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Newspaper Post

VOLUME III, NO 12 - JUNE / JULY 2015

The publication of the Malta Hotels and Restaurants Association

Martin van Kan, InterContinental Malta Area GM on

What the luxury trail is all about


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in this Issue

The Mediterranean - 09

Experiential Travel - 13

Onwards and upwards in the luxury trail - 22

The man behind Sterling - 74

05 The MHRA Sponsors 07 The editor’s letter

60 The dark side of tourism 65 Heaven can definitely wait

Inside quality

09 From the MHRA President The Mediterranean

13 From the MHRA CEO Experiental Travel

16 MHRA Associates Members List 19 The Council Members in depth Joseph Restall

22 Martin van Kan Onwards and upwards in the luxury trail

32 Sustainable tourism Moving from words to action

37 Hotel Juliani The ins and outs of the rankings game

45 Language proficiency The European Commission fosters multilingualism

55 Casa Ellul

A place worthy of any Grandmaster

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Marvin Gauci, chef-visionnaire at C&B

68 Destinations of excellence

Promoting sustainable tourism development

71 Changes in hospitality financial reporting The need to re-evaluate policies and practices

74 The man behind Sterling The man from Valletta

79 Low-calorie products 80 A new concept of tourism

the southern villages’ experience

85 Financing opportunities

Different sources necessitate different considerations

89 Ten year analysis

Deloitte looks beyond the five-year horizon

95 IT review

The MICROS Enterprise Solution Suite

100 The Insider Directory 103 The Insider Entertainment & Culture Venues

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Crisis

Recovery

Community Based Tours - 80

Growth

a place worthy of any Grandmaster - 55 €15,045

€11,156 €9,611

€8,871 €7,514 €6,479

€5,443

Ten year analysis - 89

IT Review: The MICROS Enterprise Solutions Suite - 95

€3,711 €2,278

€2,133

€2,243

€1,126

June / July 2015

2008

5-star

2009

2010

Vol III Issue 12

2011

2012

Cover: 4-star 3-star Martin van Kan - page 22 Photographer: Sean Mallia Malta Hotels & Restaurants Association Nr. 2, Gallina Street, Kappara San Gwann, SGN 4111, Malta Tel: (00356) 21318133/4 Fax: (00356) 21336477 Email: mhra@mhra.org.mt Web: www.mhra.org.mt

2013

2014

Published by

a member of

Publisher Jason Attard jason@i-mng.com Editor Victor Calleja vc@i-mng.com

iMNG Ltd Ajiree Court, 04, Testaferrata Street, Ta’ Xbiex XBX1403, Malta Tel: (00356) 2010 7775 Email: info@i-mng.com

Sales Manager Marian Poucher marian@i-mng.com Layout & Design iMNG Ltd

© All rights reserved by the Publisher. The Publisher’s written consent must be obtained before any part of this publication may be reproduced in any form or by any means whatsoever. Opinions expressed are not necessarily those of the editor or publisher. Whilst every care has been taken in compiling contents and in safeguarding against plagiarism, the publisher and/or editor cannot be held responsible for errors or omissions. You are reminded of your right to refuse receipt of this publication and/or our other products or services by sending such requests in writing to iMNG Ltd, signed by the person refusing receipt.

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the MHRA Sponsors

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he President and Council of the Malta Hotels & Restaurants Association, on behalf of the members, would like to thank the Sponsors for their support and commitment towards the MHRA. The long-term agreement reached with the sponsors has enabled the MHRA to take a more long-term perspective to its operations.

Platinum Sponsors:

Corporate Sponsors:

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Editor’s Letter Inside quality

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hankfully, life is full of contradictions, opposing views, contrasts. Imagine a world where we were all super-organised or all blonde or all rich or all inclined to live on hills. Life would be robotic with its lack of diversity. Diversity has always been a motor of evolution. Trying hard to achieve what others have achieved before us prods us on to bigger goals, higher peaks. Life is all about change and they who do not change stagnate, go mouldy and die. Unfortunately, sometimes diversity, because of life’s diktats of inequality, causes people, or even whole swathes of men and women, to suffer. It took an age and immeasurable suffering for slavery to be abolished; for men and women treated worse than cattle to be liberated. It took even longer for women—who make up at least half the world’s population—to come close to equality. The process is long but the process makes life vibrant, and humanity more interesting. Because of oppression we understand and cherish freedom from oppression more.

