per cent drop in March.”

So how does the summer look?

The seat capacity is up. The reduction in Air Malta seats was made up for through Air France, which is flying to Toulouse for the first time, Lufthansa, which is increasing its frequencies on a number of routes, Ryanair, which has seven new routes, and Air Berlin, which introduced new routes.

The indications are positive, in spite of the fact that visitors and conference organisers are booking later than ever, and keeping heartbeats racing till the very last moment. May actually turned out better than the industry was forecasting just a few weeks earlier.

Even conference and incentive travel seems to be recovering, an important

10 - Money / Issue 13

sign as companies tend to not send people overseas in hard times, even if this is just for perception reasons.

“Our advantage in Malta is that we are close by and relatively cheap – so we are still good value for money,” he points out.

Having a few A-list film stars like Tom Hanks in Malta is clearly an advantage too, adding a bit of glamour and what Dr de Marco described as the “wow factor”.

“But we need to keep very focused.

There are seven months of summer and we cannot let down our guard merely because April was a record month.

Anything can happen between now and October and a one per cent drop in June would be much more significant in absolute terms than a 10 per cent drop in March.”

Times have changed and the way in which Malta promotes itself has had to change too. There was a massive campaign at Harrods in London throughout the month of March, part of which was aimed at tourism. But apart from that, the MTA does not tend to focus on just big ticket items (such as its sponsorship of Sheffield United). And forget about having representative offices in a few destinations. With new markets opening up way beyond the traditional limits of Europe to places like Poland and Lithuania, Malta has to be known in more places, diluting its efforts across a much larger geographical spread.

Another change is that people only come for four or 10 days rather than a week or a fortnight. This means that airlines need to operate to a destination at least twice a week. And it makes it much more important to have direct flights as with a shorter length of stay, people do not want to spend ages getting to a destination because of connecting flights. So it is very significant to note that while in 2006, Malta was connected to 45 airports, it now has 81 scheduled routes.

And whereas it was enough to advertise for the three months after Boxing Day in the good old days, now people decide where they are going on holiday at the very last minute, so you need to have a presence all through

the year. Given the cost of television advertising, this medium is no longer an option in most cases and the emphasis has shifted much more towards social media and the internet. The MTA still brings over 500 to 600 journalists a year, as these multipliers have proved to be very effective.

These steady campaigns are far less dramatic than the somewhat trial and error approaches of the past, and it is surely no coincidence that Josef Formosa Gauci has been CEO at the MTA for longer than any of his recent predecessors. And the fact that no one is allowed to become complacent means that all involved realise how important it is to communicate and monitor. The ministry and the MTA review all the figures three times a week to see whether they need to react in any way.

The one thing that the minister wants to avoid is knee jerk reactions. He had been adamant some years ago that hotels should not drop their prices when times got tough – but some panicked and they are still paying the price as the average revenue per room is still struggling to get back to previous levels.

It is not easy to keep your head when competing Mediterranean destinations like Egypt, Tunisia and Greece are dropping prices to ridiculous levels. But that is precisely what he counsels.

“We cannot afford to go down that route. We really need to believe in our product. When five star hotels drop their prices, this has a domino effect on the four star and three star hotels. You need to keep a good price if you want to keep your business sustainable,” he says. And it matters – because without profits, there is no investment, and without investment, the product loses ground.

He insists that the government does not stand by preaching, oblivious to their pain. Apart from doing all it can to attract tourist numbers, it also set up a €10 million fund three years ago which helped over 100 beneficiaries take on sustainable projects, giving them back half their investment, while creating some 450 new jobs.

and the manufacturing industry – it carries a lot of cargo on its flights. All three sectors of Malta’s economy are heavily dependent on the success of Air Malta. Government cannot afford to do without it,” he states.

But tourism is not just about the last season or the next one. Where is Malta heading in the longer term?

When it comes to utility bills – a major headache for the energy-hungry industry – the government has come up with financing products like grants, lower interest rates and soft loans to help them become more energy efficient for the long-term, rather than give them subsidies on their bills which would have to be repeated every year.

But there is still one major question mark: the future of Air Malta. The European Commission has yet to approve the business plan and until it does, there will be considerable uncertainty. This is putting tremendous pressure on all

concerned but Dr de Marco is quick to praise those involved – unions, employees and management – for keeping level heads.

“Air Malta has passed through a serious restructuring exercise and hats off to the unions, workers and management for doing this without a single day lost to industrial action. This is a major feat in itself,” he says, noting that even the threat of action would have been a disaster for the tourism industry.

“Air Malta carries 45 per cent of our tourists. Also, it is crucial not only for tourism but also for financial services

Dr de Marco believes that the time will soon come when Malta will need to consider how many tourists it can cope with. In the past, the maximum was capped because of the summer saturation, but Malta has been successful in spreading the load more equally over other months. A study a few years ago said Malta could only cope with 1.5 million tourists a year. Even though the bed stock has remained fairly constant at around 45,000 with no new large hotels planned, he believes that the figure can not only be reached but extended.

“What I would like to see are smaller style luxury boutique hotels which would have 10 to 20 rooms maximum. These would give a totally different feel to the island. I am convinced that we have many old buildings that are simply crying out for development as guesthouses or B&Bs – and they would also help to regenerate a lot of our core urban areas in a sustainable way,” he says.

Reviewing our saturation point and seeing how to increase it in a sustainable way? It’s a far cry from panicking that we would lose 45,000 passengers last winter.

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Interview

Sustainable tourism Tony Zahra, President of the Malta Hotels and Restaurants Association.

Q What do you think about the MTA’s current marketing approach?

A MTA and MHRA regularly meet to discuss market conditions and also exchange ideas on how to market the islands. Consequently we support and are in agreement with the MTA marketing approach Q How would you compare your members’ investment levels with those of previous years?

A MHRA is concerned about the low level of profitability of the hotel industry. The last three years have seen an increase in the number of tourist arrivals, in the number of bed nights and in the achieved room rate which has increased the revenues of hotels – yet there has been an even bigger increase in costs and consequently the profitability has gone down. The industry and government must find

ways of decreasing costs – otherwise investments in hotels will continue to decrease as the hotel industry is not generating enough profits to remain sustainable.

Q Bed stock has remained fairly steady over the past few years. Is this a good thing or a warning sign?

A MHRA believes that the present bed stock is the right number given that the size of the islands is what it is and the islands are not going to get bigger.

Q In the past, we had a handful of destination markets. We are now connected to over 80 routes. Do you see this as an opportunity to tap new markets or a danger as we are diluting our efforts across too many geographical destinations?

A MHRA has been in the forefront in seeking to increase the source markets

and we are very pleased that this has been achieved. The secret to success is accessibility and the more accessible the island the more tourists will arrive here. We are indeed happy to see Malta connected to over 80 airports.

Q What is the top thing on the MHRA’s wishlist right now?

A We have three burning issues. The first is that Air Malta remains flying and returns to good health – we believe this can only be done if Air Malta sheds all ancillaries except for flying aircraft and marketing its seats. The second is Enemalta – the rate charged per kilowatt is far higher than our competitors’ and consequently lead to a sustainability problem for the hotel industry – Enemalta cannot pass on its inefficiencies to the consumers as this is hurting the industry badly. And third, to return the hotel industry to a sustainable level that we can re-invest in the properties.

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Tourism

Dr Michael Refalo is a former Minister for Tourism, Justice, Culture and the Arts. He is a Companion of the Order of Merit of Malta, a Fellow of the Royal Society of Arts and a former High Commissioner to the Court of St James’s.

For good reason Malta’s successful tourism industry has learned how to be different and how to showcase our unique assets, says Michael Refalo.

S

everal years ago while at a World Tourism Organization meeting, I was asked to explain why irrespective of the problems which also afflict other tourist destinations, Malta weathers the storm and regularly turns in a creditable annual performance.

Malta has had its share of troughs and highs that usually reflect the vicissitudes and economic health prevailing in our source markets. Although comparisons are odious a brief look at the industry’s history reveals the reasons why Malta does well.

Together with the rest of the world we Maltese have been witness to a long series of terrible happenings that have impacted negatively on the industry’s fortunes. They have impinged on consumer confidence, personal safety, comfort and added to humanity’s innate fear of flying. One recalls the spate of skyjacks, the 9/11 terrorist attack on New York which left thousands dead, and the Sars epidemic. Closer to home we’ve had the Gulf War, conflicts in the Mediterranean region and more recently an economic recession which lingers on in many European and other source markets.

Tourism is a shy bird and the first to fly away. Nevertheless its resilience is such that it is also the first to recover.

The mainspring of Malta’s longterm success is the partnership which successive post-1987 governments forged with the industry’s stakeholders. The wide-ranging remit of Malta’s Tourism Ministry currently also responsible for culture and the environment has without the shadow of a doubt enhanced the host community’s quest for a better quality of life as well as a more positive holiday experience for visitors.

The combination of running, conserving and promoting our millennial heritage under the same roof as the manmade and natural environment concurrently with tourism, Malta’s economic lifeblood, has been an unqualified success. Despite his farreaching responsibilities, the present incumbent Minister Mario De Marco has proved to be a clever, forward-looking, sensitive and successful leader.

Although Maltese and Gozitans are considered to be among the happiest communities on earth, they have an irksome habit of complaining and

grumbling at every turn. This trait is also a reflection of the popular desire to improve the small world in which they live. For example, embellishing and maintaining centre-strips and traffic islands – a relatively recent development although coming at a cost – shows clearly that the community relishes the welcome change for the better and no longer pilfers or vandalizes the flowers.

Barring erosion and an inordinate spread of buildings, the islands’ topography is practically what it was a century ago. The industry’s movers and shakers particularly in niche markets have continually diversified, improved and re-invented their offer.

Malta and Gozo are recognised internationally as a beautiful spot for diving, rivalling Sharm El Sheik. Not content with the attractions of the clear blue seas, interesting natural contours and rock formations around our shores, within a few years the wrecks which were placed on the seabed have developed into breeding grounds and habitats of marine flora and fauna. Gozo, in partnership with CMAS, has reversed an unwise decision taken a few years back that killed off the successful, off-season

Money / Issue 13 - 15

Tourism

Blue Dolphin Underwater Photography competition.

Re-inventing the product, making it more accessible and finding the right narrative to make it better known does not imply changing for the sake of being different. It involves a gradual process of differentiation, evolution and better presentation of our unique assets.

Heritage trails and country walks have caught the imagination of Local Councils which, armed with European funding and official blessing, extend the breadth of local and visitors’ knowledge. Rockclimbing is another pastime being tapped that has an excellent chance of reaping success.

The positive input generated by Institute of Tourism Studies graduates permeates the hotel and restaurant sector that has improved immeasurably.

Competition acts as the spur and exercises control over standards and prices. The rough edges of timeshare selling, which at one time dented the prospects of a worthwhile tourism segment, have been smoothed out. Transport is better regulated – although incidents and misdemeanours occur, they are not as frequent or blatant as in the past.

We have our share of problems, Air Malta’s survival being the most urgent and important. The smallness and ease of access to all parts of our islands inflate the problems caused by litterbugs, unruly building contractors and lawbreaking hunters. The introduction

of local government, now in its second decade, has bestowed town and village communities with a greater sense of local pride, fired the desire to keep their environs spick and span as well as highlight long forgotten aspects of their history and traditions.

Although the people of Malta and Gozo have become more caring, streetwise, and adroit, they are as hospitable as they were 30 years ago – even though there are exceptions to the rule, they are fewer and further between.

We will never be a perfect society.

However, as long as more Maltese realise and appreciate that living standards, economic success and quality of life are closely if not solely allied and dependent on an industry which contributes a quarter of GDP, the future of Malta’s tourism will for good reason continue to be as rosy as it was in the last quarter of a century.

“Tourism is a shy bird and the first to fly away.

Nevertheless its resilience is such that it is also the first to recover.”

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16 - Money / Issue 13

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Tourism

Janet Uttley is Business Development – Attractions & VAQAS Manager (Visitor Attraction Quality Assurance Scheme), VisitEngland.

Making attractions attractive Visitor attractions should offer a memorable experience. But how do we achieve that, asks Janet Uttley.

Earlier this year, the Malta Tourism Authority held a half-day workshop on exceeding visitor expectations for people working in attractions, as part of the authority’s commitment towards promoting quality among visitor attractions. This programme was part of the Visitor Attraction Quality Assurance Scheme. The objectives of the VAQAS scheme is to look at personal versus practical facilities and setting service standards that staff can engage with and be motivated by.

Q Are heritage and cultural attractions still a priority for travellers when choosing their destination?

A Today’s visitors are demanding speed of information, ease of booking and a range of offering. What is exciting is the rich diversity on offer – while heritage and culture are motivators, we should not forget that visitors will travel miles for the latest must-do theme park ride, unusual animal exhibit at a zoo, or a stunning garden.

we know, is vitally important and is something that VisitEngland is focusing on during this very important year when the world’s eyes will be upon us.

It also helps if there is a passion for the sector – there is nothing better than meeting a staff member who can enthuse with confidence on a particular display or decor. But we should never forget the backroom staff who maintain the accounts, devise the marketing plans and place the orders to keep the wheels turning – these people need other skillsets to deliver, and hence my comment that tourism has a place for all.

Q What are the more frequent complaints made by people visiting attractions?

Q How important is the role that people working in attractions play?

A That a visit is not ‘value for money’ – the solution here, if this comment is regularly provided via onsite visitor surveys or feedback forms, is to look carefully at staff engagement with visitors while they are onsite. Staff interaction makes a significant difference as value for money does not always indicate something is overpriced.

A Contact with staff impacts on all areas, including secondary spend, repeat visits, charitable donations, membership and of course creating ambassadors for the business to spread the word with friends and families.

Inaccurate pre-visit information is another gripe – there’s nothing more annoying than a website saying an attraction is open when in fact, upon arrival, the gates are firmly shut and the closed sign up.

Two key elements should happen at all well run attractions to make that visit memorable – a friendly welcome on arrival and a thank you on exiting. These two elements of staff contact make an enormous impact and say to the visitor that you want to welcome us and you care that we came.

I would also highlight that personal service can overcome many practical issues. Rarely will a visitor remember the poor layout of a car park or café – what they remember is how the staff who served them handled this. A friendly smile and can-do approach can overcome any practical challenge experienced.

Q What personal qualities should people working in attractions have?

Q What are the main aims of the VAQAS scheme and how does the tool function?

A There is a place for all, but it is important that those working frontline should be a people person – by this I mean confident to welcome, present, chat and generally show an interest in those coming through the doors. Welcome,

A VAQAS focuses on the quality of the visitor experience – our aim is consistently to raise quality and, where we can, help the business to be more profitable. Assessors have done a

considerable amount of work before they even get to the attraction itself: checking website, social media, calls in and out of hours, leaflets. The onsite element is thorough – car parks and toilets are checked alongside retail, catering and of course the attraction itself.

The assessor will then sit down with the named contact and give a face to face debrief covering the highlights, lowlights and any actions that they recommend need to be taken.

It is important to stress here that only one named contact will be aware of the visit – our independent assessors quickly pick up when the red carpet is rolled out for them and all are empowered to terminate the visit and return at a later date. It is not value for money for the attraction to get a report which gives detail on a visit where the assessor has been given VIP treatment.

Shortly after the visit, a full report will be issued to enable the named contact to share with other department heads and in turn all staff. The savvy business operator will then go on to use that report for a number of uses – internally for staff motivation and training and externally as part of awards or funding submissions. The list is actually endless of how you can use the report to demonstrate that the issue of quality is taken seriously.

Q What are the criteria of the VAQAS scheme?

A We follow the definition of a visitor attraction as set out in the National Code of Practice for Visitor Attractions which is: “A permanently established excursion destination, a primary purpose of which is to allow public access for entertainment, interest or education and can include places of worship; rather than being primarily a retail outlet or a venue for sporting, theatrical, or film performances.

It must be open to the public, for published periods of the year, and should be capable of attracting day visitors or tourists, as well as local residents.”

Money / Issue 13 - 19

Tourism

Heritage Malta

Quality Assured seal for visitor attractions The Malta Tourism Authority Quality Assured (QA) seal for Visitor Attractions was officially launched in July 2010 and the first nine attractions were certified in February 2011. This scheme follows on the successful QA seal for Destination Management Companies.

The aim of the QA scheme for attractions is threefold: it assists tourists in making a more informed choice; it helps quality attractions gain a competitive edge; and it encourages a quality leap in the sector through the creation of benchmarks.

The criteria have been designed in such a way that when an attraction complies with the criteria, the organisation will be improving the way it operates, thus leading to an improved business model.

Q Are the VAQAS service standards common to all types of attractions?

A We assess quality in context – for this reason we do not give star ratings to attractions. Not awarding star rating enables us to ensure the elements assessed are in context with the attraction itself. We do have a core criteria of the elements that we assess, but accreditation is not about making all attractions the same – it is about improving quality across the board. Helping businesses to be the best they can be will impact on that all important bottom line.

Q What attractions can apply to be part of the VAQAS scheme?

A All those that fit the criteria as set out in the code. We are particularly proud of the amazing wealth of diverse attractions on offer and as we move with the times we also recognise experiential attractions such as Aerial Extreme, where the whole visit has the assessor swinging from the trees as they follow the visitor journey or the Tank Museum in Bovington, Dorset, that involves the experience of driving a tank – you have to be fit to be a VAQAS assessor!

Q Can you give us an outline of your main findings in Malta?

A We should remember that the visit was for just two days, one of which was spent delivering a workshop so we could not possibly give feedback on her experience of Malta as a whole.

However what I can say is that our assessor was impressed by the passionate staff she saw in action and two sites in particular received praise, namely The Limestone Heritage site and The Aviation Museum.

Our workshops always inspire both the facilitator and those taking part and this one was no exception – the feedback has been how enthusiastic and focused those joining the session were and the desire to improve was impressive. From the participant feedback that we received, I can clearly see this was a very useful exercise for the businesses in attendance.

20 - Money / Issue 13

The scheme consists of 56 criteria, some of which are mandatory. Attractions must satisfy all mandatory requirements and achieve a sufficient score in the remaining criteria. The criteria cover several areas including the quality of content and interpretation, value for money, staff training, cleanliness, layout and comfort, quality of service and visitor feedback among others.

One of the primary benefits of joining the scheme is improved client perception thanks to the credibility offered by a recognised national scheme. During the two-year certification period, quality assured attractions will also benefit from MTA marketing support through a variety of promotional tools, such as: increased visibility on www.visitmalta.com and at all major Tourist Information Centres run by the MTA; promotion through a high quality brochure distributed to strategic locations such as Tourist Information centres and travel fairs; feature articles in trade magazines; and recommendations to visiting journalists.

The MTA also organises training seminars for operators and staff of visitor attractions with the last one held in April 2012. The half-day workshop focused on the theme of ‘Exceeding Visitor Expectations’ and was delivered by Hazel Hook, Quality Assessor for Visitor Attractions Quality Assurance Scheme by Visit England.

For the full set of criteria, visit www.mta.com.mt/qa-attractions.

If you own or operate a visitor or tourist attraction and are interested in being part of this quality recognition scheme, you may do so by contacting the MTA on stephanie.rocco@visitmalta.com

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Tourism

Serendipity island Community-based tourism is small, personal, intimate. So why is it being treated as big business, asks Victor Paul Borg.

Photos by Victor Paul Borg.

T

he allure of Gozo lies in its rural ethos, its natural landscapes, and its traditional way of life. That may be stating the obvious – but how do you package such experiences for tourists?

Partaking in such experiences is not the same as visiting a museum or exploring a historical town centre or even attending a feast – rather, such experiences are diffused in the community, and that requires a style of tourism that’s known as community-based tourism.

It’s a paradigm of tourism that’s made much headway in south and east Asia, and that’s where I got acquainted with that style of tourism (part of my work involves travel writing and tourism consultancy in Asia).

I began working on the development of communitybased tourism in Gozo partly

22 - Money / Issue 13

because encouragement by the director in charge of eco-Gozo – who is eager to foster fishing tourism among fishermen as enshrined in the eco-Gozo action plan – convinced me that the time is right. I set about designing immersive itineraries that would give tourists the chance to soak up Gozo’s nature and culture during outings that maximise active learning – learning about nature in nature walks, learning photography or watercolour paintings with a practising travel photographer or watercolourist in special outings, learning to cook traditional dishes in the home of a competent and affable home-cook, learning about farming by spending a day pottering at a farm or orchard, or making Gozo cheese at a sheep farm, and learning about fishing by going out fishing with a real fisherman on a real fishing trip.

What distinguishes this type of tourism is the organic setup: tourists simply get to spend quality time with the members of the community who are engaged in the things that the tourists seek to experience.

That’s how the members of the community become tourism service-providers, hosting visitors who would experience facets of Gozo’s rural traditions and cultural ethos in an authentic manner.