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Tourism too has its strange and evolving transformations. The change from mass tourism to more sophisticated travelling was—or rather is—one long process. We have still hardly seen the end of mass tourism but the way forward is surely more individualised, more direct contact with what the traveller wants. The words luxury and quality have always been bandied about and their real and intrinsic meaning stretched to unbelievable lengths. Sometimes this stretching is caused more by bandying clichés about rather than by deceit because quality lies in the eyes of the beholder. Whatever the discussion will bring about and whatever goals we set ourselves Insider hails and applauds any move to raise our tourism, and especially our hospitality market a rung or two higher in service and quality. The more we push the bar of what to expect from our operators the more quality tourists will seek our destination. And the higher the bar the more we will have to ensure we offer a top service in our beloved but sometimes shabby product Malta. Contrasts of style and of size are what make us so dazzlingly interesting.

Valletta today offers a new experience in individual accommodation and high-end dining. While a few years ago Valletta was discarded as poor, tired and not revivable, it is setting an interesting standard in boutique accommodation. Small, individual hotels with abundant quaintness and artistic flair, like Casa Ellul, are a welcome arrival in the process of change in Malta. Insider enters the old house transformed into a guest-house for discerning travellers. From Valletta to St Julian’s and from a small “pension” to a mega-hotel like the Intercontinental Malta. In this issue we also meet the Area GM of this hotel, smack in the heart not of culture and heritage but of entertainment. Here too we find that hospitality is changing with a new emphasis on the individual, local taste and service of a higher degree. The hotel has embarked on a new phase in its evolution and is in the process of developing suites that go beyond standard benchmarks. Luxury is truly coming to the island. Malta certainly is changing and Insider gives you a personal view of accommodation with a new twist. Enjoy it all, and enjoy the new taste of Malta. Victor Calleja

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FOR SOME, THE NEED TO GROW JUST KEEPS GROWING. €75,000,000 MALTA TRADE FOR GROWTH FUND Successful businesses aren’t satisfied by the here and now. They prefer to ask ‘Where next?’ With nearly 150 years of global trade experience HSBC has long believed in businesses willing to push the boundaries and cross borders. That is why HSBC has introduced a €75 million Malta Trade for Growth Fund to help Maltese businesses to trade internationally. As your business seeks growth opportunities the Malta Trade for Growth Fund can help you make it possible. See how we can help your business grow. www.business.hsbc.com.mt/75million

Approved and issued by HSBC Bank Malta p.l.c. 116, Archbishop Street, Valletta VLT1444 which is regulated by the Malta Financial Services Authority.


From the MHRA President

Tony Zahra, Acting President

The Mediterranean A possible first step towards a solution

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he Mediterranean, once the cradle of civilization, has again hit the international headlines as a result of wrong decisions taken by world leaders that ultimately have turned the suffering of neighbouring countries into one tragedy after the other. And what is mostly disconcerting is the fact that the end to all of this is nowhere in sight. In the face of these developments many have passionately argued for ways to stop tragedies from becoming the order of the day across the Mediterranean and accordingly presented a myriad of strategies for consideration by the international community. But many lost the

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wood for the trees in their attempts to find a quick fix as indeed the tragedies here do not revolve just ar ound illegal immigration. Key matters include: the situations being experienced by many who are left unemployed, including youths, some of whom are so disenchanted that they are turning to the gun for solutions; and the loss of dignity experienced by all those who, as a result of social and economic misery, have ended up victims of the darker side of society and the economy. A lot has been said, but little done and, while it is important to address emergencies, none seem to have identified a long-term sustainable solution for the