The director of eco-Gozo directorate within the Ministry for Gozo understood the concept. Then, as I developed the programmes and designed a website, it was time to involve the Malta Tourism Authority (MTA) – and that’s when the problems started. The chief of the MTA in Gozo came to a meeting we had called wielding an intractable demand: she said that an operating licence from the MTA is a legal requirement, and she gave

me an application form to fill up to begin the process of acquiring a permit. The application form was for an excursion organiser, and one requirement of the application would be to show a MEPA permit for the premises where my office would be situated, and procure insurance cover for my potential clients.

I pointed out that I do not work from an ‘office’, and the only presence of what I was doing was a website – so how could I supply a MEPA permit for the premises where I supposedly work when the only premises is virtual?

None of my other associates, the service-providers – be they artists, farmers, fishermen, home-cook, ornithologist, and so on – work from an office either. All of us are self-employed – I was merely building a network of freelance operators who would collaborate in offering

Victor Paul Borg is a writer, photographer, and specialist in adventure and rural travel www.victorborg.com tourist experiences, each person offering the chance for tourists to partake in the specialist activity that that person is involved in during the course of his or her work.

I am also self-employed – I am a writer, photographer, travel consultant and designer – and I work, as I have done for the past 15 years, from a desk set in a corner of my bedroom (my family lives in a small apartment, and we don’t have space for a study room, so I work in the bedroom). Besides, I don’t run excursions – I was simply designing, marketing and leading experiences in community-based tourism.

My points went unheeded and, in a spirit of compromise, the MTA chief said I could start by filling the first part of the application form, and then she would put my application on hold until my business activity would pick up and then my application would be processed and I would have to pay the licence fee and insurance. But I didn’t want to take part in the kind of charade she suggested, and I maintained that I couldn’t be defined as an ‘excursion organiser’ by any stretch of the imagination, and I could not apply for something I am not and never will be.

Then she threatened me with legal action – her exact words, in an e-mail, were that if I am to, “be found in breach of regulations which fall under MTA’s remit we would have to proceed accordingly.”

She also told me that I would be exempt from the provisions of the law only if I limited my clients to groups of less than four at a time, and if they would visit one place only (as opposed to driving around). If I had groups of larger than four, then I would be obliged to be licensed as an ‘excursion organiser’, and it would be mandatory to take a ‘licensed guide’. So if I got a family of five asking for

an experience at a farm, or a nature walk, would I have to tell them that one of them would have to stay behind?

It would be ludicrous. So I pulled the plug on the online website I was building.

But that’s not the end of the story. At the same time, I was exploring the possibility of collaboration with a company called Malta Outdoors, which offers outdoor sports adventures to tourists. Malta Outdoors didn’t have an MTA operating licence, and last year the officials from the sports section of the MTA told them that in their case

they do not need an operating license because they do not work from office premises.

Yet neither do I work from premises in my case, but the MTA official in Gozo was even insisting on the MEPA permit of the place where I worked, irrespective of the fact that I worked in my bedroom.

I wonder: who is right, the officials from the sports section or the official in Gozo, whose interpretation of the law is different? And what’s the cause of such inconsistencies?

These inconsistencies and contradictions are caused by muddled thinking, and the cause of such befuddlement is the MTA’s erroneousness in perceiving communitybased tourism through the prism of a tour operator’s business. People like me are not doing tours or excursions by any measure – it’s also daft to stipulate that a licensed guide has to accompany tourists in such cases. What can a tour guide do at a farm except get bogged down in mud or manure, or get seasick or queasy in a fishermen’s boat? Can a tour guide teach people watercolour paintings or photography? Can a tour guide show people how to cook traditional Gozitan dishes or sweets? Or, if a tour guide takes people walking in the country, would he recognise the different plants or birds? A licensed guide knows nothing of these things.

But the MTA has yet to see that community-based tourism is a different paradigm than traditional tours. The MTA needs to go through a paradigm shift to begin to deal appropriately with communitybased tourism, which has a set of characteristics that are different than those

of mainstream tours or excursions. One of those characteristics is that such tourism is a niche, and it can never become big business – if it becomes big business, then it will no longer be communitybased tourism, but will become something else. There is just no space for large groups in community-based tourism – you can’t have a whole bus of tourists traipse around ruining crops in a farm, or squeeze into the kitchen of a home-chef, or fit on the boat of a traditional fisherman.

Community-based tourism is small, personal, intimate – and it can’t withstand the costs of big business. All the costs that mainstream tour operators can absorb as operating costs – such as licensed tour guide, tourist-licensed vehicles or boats, group insurance, and so on – are too much to bear for niche community-based tourism.

In my case, even the basic costs that the MTA expected me to incur would tip the balance of viability. I am talking about the licence fee of €400 annually and the insurance that would cost at least another €1000 annually.

Those costs would amount to more than half the money I could realistically hope to make yearly, so what would be the point of working in the first place?

This applies to everyone else in community-based tourism. A farmer who hosts tourists on his farm would still remain a farmer, a fisherman would remain a fisherman, and I would remain a writer and photographer – the income from servicing tourists would only supplement our earnings.

That’s how it should be to ensure the experiences remain authentic and that’s how it will work in reality.

Money / Issue 13 - 23

Tourism

The MTA has yet to see that community-based tourism is a different paradigm than traditional tours.

Despite such niche economics, community-based tourism offers wider societal benefits because it would serve to inject economic vigour into the rural economy of Gozo at a time when the rural economy is floundering.

Farmers, fishermen and artists are struggling in Gozo, and if we can make some money giving meaningful experiences to tourists, then it might serve to give us sufficient economic and psychological fortitude to stay engaged, rather than give up.

I am not saying there should be no regulations or licensing requirement.

On the contrary, licensing is a useful tool in weeding out incompetent or clumsy service-operators or hosts who could tarnish this industry. But any regulations or guidelines have to be tailored specifically for communitybased tourism. Assessments can be carried out to ensure that the operators who get a licence are actually able to offer the kind of specialist service that they purport to offer – for example, anyone who leads nature walks has to demonstrate knowledge of rural environment, geology, paths, and ability to identify species of wildlife – and also to ensure that licensees have the necessary communication skills and aptitude to host or serve tourists.

Other than that, a workable solution needs to be found for the insurance, which can be debilitating to small freelance operators.

If the MTA can adopt this new paradigm and foster community-based tourism, then it will flourish, as scuba diving has done. We have been waiting for the MTA to start enabling us instead of smothering us, as it is currently doing. Other countries, including some of our direct competitors in the Mediterranean (particularly Italy and Turkey), have thriving niches of community-based tourism. But our potential in doing the same in Gozo is being wasted away and our rural economy and traditions are dying.

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Malta

a cool climate that’s hot on the quality-oflife index.

I

t’s official - Malta has the best climate on earth.

Malta was one of two countries that were tied for first place with the title of Best Climate, according to the Quality of Life Index issued by the International Living magazine last year. Sharing top honours was Zimbabwe.

Yet a Mediterranean climate (over five hours of sunshine a day) isn’t all that Malta has to offer. Malta’s many other virtues in the nine categories of the IL index combined to earn it 3rd place overall in the Index, pipped to the post by the U.S. and New Zealand. That ranking speaks volumes for the size of Malta’s quality offering relative to the island’s land mass of just 122 square miles.

How about a stable government, economy and a modern health service?

These factors carry a lot of pull for wealthy English and Europeans looking to get away from their frosty climates. In fact, frost and snow are unknown in Malta with shirt sleeve order and temperatures of 70 degrees Fahrenheit (21 degrees C) in November. Flights to many European capitals are just three hours away. Crime is low, education levels high, the locals

26 - Money / Issue 13

hospitable and English-speaking with 48 English language schools. As a result, homes and apartments here have now attracted the international set. So have the historic harbours, 5-star hotels, restaurants and summer nightlife.

But overseas domestic buyers aren’t the only ones to recognise the reputation of the island’s property potential. Malta’s success in attracting City hedge fund managers to redomicile to the island as a result of a well-regulated and cost-competitive jurisdiction has spurred more demand for high quality homes in the sun.

Back in 2000, it wasn’t like this.

Sure, the island had a loyal following of repeat overseas visitors but nothing that one could call gold standard.

Despite its geographic location and abundance of sun and sea, Malta’s lifestyle as an up-market destination had little relevance for the aspiring

overseas home buyer. That was until Portomaso was built.

George Fenech, the Tumas Group’s Chairman, pioneered the lifestyle concept in Malta. He had a €140 million dream. He wanted to enhance the quality of life for those buyers who could make the right investment decision. His vision of the Portomaso marina would bring Malta to the attention of the international property market with an Oscar of the property world - Gold Award in the Best Marina Development Category in the 2005 International Property Awards.

As a result, Portomaso was acclaimed the most exclusive address in Malta and became home to the well-heeled, international celebrities and footballers.

Those who bought in 2000 have seen the value of their property rise by over 300%. Rental returns, too, have risen by 06% to 10%.

The value of Portomaso property has risen by 400%. Might this reflect property expectations by overseas buyers for Tas-Sellum and Ta’ Monita residences, too?

Out of the Portomaso mould have been cast two more luxury developments in the north and south of the island, both a stone’s throw from the Med. They are already reaching completion, thanks to Tumas Developments, the Group’s property arm. As both properties websites rather prosaically state, these two new residencies ‘offer lifestyle choices of the highest standards’. More to the point, poured into these two moulds are all the expectations of luxury, safety, tranquility and, you’ve guessed it, lifestyle. Tas-Sellum and Ta’ Monita have been designed to suit most pockets. Tas-Sellum offers a one-bedroom apartment of 68 square meters starting at €158,000 going up to a million plus for larger apartments whilst Ta’ Monita offers apartments starting at €98,000 going up to a million plus. Both residences are termed Specially Designated Area*, allowing the buyer to purchase more than one property in Malta and Gozo for private use or for business.

Perhaps we should create a Portomaso Quality Index. Zimbabwe wouldn’t stand a chance.

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City fund managers and international footballers also recognise the value of good property standards in Malta.

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Web : www.tumasdevelopments.com

Money / Issue 13 - 27

www.visitgozo.com

www.gozo.gov.mt

www.ecogozo.com

Entertainment

The place to be Let us entertain you, but safely and legally, say Mark Grima and Hugo Chetcuti from the Paceville Commercial Establishments Association. Photos by Nicky Scicluna

R

ecently, clubbing entrepreneurs and restaurateurs officially launched the Paceville Commercial Establishments Association, aimed at giving them more representation in the decision-making processes that affect Malta’s prime entertainment area.

gives us strength in numbers – the PCEA is open to anyone who has a business in Paceville, and not just to a few select individuals.”

“By its very nature, Paceville has specific needs and demands,” says Mark Grima, PCEA president. “It cannot be treated like any other area.”

For Grima, one of the main challenges is countering the bad name that Paceville has.

“By being an association, we can have a say in decisions which ultimately affect our business,” says Hugo Chetcuti, PCEA vice-president. “An association

To meet these challenges, the PCEA is willing to work with other bodies and local councils.

“We should work together to dispel the bad name that Paceville has – Paceville is Malta’s prime entertainment hub and plays a significant role in attracting tourists to Malta. Which is why we need to promote it and give it a good name,” says Grima.

“The media only tells one side of the story and whenever, for instance, a fight breaks out, it gets plenty of column inches, all for the sake of sensationalism.

But the reality is that thousands of people visit Paceville and incidents are minimal – moreover, the majority are good people who come here to have fun without ruining that of others.”

That said, both Grima and Chetcuti believe that there needs to be a stronger legal framework that supports Paceville business owners.

“We are here for change, and we won’t allow Paceville to be used as a pilot project when testing new regulations.

Money / Issue 13 - 29

Entertainment

We aim to rectify or guide any laws in order to protect both business owners and residents.”

“I’ve been here for 26 years,” says Chetcuti. “And in all these years, some issues have never been addressed or resolved.

One of the main challenges is littering.

“Police should issue on-the-spot fines for littering. Everyone must assume responsibility for their mistakes and we need to crack down on all offences, including the so-called minor offences and public disturbance.”

That, of course, would be balanced by a greater effort to keep the area clean.

“A cleaner Paceville would in itself be a deterrent,” says Chetcuti. “For instance, if you have a five-star restaurant, diners wouldn’t scrawl graffiti on the bathroom walls. The same thing goes for Paceville – if we clean it up thoroughly, people would think twice before littering.”

The PCEA also advocates for more traffic regulations.

“Also, while we have invested a lot in noise-reduction technology for our clubs, boom-box cars are allowed to escape scot-free.”

Grima and Chetcuti also believe there should be tougher penalties for people who attack policemen.

We should work together to dispel the bad name that Paceville has.

Mark Grima

I’ve been here for 26 years. And in all these years, some issues have never been addressed or resolved.

Hugo Chetcuti

30 - Money / Issue 13

“We need more surveillance cameras and a stronger police presence,” says Grima. “A good idea would be to have a mobile police station in Paceville.”

Yet the PCEA is not just about laws and regulations – it also wants to improve the area through diverse events and attractions such as a Paceville carnival. After all, it’s all about making an entertainment area really entertaining.

Travel

Sean Patrick Sullivan, Money’s North American correspondent, divides his time between the Toronto and Manhattan areas, where he writes about culture, creativity, and communication for a variety of brands, agencies, and publications. He also rather enjoys cardamom.

The return home Malta needs tourists – or does it? Sean Patrick Sullivan proposes an entirely different approach to encouraging an influx of people (and, of course, euros). worn by an international assortment of discerning globe-trotters) instead.

Now let’s say we do. Would that be enough to infuse our economy with much-needed capital and attention?

Probably not. Which is why the next recommendation you’re about to read is for the Maltese government to actively encourage part-time residence. For everyone.

Just imagine: Maltese residents, mobilised and incentivised to spend more time abroad, especially during high season. This clears the decks for visitors of a different (perhaps more invested) variety, ensuring a year-round ebb and flow of capital into the country.

It’s about something more than money. It’s about terra-forming our national identity into something jet-set, glamorous, sophisticated: a diamond solitaire in an otherwise fizzling eurozone, a model of 22nd-century drivethrough globalism for the entire world to admire.

C

onventional wisdom has it that Malta, with its limited industry, landmass and natural resources, wants and needs ever more tourists, spending, and development of our precious jewel of an archipelago.

May I be candid? Whenever I hear this, the first thought that comes to my mind is: where on earth do you intend to put these people?

It’s been repeated so often that it has lost all of its rightful resonance, but during high season, Malta’s full-time population is outnumbered by visitors.

Encouraging even more tourism may be cause for jubilation amongst hoteliers and restaurateurs. At the same time, it places enormous burdens upon roads, hospitals, and many of the other infrastructural necessities impacting quality of life for residents. If everyone (or almost everyone) becomes directly

or indirectly richer from tourist dollars, yet at precisely the same time worse off in every other way, then the cult of more! more! more! isn’t offering anyone much of a victory.

Add to this the much-resisted, muchresented issue of political instability in North Africa – and the waves of refugees it has and may once again bring to our rocky shoreline – and one is compelled to ask if there might be another, better idea.

There is. And I know because I came up with it. As suggested in this column late last year (Luxe Redux, Nov/Dec 2011), something glorious is waiting to happen when we switch from generic, mass-market, sun-kissed-Mediterranean positioning to something considerably more distinctive, luxurious, and (yes!) expensive. In other words, it doesn’t have to be about head count. We can lure deep pockets (preferably made by Prada and

When this happens, the irony will be particularly rich. After all, historically, with our cavalcade of conquests and occupations, Malta has always been someone else’s pied-a-terre. Now it’s time to own it. And charge for it too.

Sound peculiar? Ridiculous?

Well, perhaps. But no more so than the government’s post-World War II emigration subsidies, a socialengineering mandate which inexplicably financed the flight of two entire generations over to Canada, Australia, the UK, and the US. Speaking of which, for this parttime proposal to work, we need those emigrants or their descendants back, at least a few months per year. Estimates vary, but according to most “Maltese outside Malta” advocacy organisations, there are three times as many Maltese people living outside Malta than there are in Malta.

Money / Issue 13 - 33

Travel

Many of these people, as descendants rather than emigrants, have never experienced the luscious urbanity of Valletta, the buzz of Sliema, the prehistoric grandeur of a single megalith.

One might think such low-hanging fruit would be a top target for our tourism advocates and campaigners.

transforming entrenched relationships between ethnic identity, tourism patterns, and international favour, all for the better. In fact, despite Middle Eastern tensions, non-subsidised tourism to Israel is at an all-time high.

Other countries are duplicating the programme to stunning success.

But, if you take a look, it’s clear we (as I’m a descendant myself) aren’t.

Malta’s branding still favours the blandly sunny and non-offensively Mediterranean, with an official logo and mark so vague that it could just as well be for Sicily, Capri, Barcelona, or even Istanbul.

But not Israel. Which is a shame, because no other country markets itself to its own diaspora quite as brilliantly. Nor does any other country make temporary residence (in- or outbound) feel quite as appealing, alluring, revolutionary, important.

If it was up to me – and I often wish it was – Malta would do even more. How about an identity system with some energy? Our visual arts, from antiquity through the Renaissance and beyond, have always been superlatively kinetic and contemporary-looking, replete with bold geometric patterns in bright jewel tones, a certain too-much-ness anticipating Andy Warhol by at least 500 years. Surely someone has what it takes to translate this heritage into a contemporary brand, something like the Cool Britannia movement of the early 1990s.

`In the award-winning Tours That Bind: Diaspora, Pilgrimage, And Israeli Birthright Tourism (New York University Press), Shaul Kelner explains how the revolutionary Birthright Israel programme – a 10-daylong, all-expenses-paid experience for Jewish-American youths – is

Of course, a brand that never gets seen isn’t a brand worth building. Which is why I recommend the opening of permanent Outpost Malta boutiques in Astoria, Toronto, London, and Melbourne – similar but far more overthe-top pop than the recent Maltese installation at Harrods.

Yes, when it comes to drawing descendants and expatriates back home, few gimmicks (and make no mistake – it is a gimmick) would work quite as well as a Twitter-trending cafe/retail/social space in one’s own backyard, serving warm pastizzi, cool Kinnies, and an invitation to come back home, even if for one month per year.

It’s back The ninth generation Honda Civic has just been launched in Malta. As media representatives and guests gathered by Neptunes’ waterpolo pitch, the new Honda Civic made its grand entrance as it sailed inshore on a self-operated barge. The development period for the new Civic spanned over four years.

Nearly all the components are new to the Civic or have been further developed with areas of focus being on the suspension set-up, the interior materials, the new design styling and aerodynamics, and the engines. Mr Alastair Zammit, director at Zammit Group, said that, “With the current increase of fuel prices across Europe and the environmental targets set to achieve low emissions, it was concluded from the European customer survey that the current Civic customer not only considers modern styling and performance to be important but also cost efficiency, low running costs and eco-friendliness.”

The new Honda Civic is one of the sector’s best performers with regards to low CO2 emissions with its 2.2 i-DTEC diesel engine model producing just 110g/km with 150 PS and 350 Nm of torque. Ms Carolyn Zammit, director at Zammit Group, said that, “The new Civic will supersede the expectations of consumers. Test drives are available and one can book a session from beforehand.”

The new Honda Civic is available in Malta in 1.4 i-VTEC, 1.8 i-VTEC and 2.2 i-DTEC engines. For more information call on 22781 222 or e-mail honda@zamgroup.com

34 - Money / Issue 13

Money / Issue 12 - 34

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Finance

Assuming responsibility The financial services industry is contributing to tourism, but there’s still no clear agenda, says Reuben Buttigieg.

T

he growth of the financial services industry in Malta is a phenomenon that has now been recognised by all. The contribution of this growth to the tourism sector is not to be underestimated. Yet it seems that the two industries are not working hand in hand at all levels and this situation appears to spring from their basic policies. Indeed, it seems that the two industries are giving a mixed message on what Malta actually represents.

This somewhat confused sense of direction may additionally be due to the fact that the financial services sector, an industry which is now contributing almost 25 per cent of the Gross Domestic Product, does not have its own Minister or, at least a Ministry securing for it a leading priority on the agenda.

36 - Money / Issue 13

There is the Ministry of the Tourism.

We also had Ministries responsible for manufacturing when this sector used to represent a high contribution to GDP. However, despite its growth, the financial sector industry to date falls under the direct responsibility of the Ministry of Finance.

For many people, this appears to be functional enough. Still, the industry has developed to an extent whereby such reasoning does not make sense and it is leading Malta to an unfavourable situation where the parameters of the Minister’s responsibilities are far too wide to allow him to concentrate on the financial sector as much as he himself most probably wishes to. This, of course, could potentially create a situation where in effect certain policies end up being

formulated or put into effect away from the Minister’s full control.

Some may argue that the Minister could always delegate certain duties. However, here we are speaking of ensuring that the financial services industry truly and fully follows the sense of direction the Government has in mind according to its holistic vision and not according to what one or more individuals may think is best.

The creation of FinanceMalta was meant to be a breath of fresh air in reasoning and in achieving coordination between industry, regulator and government. Improvements have surely been made. Nonetheless, the old school of thought is still enjoying too much influence and the project does not appear to have reached its original aims.

Reuben Buttigieg is Managing Director of Erremme Business Advisors and President of the Malta Institute of Management.

In my view, FinanceMalta needs to coordinate much more with embassies, the Malta Tourism Authority and the Lotteries and Gaming Authority.

It should also stand more on its own feet and seek to be less influenced, for instance, by the Malta Financial Services Authority. As things stand, FinanceMalta seems to have taken the language of MFSA too much on board.

FinanceMalta is in part privately owned. It should therefore also seek to collaborate as much as possible with organisations from the private sector. It needs to effectively rope in the main actors in the tourism sector as this industry needs to complement the services provided by the financial services industry.

Today, our tourism infrastructure is rather weak in some areas and may not be in a position to provide the quality service expected by certain persons brought over by the financial services industry. Yet, what have the two sectors done to suitably remedy the situation? To my knowledge very little has been done and there seems to be no collaboration – let alone involvement – with the Malta Hotels and Restaurants Association (MHRA).

The tourism industry does not seem to have recognised what the financial services sector is bringing to Malta and likewise the financial services industry does not seem to acknowledge the need of having good complementary services. A common strategic direction is urgently required.

For ages we have been promoting Malta as a bridge between North Africa and Europe. This so called bridge however is not always reflected in the services we offer. The tourism and financial services industries could and should do much more to ensure that cultural differences do not create problems for visitors.

For instance, it is far from easy for a true Muslim to find what he expects during a holiday in Malta, because

the hotel industry does not cater for all his needs. Meanwhile, the concept of Islamic Finance is still dormant because Maltese regulators have been sitting pretty for far too long.

Another example is that occasionally one witnesses a rather negative attitude towards certain European nationals. We have to be very careful if we do not want to risk seeing Malta’s hospitality going haywire.

A generous investment in an exhaustive educational campaign on dealing with foreigners of different nationalities or cultural backgrounds would surely be beneficial. Such a campaign should first focus on people working in the tourist industry and then be extended to the general public.

Malta has been promoted as a multilingual community with strong English language skills. However, over the last few years these skills seem to be passing through a difficult time.

The tourism and financial services industries on occasions are facing serious difficulties.

Regrettably, concrete action has yet to be taken by education policy makers. It seems that they still have to give the matter appropriate importance. Malta has nothing to gain if many members of the new generations are unable to speak or write proper English. This will surely have a negative impact on both the tourism and financial services industries. We are already seeing certain effects.

The few points addressed here are meant as a wakeup call on certain issues.

We have to understand that it is not an ideal scenario if certain organisations let themselves be led by what one can perhaps call ring-fenced seats.

Better and stronger coordination is needed, at Ministerial and operational level, among leading sectors such as tourism, financial services and education.

Eco friendly business SkyParks Business Centre has become Malta’s first Grade A office park on obtaining a Building Research Establishment Environmental Assessment Method certification.

BREEAM sets the standard for best practice in sustainable design and aims to mitigate the impacts of buildings on the environment. SkyParks Business Centre has scored high marks for location, performance history and building efficiencies, which refers to structural and engineering finishes, access and exit routing, parking, energy management and scalability for expansion. “This accreditation gives us all great satisfaction. Even when this development was at a conceptual stage, it was our ambition to work towards such an award,” said Alan Borg, General Manager of SkyParks Business Centre.

The building has obtained high credit rating in the water category, specifically for water recycling with a large rainwater reservoir built for rainwater catchment as well as a low-water irrigation system for landscaping. In the transport category SkyParks scored well due to proximity to amenities both within the business centre and at the airport terminal.

The carefully thought out space available for tenants both within the building and outdoors further boosted the building’s credit achievement in the health and well-being category as did the glare control shading systems for the windows. The development achieved a good credit rating within the management category as the management team worked constantly to keep the public well informed at all stages of the development. Updates on the development are posted regularly on www.skyparksbusiness.com.

Skyparks Business Centre is scheduled to open by the end of this summer and already boasts 70 per cent occupancy.

Money / Issue 13 - 37

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The best or nothing.

Finance

Market report

The MSE index was down by 60% over the past five years. What’s next, ask Chris Grech and Calvin Bartolo.

T

he local stock market is a small and relatively illiquid market.

The 60% drop in the MSE index registered over the past five years could indicate that the local stock market is under-priced. This drop may also seem out of proportion in the light of a mere decrease of 12% in the S&P500, an 18% drop in the FSTE100 and a 16% drop in the DAX. The decrease in the MSE index is even larger than the decrease of 50% registered by the Nikkei225 over roughly the same period. This anomaly is even more accentuated when one considers that the Maltese economy did not experience any deep financial, property (at least on paper) or sovereign crisis.

We shall continue by looking at some technical considerations to determine whether the local equity market is in fact under-priced and whether there is an opportunity to capitalise on this mismatch.

Background The MSE Index tracks the local listed equities admitted to trading on the official list of the Malta Stock Exchange (MSE). The MSE Index peaked in April 2006 and the lowest point since then was in April 2009. The index value at the time of writing was approximately 13% above this low point.

Financial literature cite several factors as being fundamental drivers of shares prices such as the rate of GDP growth, the profit share of GDP and the price investors pay for every euro of earnings (the P/E ratio). Naturally the level of corporate earnings directly affects share prices and possibly lower volumes dampen share prices if this represents a lack of demand in local equities. We shall investigate which key drivers played a role in the decrease in the MSE index over the past five years.

GDP growth Share prices tend to increase in a booming economy since profitability increases. Malta’s real GDP growth (GDP growth corrected for inflation) at the pre-crisis levels stood at around 4%; it went into negative territory in 2009 and currently stands at 2%.

In the above chart, real GDP growth is plotted versus the MSE index and even without performing complex calculations to determine the level of correlation between the two, it is apparent that Malta’s GDP growth seems to move in tandem with the MSE index. The last time GDP growth stood at 2%, the MSE index was approximately 3000 – which is very close to the MSE’s current level. Furthermore, the bottom of the MSE index in 2009 coincides with negative growth in 2009.

It is therefore not unreasonable to say that the MSE index has properly discounted the movements in GDP growth and this may imply that better GDP growth in the future will drive the MSE index upwards.

Corporate earnings Corporate earnings are of critical influence on an index in the sense that if the level of profitability did not decrease then a fall of 60% in the MSE index should have been unwarranted.

The weighted average profits of the MSE index were calculated by averaging the profits of each company forming part of the MSE index and applying a weight determined by the equity (the capital) of each company as a proportion of the total equity of the companies forming the MSE index. It can be seen that apart for the anomaly registered between 2006 and 2007, corporate earnings and the MSE index were very well correlated.

Chris Grech and Calvin Bartolo are co-founders of blackdigits. com.mt, a financial website which allows users to analyse the financial statements of local listed companies. Data is available for free. The aim of blackdigits.com. mt is to create a community-based website where users may share their views and knowledge on companies listed on the local market.

Money / Issue 13 - 39

Finance

Corporate earnings are of critical influence on an index.

Although Maltese companies were spared any direct profitability hits as a result of the financial crisis, a number of one-off events have led to significant reductions in profitability. One can mention the Progress Assicurazioni saga of Middlesea Insurance plc (and indirectly Bank of Valletta plc), the VFM Property Fund impacting BOV and the investment in Forthnet undertaken

by GO plc. All these have decreased the weighted average profitability of the index by about €225 million over the span of a couple of years.

Looking ahead, one expects that the companies forming part of the MSE index now have lower contingent liabilities – this implies that the overall profitability could reasonably increase.

Volume One would expect that both companies and the general public sell their non-core assets during turbulent times. It is also possible that over the past years, Maltese investors shifted their financial interest into less risky options, such as bank deposits (as evidenced by the increase in deposits held by banks), more exposure to bonds or moved funds abroad driven by better returns in numerous markets following the lows registered after the crisis.

If share prices indeed decreased due to lack of interest in the local stock market

40 - Money / Issue 13

then this represents a bargain in the sense that investors would be paying a lower price for an otherwise same company. The volume of shares traded should give an indication of such a lack of interest or otherwise and for this reason, volume has been plotted against the MSE index in the chart below.

The chart above shows that volume of shares traded averaged approximately two million shares a month throughout the whole reference period. It seems therefore that the volume remained relatively constant whereas the MSE index plummeted by 60%.

an expensive currency and an ageing population and the apparent ‘saviour’ of the world, China, is in many ways dependent on demand from the likes of the United States and Europe to be able to grow. Although it has been widely said that Malta has been quite resilient to the global economic shocks of recent years (mortgage crisis, credit crisis and sovereign crisis), the local MSE index has indicated otherwise.

Conclusion The conclusion is that the MSE index does not seem to be under-priced and indeed, the reasons for its downfall are due to the decrease in earnings registered by the companies forming the same index and a lower GDP growth registered by the local economy.

The future may be brighter – however it is important to keep in mind the elevated tensions and uncharted economic territory that the global economy is currently facing. Apart from the eurozone crisis close to home, the world’s largest economies are also on the brink of a debt crisis. The United States economy is still struggling to recover, Japan is plagued by high debt,

Source: blackdigits.com.mt and the IMF Country Report No.12/105.

Promo

Taking note Malta joined the eurozone in 2008 but the convenience of the currency does not mean there are no headaches when traveling.

Bank of Valletta has some tips for travelers.

S

eventeen European countries and over 330 million people use the euro as their official currency – with several others also using it through special arrangements. The convenience is obvious: having the same currency has eliminated the need to change money whenever we travel within the eurozone, particularly when we go to more than one country. Gone are the days when we all had tins of spare change which we brought back from our travels and which accumulated over the years.

However, carrying bundles of cash is hardly the ideal situation: it is clearly risky to carry money that could be stolen or lost, leaving you stranded overseas. And even when you do not carry it around with you, it is still a headache to hide the money in your hotel room.

For years, credit cards have offered a logical solution.

Bank of Valletta’s credit cards are first and foremost a flexible payment tool accepted at over 30 million locations worldwide, and offer access to unsecured credit. But they also give you access to your own cash on a 24-hour basis and if you settle your credit balance within the grace period offered by the bank, you pay no extra interest or charges on your payment.

Moreover, credit cards also offer you additional protection if something you have bought is lost, damaged, or stolen. Your credit card

statement can vouch for the fact that you have made a purchase if the original receipt is lost or stolen, and if you are a 24x7 subscriber, you have the convenience of re-printing credit card statements at your finger tips.

Additionally, you can get protection insurance to safeguard any purchases made with a credit card.

Purchase Protection can protect eligible purchases against accidental damage or theft for a period of 90 days from the date of purchase, subject to the terms and conditions of the insurance policy.

Every €1 spent with a BOV Premium Visa Card (Flypass, Gold or Platinum) gives you one point in the BOV Loyalty Rewards Programme automatically and free of charge. These points can be redeemed against the annual card fee, AirMalta KMiles and now also as store credit at Debenhams (Malta) and La Vigna Wine and Gourmet Cellar within the Pavi Shopping Complex. This list of retail outlets is also set to grow longer to add to the benefits associated with BOV Premium Cards.

Bank of Valletta also offers American Express Cards to small businesses issued by American Express’ International Currency Card division. American Express Euro and US Dollar Cards facilitate the smooth flow of transactions and provide strong cashflow controls,

while also providing travel accident cover and the benefits of the American Express Membership Rewards® programme.

Furthermore, the Bank’s Cashlink VISA Debit Card is now also partnered with VISA, meaning that you can get the same convenience for electronic payments and cash withdrawals – all from your own current account.

Prepaid cards are payment cards that are pre-loaded with a fixed sum of money. When a prepaid card is used, the money is deducted from the amount originally loaded onto the card effectively rendering the card free of charge.

BOV MasterCard Prepaid Cards provide versatility, convenience and ease of use while shopping over the internet, settling bills online and paying for goods and services worldwide. It can also be used as a travel card. BOV MasterCard Prepaid Cards also offer the cardholder control, ease of use, confidentiality and security.

Should your credit or debit card be lost or stolen, you can also stop the card instantly through BOV’s internet banking, minimising the delay until the card is stopped and further transactions blocked, eliminating the need to contact the bank by telephone.

Only two out of every three Maltese travel within the eurozone. A considerable

number travel to the UK and although trips to long-haul destinations were down by 24% last year, that still left almost 34,000 who chose to try more exotic destinations.

This means they still need to get foreign currency before they leave.

Bank of Valletta provides currency exchange at competitive rates. The best option is ordering your foreign cash through the Bank’s internet banking platform.

You will then be advised when and where to pick up your cash and its extensive branch network means additional convenience.

Internet and mobile banking also keeps you in touch with your finances wherever you have access to the internet, or simply, a data connection to your mobile phone – not only are you able to monitor your accounts but you can still make any payments you require, just as you would if you were at home.

Visitors to Malta can avail themselves of the largest branch and ATM network on the island coupled with Bank of Valletta’s service that goes beyond the customary banking experience. Bank of Valletta aspires to exceed customer expectations by offering a trusted, truly genuine and caring service.

For more information about Bank of Valletta’s products and services visit www.bov. com or call BOV’s customer service centre on 2131 2020.

Money / Issue 13 - 43

Country Profile

A city of celebrations Australia weathered the global financial crisis and Sydney is a symbol of this success, says Vanessa Macdonald.

N

o city can afford to be complacent, even one that is doing as well as Sydney. And the city is doing well, on a number of counts.

Home to over four million people, its cultural diversity gives it a dynamism and appeal that has ranked it in 10th place worldwide when it comes to the quality of life, according to Mercer Human Resource Consulting – and that is out of a list of 221 cities.

But it is also a very successful business location, thanks in no small part to its excellent rail and road connections linked to its well-served sea and air hubs, which have made the city one of the main entry points for imports to Australia.

It also has a very welleducated population.

44 - Money / Issue 13

Approximately 43 per cent of Sydney’s population aged 15 or older has a post-school qualification – and well over half have tertiary education – the highest rate in Australia.

Other key industries are professional, scientific and technical services (9.3%) and wholesale trade (6.4%), the focus always being on value-added.

The 426,000 businesses based there cover a wide range of economic sectors, spread between manufacturing (10%) and services, the former accounting for half of the city’s employment.

Financial services (including insurance) account for over 20% of the city’s economy.

Sydney overtook Melbourne in the late 20th century as the corporate and financial capital and it now hosts the headquarters of the Australian Stock Exchange.

Of the 54 retail banks with operations in Australia, 44 are based in Sydney, and 17 of the top 20 global banks have operations in Sydney.

Its attraction as a place to do business has not gone unnoticed. It is estimated that around half of Australia’s top 500 companies and two–thirds of the regional headquarters of multinational corporations – 600 in all – are located in New South Wales, with the majority in Sydney.

All this activity has made Sydney the largest economy in Australia – one the size of Thailand’s – and it now accounts for around a third of Australia’s GDP. Such growth does not come without its downside. Sydney became a city stretching

70 kilometres from east to west, and 60 kilometres from north to south. One of the unavoidable consequences of being such a sought-after location has been housing prices. The Economist Intelligence Unit survey ranked Sydney as the 16th most expensive city in the world, and a few years ago, its housing average had the dubious accolade of being the highest in Australia.

But as other states in Australia flourish, Sydney is adamant that it will not get left behind, basking in its success. A Metropolitan Plan has been hammered out which is aimed at keeping its competitive edge and also at keeping it sustainable. The Plan estimates that by 2036, Sydney will need to generate and accommodate 760,000 additional jobs, with half

Vanessa Macdonald is a freelance journalist in her spare time, covering a wide range of lifestyle and economic issues.

Of the 54 retail banks with operations in Australia, 44 are 01 based in Sydney, and 17 of the top 20 global banks have operations in Sydney.

in Western Sydney, where much of the future population growth will be focused. And with the average household size falling, Sydney is going to need smaller, more affordable homes, 770,000 of them by 2036 – this represents a 46% increase on the city’s current 1.68 million homes.

The Metropolitan Plan 02 focuses on ensuring that there is enough room for this growth, both in terms of industrial land, commercial space and retail opportunities, not overlooking low-cost space for start-ups, the lifeblood of any economy.

These areas are, in turn, being provided with all-important infrastructure, as well as residential opportunities for the workforce, who in turn will require educational and medical facilities.

And because this activity will still be linked to the rest of this vast continent, the Plan envisages major upgrades to increase the scope of the rail freight network as well as of the ports that feed imports into Australia.

The target is ambitious: it wants to create centres so that everything is just one hour away for the population, whether that means getting to work, hospital, the theatre or the park. And if this seems like a pipe-dream, consider that in the past five years, the first version of the Metropolitan Plan succeeded in making sure that three out of every four Sydney residents could access a major centre, regional city or global Sydney within just 30 minutes by public transport.

Add to this tourism.

In 2010, 43% of all holiday visitors to Australia and 40% of the visiting friends and relatives landed in Sydney, and almost half of all business travellers.

A few years ago, a campaign was launched to promote Sydney as the City of Celebrations. The NSW government aimed the campaign at domestic visitors, but it seems this city has a lot more to celebrate than just its well-known postcard attractions.

The up markets in down under The Australian Merino wool industry is riding the wave of China’s luxury market and a global demand for natural fibres. Australian Merino makes up a quarter of wool apparel globally – the industry, supported by 43,000 wool growers, is worth €1.9 billion and produces 359.7 million kilos of wool for export a year.

SBS broadcasts content in more than 60 languages to Australia’s multicultural population. It also produces 27 foreign language TV news programmes each week.

Mining is a primary industry in Australia and one of the largest contributors to the economy. Western Australia’s mining industry is worth $56.9 billion in value added. This year, Australia’s mining industry is expected to generate $203.9 billion.

Money / Issue 13 - 45

HELPS

ELIMINATE ODOUR

Trade Enquiries VJ Salomone (Marketing) tel: 8007 2387

VS. JUST COVERING IT

ADVANCED STICK & SPRAY DEODORANT

Cars

On the road If you’re planning to spend your holidays travelling overland, these cars should be on your map. Money clocks up the miles.

Starting price €40,995 for XTR 2.0 AWD model.

Engines available 2.0 V-Matic (Co2 177, consumption 37.2 mpg, 158bhp).

2.2 D-4D 150 (Co2 159, consumption 47.1 mpg, 150bhp).

2.2 D-CAT 150 (Co2 186 consumption 39.8 mpg, 150bhp).

Highlights •A ctive Torque Control AWD system automatically transfers torque between front and rear wheels for optimum performance in all conditions.

Toyota RAV4 XTR The Toyota RAV4 is the world’s most successful compact SUV and is built on an impressive heritage. The original model was a true pioneer offering streetsmart design, versatility and sporty handling in a compact package. The latest generation builds on all these core strengths but with even more all round sophistication and practicality.

With this version of the elegantly sculpted RAV4, you get the additional benefit of intelligent All-Wheel Drive.

You’ll be seated in comfort, too, thanks to perforated leather/alcantara seats, heated front seats and electric adjustment for the driver. As for engines, the car features either the 2.2-litre D-4D diesel with a six-speed manual or automatic gearbox and the 2.0-litre Valvematic petrol engine featuring the Multidrive S transmission. This model is also the first in its in its class to achieve sub-160g/km CO2 emissions.

Intelligent All Wheel Drive allows you the confidence to stay in control no matter what the conditions. This system provides ongoing feedback on the road conditions and quickly reacts if necessary to unify the Active Torque Control 4WD, Vehicle Stability Control and electric power steering in a single, highly responsive unit.

•F irst-in-segment Integrated Active Drive System.

•H ill-start Assist Control fitted as standard, plus Downhill Assist Control on models with automatic transmission.

Safety takes top-level priority in the RAV4. As a car built to provide flexibility and comfort for all the family, it offers comprehensive, all-round protection.

The RAV4 is also designed with a clear focus on pedestrian safety with special energy-absorbing zones. The RAV4 is fitted with seven airbags as standard, including dual-stage and front passenger airbags, front side airbags, curtain shield airbags across front and rear side windows and a driver’s knee airbag. A cut-off switch allows you to deactivate the front-passenger airbag when a child seat is being used.

The front seats also incorporate second-generation Whiplash Injury Lessening concept technology, with headrests that move forward to reduce the risk of neck injury when there’s a rear collision.

The Toyota RAV4 is ideal for overland as it’s a powerful All Wheel Drive vehicle, has Toyota’s quality built and also very spacious for five passengers and their respective luggage.

•L uggage compartment: length: 800 / width 410 / height 995

The Toyota RAV4 XTR also includes: • 17 inch alloy wheels • Bluetooth connectivity •R adio with AUX-in, MP3 reader, six-disc CD changer, six-speaker system •L eather steering wheel with audio and Bluetooth controls •E lectrically power assisted steering •T ilt and telescopic adjustable steering wheel • Dual-zone climate control • Electrically adjustable driver’s seat • Heated driver and passenger seat • Heated electric retractable mirrors • Electro chromatic rear-view mirrors • Dusk sensing headlights • Rain sensing wipers • Rear privacy glass

Money / Issue 13 - 47

Starting price €26,400 or €299 per month calculated at 25% deposit, 5.5% interest on seven years through Gasan Enterprises financing.

Engines available .0l petrol 2WD 2 (manual or automatic both available).

2.2l diesel 2WD or AWD (manual or automatic both available).

Highlights • Skyactiv technology combines efficiency and performance like never before.

• Consumption of 61.4 mpg (or 4.6 L per 100Km) and emissions of 119g/Km on the 2.2 Diesel Skyactiv.

These are class leading figures.

• The Karakuri 40/20/40 flatfolding system comes as standard.

• 503 litres luggage space, the largest in its class.

The Mazda CX-5 also includes: • Privacy glass • Keyless start • 7-inch colour touch TFT screen • Radio/CD/MP3 player with sixspeaker system • Bluetooth • Front and rear parking sensors with on • Board display • Central locking • Front and rear electric windows • Electric folding mirrors • ABS • EBD • Fog lamps • Dual zone climate control

Mazda CX-5 The new Mazda CX-5 compact SUV combines groundbreaking technology with exceptional design, flowing aesthetics with sporty fun dynamic driving, and a commitment to lower fuel consumption and C02 emissions without compromising performance. That’s the very spirit of defying convention.

The CX-5’s combination of space, function and drivability make it unique within and beyond its class and budget. This makes it an exceptional choice for overland travel. It is unbeatable in storage space, economy and accessories to ensure comfort and practicality. It also provides extensive safety features as standard. All this, coupled with Mazda’s legendary reliability at a below average price, make it an all round winner for overland travel and more.

Embodying Mazda’s new design language, KODO - Soul of Motion, the CX-5 is inspired by the power and beauty that can be seen when an animal such as a cheetah changes direction while moving. The CX-5’s well-planted looks begin with the strong presence of the front. The five-point grille expresses strength and depth while the lower grille contributes to the CX-5’s solid posture. Front fog lights are standard across the range while sport models include Bi-Xenon headlights featuring active front lighting which swivel to illuminate the area on the inside of a bend not covered by the high and low beams.

The sporty rear lights complement the sleek front headlights which reveal a round light and wing-like motif by day, creating a unique cat-inspired illumination at night.

On the inside, the cockpit environment offers a driving position with excellent road visibility, while every point of contact between you and the car is optimised to fall easily to hand. Sporty seats offer ultimate comfort and good lumbar adjustment, relieving fatigue while arresting lower body movement during cornering. Luxury seats come as standard and feature premium cloth on SE-L models and leather on Sport models, along with high quality trim. The Mazda CX-5 offers comfort for up to five people and a refined driving environment.

The CX-5 is designed to help drivers avoid accidents and, if one happens, reduce the severity as much as possible. The CX-5 comes equipped with Mazda’s new Smart City Brake Support as standard, which helps minimise the chance of rear-end collisions, as well as state-of-the-art passive safety features. These include a lightweight yet highlyrigid Skyactiv-body and various impact-absorbing body structure innovations. Safety features also include six airbags and seatbelt pre-tensioners.

The CX-5 is officially one of the safest cars in the world after receiving five-stars – the highest possible safety rating – from Euro NCAP.

48 - Money / Issue 13

Audi Q3 The Audi Q3 is the premium SUV in the compact class. It is sporty, efficient and versatile – an urban vehicle that is equally at home on or off the road and which is ideal for overland driving.

Every aspect of the Q3 showcases Audi technology – the body, drivetrain, chassis and assistance and multimedia systems.

Many of these solutions come directly from the luxury class.

The Q3 is immediately recognisable as the youngest member of the Audi family.

The coupé-like lines are an expression of its sporty character. Sharp edges frame elegantly arched sheet metal surfaces, and distinctive lights accentuate front and rear.

The wedge-shaped headlights are available as a xenon plus version including LED daytime running lights.

The low roofline and flat D-pillars underscore the dynamics of the Audi Q3.

Add-on parts are available in a number of variants – customers can choose between black, anthracite or the body colour. There is also a choice of two exterior packages.

The base version of the Audi Q3 weighs just 1,445kg. Its rigid, safe and quiet occupant cell integrates a number of ultra high-strength steels and both engine hood and tailgate are made of aluminium. As is typical of the Q models from Audi, the undivided taillights are integrated into the tailgate, which wraps around the pillars.

The coefficient of drag is a low 0.32.

The Audi Q3 offers ample room for all five passengers and sets new standards for ergonomics and workmanship. A wide variety of materials and colours for the interior offers customers countless possibilities for expressing their own personal style. The wrap-around – a large

arc extending from one front door to the other – is a design feature borrowed from the large Audi model series.

The luggage compartment has a capacity of 460 litres, which can be increased to 1,365 litres by folding down the split rear seat backs. A roof rail is standard.

Many useful options, including a luggage compartment package and a load-through hatch, make the Q3 even more enjoyable in everyday use.

Starting price

The engine lineup for the Audi Q3 offers the choice of two TDI and two TFSI engines. The four-cylinder engines combine direct injection with turbocharging and a start-stop system.

These engines are as efficient as they are powerful – the Q3 2.0 TDI with 103 kW (140 hp) and front-wheel drive averages 5.2 litres of fuel per 100 kilometres.

€39,800 for 2.0 TDI with 103 kW (140 hp) entry model.

Audi pairs all engines with an output from 125 kW (170 hp) with quattro permanent all-wheel drive, which uses a hydraulic multiplate clutch. The seven-speed S tronic comes standard with the most powerful TDI and TFSI engines. The dual-clutch transmission showcases an innovation that enhances efficiency even further. When coasting, it allows the Q3 to free-wheel when the efficiency mode of Audi drive select is active.

Highlights

The Q3 chassis – featuring a four-link rear suspension, electromechanical power steering and wheels measuring between 16 and 19 inches in diameter – is the fruit of great design labor. An electromechanical parking brake and hill hold assist are standard, with hill-descent assist to be available later.

The Audi Q3 also includes:

Engines available 2.0 TFSI quattro with 125 kW (170 hp) 2.0 TFSI quattro with 155 kW (211 hp) 2.0 TDI with 103 kW (140 hp) 2.0 TDI quattro with 130 kW (177 hp)

Park assist system which automatically steers the car into a parking space.

Audi side assist uses radar to facilitate changing lanes.

Audi active lane assist helps to maintain the lane.

Speed limit display recognises important traffic signs.

•A daptive light system for the xenon plus headlights • Panoramic glass roof • LED interior lighting package • MMI navigation plus system •B ose surround system delivering 465 watts to 14 speakers

Audi drive select enables the driver to adjust various technology modules, including the optional suspension with active damper control, in four stages to suit individual driving style.

Money / Issue 13 - 49

Photography: Kris Micallef, www.krismicallef.com Stylist / Creative Director: Luke Engerer, www.lukeengerer.com Model: Kristian from www.models.com.mt Type: Hello Jon, www.hellojon.com

Esprit shirt, €49.95 Esprit blazer, €89.95 Opposite French Connection hat, €31.00 French Connection blazer, €159.00 French Connection shirt, €67.00 French Connection bermudas, €49.00

French Connection shirt, €73.00 Hugo Boss blazer, €368.00 French Connection bermudas, €49.00 Ecco shoes, €159.90

Tom Tailor shirt, €35.95 Mexx blazer, €139.00 Esprit trousers, €79.95 Moshulu shoes from King Shoe Shop, €89.90

Calvin Klein blazer, €327.00 French Connection shirt, €61.00 French Connection bermudas, €49.00 Ecco shoes, €134.90

Mexx shirt, €49.95 Esprit blazer, €189.95 Mexx bermudas, €55.00 Mexx shoes, €75.00

Fashion

TRAVEL GEAR Money dresses up for a spot of jet setting.

Leather man bag by Carpisa, €79.90

Snake effect patent leather loafers by Marc Jacobs. €248 (sale price) from www.net-a-porter.com

56 - Money / Issue 13

Candy stripe shirt by Paul Smith. €102 from www.paulsmith.co.uk

Flip flops by Mexx, €42.95

Leather wallet by Carpisa, €29.90

Shoes by Mexx. €89.95

Leather belt by Carpisa, €19.90

Green shorts by Mexx, €55.00

Hawaiian print t-shirt by Valentino. €207 from www.matchesfashion.com

Cheslyn shorts by Acne. €93 from www.matchesfashion.com

Money / Issue 13 - 57

Gadgets

Boarding passes Money flies in first class with these travel essentials.

Perfect credentials Not even the most dictatorial of countries will refuse you entry if you present your passport in this cover. Smythson, the ultimate purveyor of luxury goods since 1887, will keep your passport safe in these brightly-coloured passport covers made of soft calf-leather skin. You can even personalise the front cover.

58 - Money / Issue 13

Time zone

Step on the gas

The Mille Miglia Lady

by Chopard pays tribute to the legendary Mille Miglia car rally.

Immaculate in white, the Mille Miglia Lady is a precious time-keeper featuring the famous 1960s Dunlop Racing tyre-tread motif, mother-of-pearl dial and diamond-set bezel.

Tod’s driving shoe is an iconic design that combines classic Italian style with practicality, comfort and handcrafted luxury.

Perfect for a driving holiday, especially this collaboration with Ferrari that comes in grainy, supple leather and the prancing horse.

Business class The Falco business carrier by Bally is your perfect business solution – this calfleather carrier organises all your business essentials in one bag.

Neck and neck For those chilly evenings in the African savanna, give your neck a warm feeling with an Hermés scarf.

Carry on Back in 1921, Louis Vuitton ad-men came up with the perfect tagline – “Show me your luggage and I will tell you who you are!” Well, here’s our luggage.

On course The hybrid barefoot golf shoes by Vivobarefoot give you the feeling of being barefoot while helping you improve your balance and grip when on the green. Hole in one.

Smooth operator The Slimfit Traveller collection by Thomas Pink shirt-makers of Jermyn Street, London is made from 100 per cent, two-fold cotton which has been treated to limit creasing and facilitate maintenance. Travel in smooth style.

Money / Issue 13 - 59

Travel

Sicily turns chic For Mona Farrugia, Sicily presents a tasty offer you cannot refuse.

U

ntil some years ago, for the Maltese traveller, going to Sicily was a dead giveaway for social class. Those from the upper echelons shopped in Regent Street in London.

Those who were on a budget went to Catania’s market.

These days, although there still exist the shocking quantity of those who brave it across the water to return with huge bags of tat from mega motorway markets (if you’re brave enough, stand outside the terminal on a dark night and you will see alighting carloads of anything from toilet paper to packs of mineral water), but slowly over the past year or two, the weekend foodies have taken over the channel.

An excellent contributor to this state of affairs has been the spanking new addition to the Virtu fleet, a huge catamaran which manages to glide over to our cousin island in an hour and a half. Whereas before, a day or two of sheer consumption normally meant leaving all in vomit bags (sorry!) on the way back and alighting a darker shade of green, the Jean de la Valette gets us to culinary nirvana before you can say ‘impanatigghi’ (tiny sweet pies made from meat and raw chocolate, a Modica speciality).

It has also made overseas drivers out of most of us. I’m quite a wuss when it comes to braving motorways but this year, for the first time ever I drove up

without a passenger (or a driver) and, accompanied by a harried Tom Tom which is constantly trying to figure out the most recent road changes, made it from A to Z without much bother. Except for that time when I realised I was on the other side of the road.

But this time, I wanted to brave further. Having heard so much from other Maltese about Sciacca’s seafood, I booked a room at the Verdura resort, which is operated by the Rocco Forte group. The trip from Pozzallo takes around four and a half hours so I stopped for a good coffee from the town centre.

Until 11a.m. nobody balks too much if you have a cappuccino. Then I set off.

Two and a half hours of motorway, through some pretty dodgy villages where it seemed that most shops were betting ones and half the population was unemployed, I arrived in Licata, where the two Michelin star La Madia is hidden in the town centre. It has no views and is a pretty boring dining room overall, dying for a designer to get working on it. But the food is where the design is: nothing short of art, on the plate and on the palate.

Chef Pino Cuttaia introduced himself – “There are Cutajars in Malta, no?”

He is considered a culinary genius around these parts and much further afield. With a good chef, you do not want to be choosing from a menu, no matter how well planned, so I left it up to him. My lunch turned into a wave of seafood excellence, mostly in the shapes of the kind of thing you cannot make at home. Prawns and alici which looked like paintings and a foam of mozzarella, tomato iced concentrate and basil essence (Cuttaia’s version of the caprese) which looked like a mozzarella ball but exploded in my mouth. The cost is high, higher than two Michelin star restaurants in Paris, putting paid to the ‘Sicilian food is so cheap – why can’t we have the same prices in Malta?’ dictum.

But it’s worth every euro cent.

Back in the car, slightly tipsy, I make it up the smooth roads to the Verdura Golf & Spa resort, which at first glance looks harsh, the architecture stern and forbidding. Inside, looking out to the beautiful sea and Sciacca’s twinkling lights, I knew I had made the right choice.

The rooms are very spacious, chicly done up, the bathrooms enormous and the

Money / Issue 13 - 61

Travel

toiletries by Ortigia, a Sicilian high-end brand. I’m tired of booking uncomfortable agriturismi in Sicily which sometimes don’t even serve any decent food and require a 10-minute drive at night to the nearest shabby restaurant. The Verdura is, doubtless, one of the best places to stay in the whole west of the island.

Service throughout was top-notch. On my first night I was attacked by insects which decided to make a home out of my Frette-covered bed – the silver lining was that this led me to discover why there were electronically-controlled floor to ceiling screens on the doors to the terrace.

After a minute of calling reception, they sent a drove of housekeeping staff who moved all my belongongs to the insectfree room next door.

It is useless telling you not to bother going to Sciacca centre to eat if you are at Verdura, as you most probably will.

Really, who wants to eat at the hotel all the time especially in a land renowned for its choice of raw to cooked? Yet I was shocked at the lack of good seafood restaurants at Sciacca, the nonchalant service at the one I finally chose, and the food so dull I cannot remember if I had pasta, fish or anything else.

In the evening I decided to brave it at Verdura. Would my experience be worth the ‘not driving to’?

Absolutely. The Liola’, situated at the end of the acres of green over the clifftop, offered a terrific experience – the views were unparalleled, the service was friendly and courteous. And although you could not call the experience cheap by any means, it was excellent value for money. Plus you don’t have to drive back – somebody will drop you off at your villa in a golf buggy. Obviously.

Verdura is a golf resort but I refrained from grabbing the opportunity to tee on any level except if it came in pots and with an ‘a’ instead of an ‘e’. I spent a few delicious hours sitting at the multitemperature spa open-air pools, dipping in from 27C to a death-defying 3C which would be, I suppose, wonderful when the ambience temperature is 45C but shocked me to the core in the lovely 25C spring sunshine. You can always tell the quality of a resort from its loungers and these are

62 - Money / Issue 13

huge and come with mattresses and large cushions. Hint to Verdura: you should have staff walking around offering cocktails.

After checkout, I set off for the Etna hills where the Tenuta San Michele – the seat of the noble Murgo family and now a huge vineyard and agriturismo, purveyors of the finest champagne (or rather, Brut, as it is not made in Champagne) in Sicily – had a room waiting for me. Breakfast is very basic but supper is always decent and genuine.

The views over the hills are wonderful to wake up to. The air you’d expect to be packed with volcanic ash is strangely clean and there is no noise except for, possibly, machinery in the vineyards.

There is ample parking and the nearest villages have a few restaurants, mostly genuine rather than touristy.

Trips to Sicily, in my view, are not complete without a jaunt into Ragusa Ibla, the hilltop baroque town which does everything small but perfectly formed – I set off from the outskirts of Catania, straight past MisterBianco (it’s a business town within a city, not a supermarket, as I once imagined) and down to the pretty parts of southern Sicily.

If it’s not Monday you can do lunch at the two-star Michelin Il Duomo, right behind the duomo. Otherwise, dip into Gelati di Vini for some Nero d’Avola ice cream and quality wines to bring back.

Meander around the streets. Then drive down to Modica, for, if you will, some shopping.

Sicily’s motorways are full of huge covered markets selling the kind of things that will eventually end up in a landfill – but Modica has a few lovely outlets selling delicious cannoli, raw cioccolata Modicana and darkly handsome Moak coffee.

On your way back to the catamaran in Pozzallo the choice for food and drink is extremely dull. Yet one enoteca stands out for its excellent choice of wines (many by the glass), beers and artisanal liqueurs.

It’s called Sapori DOC and is only open on Thursday, Friday and Saturday from 7.30p.m. so make sure you book and enjoy their selection of seafood carpacci, cheeses and salami from Ragusa.

On course Make sure your driving licence is up to date. Some insurance companies will cover you without extra charge when you drive over: just advise them the car will be out of the country.

To get to the Tenuta San Michele, drive to Santa Venerina, then on the way up, stop by the side of the road and do an extreme u-turn to the right up a very sharp hill.

For the car, always dress comfortably and for long journeys. If you are a passenger, take a large, soft pashmina and a cushion no matter how comfortable the car. In some areas of the motorway, prepare for some pretty crazy driving but otherwise, driving in Sicily is easier than driving in Malta and less stressful.

Sapori DOC Enoteca & Wine Bar: T: 0039 4010500 E: info@saporidoc.com Chef Pino Cuttaia cooks at: www.ristorantelamadia.it Verdura Golf & Spa Resort: www.verduraresort.com Tenuta San Michele: www.tenutasanmichele.org Food and travel writer Mona Farrugia edits www.planetmona.com and runs Angelica in Valletta. www.angelicamalta.com

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64 - Money / Issue 13

• Salami Milano • French cooked ham • Parmigiano Reggiano • Swiss ementhal

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The Zammeats delicatessen stocks the finest foods, including quality hams, salamis, foie gras, compotes and the best cheese selection on the island.

Money / Issue 13 - 65

The Bluesman’s blog The Bluesman is a Maltese sound engineer working in New York. downturn has led to an increase of these street people and a wider variety of the eye-catching ploys used.

Children, more women, and what I can only describe as public sobbing. Unemployed, unemployable, homeless and some what are referred to as MDP on police radio – mentally disturbed person – turned out of emergency rooms after a three day stabilisation stay because there’s no money to find a place for them long-term.

L

iving in New York City, like any other big city, you get used to dealing with panhandlers and the sight of people in the streets, at a less fortunate time in their lives. In time most people become either so jaded that they walk past with nary an acknowledgement or else develop a feel for the genuineness or otherwise of the plight of these persons.

I am particularly inured to those who board the subway rattling a McDonalds cup.

They may start their spiel with a loud “Excuse the interruption” and go on to state their case. A few coins, they say, so that they might be able to have something to eat or pay for a flop house or that they have the promise of help but not until next week.

Some feign some sort of handicap, others drag a poor child with them. I can tell when the conductor has

66 - Money / Issue 13

spotted them because the recorded message about the illegality of begging on the subway is played a couple of times.

However, I make an exception to those who offer some sort of musical entertainment. A Doo Wop trio, a Mexican Mariachi quartet or a solo voice. I was once regaled by a version of Nessun’ Dorma in what sounded like Russian. It is possible to apply for, audition and obtain, a license to play on the platforms but to drag a double bass from car to car requires determination which I feel deserves rewarding.

In the streets, however, I’m a lot less tolerant. I mean, they’re not even trying – just hanging or sitting on the sidewalk with a handwritten sign, usually including a conscience nudging ‘God bless.’ Unfortunately the benignly named economic

That’s not to say that I’m not a sympathetic person and I will not deny that after a couple of unexpected setbacks in life one can slip into a spiral. The thing is, will the realisation of the situation hit in time to do something about it?

There was the time I was on my way to my CPA before the April 15 tax filing deadline and hurrying down Madison Avenue. A well-dressed young woman with a child in a stroller half made a gesture to attract my attention as she mumbled something. Normally I would have continued on but something in her eyes stopped me. I sensed a sincerity there. I stopped and asked her what was wrong.

Husband gone bad, no money to support child. I gave her some money and the name of a one-stop assistance bureau where she could get legal and material help. The fish and the fishing lesson, I hoped.

Employment, the economy and health – the issues that

are going to dominate the next presidential elections.

Unlikely as it may seem on the surface, I think the President has made great inroads towards the solutions, and the results are slowly surfacing – the Republican posturing is being seen for what it is and I would lay odds that Obama will be re-elected.

Sometimes I wonder what visitors to this great Metropolis make of the visible beggars on the sidewalks, church steps, subway platforms and trains. After all, this is a centre of commerce and banking, prime real estate, home to movie stars and celebs, location for movies and TV shows – one of the hubs around which people chasing the American Dream circulate. Where you may well bump into Robert De Niro in Tribeca or who knows which star of the moment outside any of the Network Studios. Sharp contrasts as they meander through a stridently merchandised Canal St, the clean lines of the Apple Store flagship location or, further up, Museum Mile. The City must feel somewhat overwhelming as they stand on corners looking around and up, like the group on 57th and 5th Avenue I encountered blocking my path back to the sidewalk at the pedestrian crossing. I growled, “What, you gonna just stand there?” as I made my way through them. “We’re visitors from Sweden,” a blond said by way of apology and explanation.

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