Mediterranean. Indeed it is recognised by all that this challenge is definitely not an easy one. The Mediterranean is one of the rare borders in the world that separates two adjacent areas with opposite demographic characteristics and contrasted levels of development. This region, through its diversity, is representative of the rest of the planet and is thus a life-size laboratory for the World Vision exercise. In the meantime Mediterranean countries are undergoing intensive demographic, social, cultural, political, economic and environmental changes, giving rise to various questions: Where will these changes lead? What lies ahead for the Mediterranean countries? How will

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they confront the ever-increasing difficulties being encountered? The good news is that the Mediterranean has a great story to share with the rest of the world, a story which has placed the Mediterranean region at the top of the preference list of yesterday’s and, increasingly, today’s and tomorrow’s travellers. And this we believe could be the Mediterranean solution: Tourism. Tourism is a powerful motor that gears economies, sustains environmental conservation, and leverages development of societies. Tourism eradicates instability and exterminates warlords and powermongers, because tourism feeds the many as it creates opportunities of hope for a better future. The foundations for tourism are already strong across the Mediterranean region, thus it presents itself as a feasible and pertinent long-term solution. And, if managed right, tourism is not only sustainable but also easily adaptable and flexible to specific economic and social realities. The way to achieve common quality tourism goals all across the Mediterranean region is still a long way

Tourism is a powerful motor that gears economies, sustains environmental conservation, and leverages development of societies. WWW.THE-INSIDER.BIZ

away but certainly not impossible. For thousands of years, there have been strong bonds between the peoples of the Mediterranean, owing to the geography and history linked by a common sea. Despite political, economic, and cultural differences, we now need to rediscover the fact that our destiny lies in solidarity and, in particular, that joint action is imperative to improve the environment in which we live, through tourism. A quick look at European history reveals that the principle being proposed here is very similar to the origins of the precursor of the European Union, the European Coal and Steel Community - an economic union created in 1956 that provided for the pooling of coal, iron, and steel production in Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. Indeed coal, iron and steel were key resources at the time in Europe and so presented themselves as the right basis for common interest that would lead to the achievement of a common goal: the attainment of economic growth and social development through stability and peace in the region. In our case and in our times, tourism is definitely that economic and social powerhouse that is capable not only of circumventing differences amongst key players in the Mediterranean region but significantly of emphasising the potential of strength through diversity. The key word here is synergy. And in all of this we believe Malta has a key role to play. Why us? Because: Malta’s economy depends on tourism thus is a model

of how economic and social growth can be fuelled despite limited resources. Malta is too small to be considered a political or economic threat to any of its neighbouring Mediterranean countries, hence the right driver for such an initiative; Malta is a member of the European Union, therefore it has an important say in this critical economic bloc for the Mediterranean. And Malta, despite its size, has the right passion and drive to act as a catalyst for the realisation of this vision. Two years ago the MHRA started to spearhead an annual Mediterranean Tourism Forum, a conference which aims to bring together stakeholders in the tourism sector with a specific interest in the Mediterranean region. This initiative was an immediate success and the idea of tourism as the Mediterranean solution has started to spread like fire across various countries in the Mediterranean. To push this agenda further and stronger MHRA has now set up the Mediterranean Tourism Foundation to take it forward to the next level. The third annual Mediterranean Tourism Forum will be held in Malta in December 2015 and we are expecting this event to grow further as delegations from a good number of countries are expected. We also expect entrepreneurs, NGO’s and representatives of governments to be attending. We hope that this seed will grow in the years to come to bring the diverse countries together in peace for the benefit of all the people of the countries bordering this Mare Nostrum.

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From the MHRA CEO

Andrew Agius Muscat

Experiential Travel

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ollowing the publication of the revised Tourism Policy earlier this year and the announcement of plans by Corinthia Group to develop a six-star hotel in St Julian’s, the issue of what we mean by quality tourism became the subject of interesting discussions. MHRA believes that our tourism sector needs to further embrace a quality service culture at all levels which are currently being offered, as only in this way can our market remain competitive from a global perspective. Today tourists rarely travel to see a destination or a particular landmark (as this is easily accessible through the internet) but rather they travel to experience a destination. Linked to this important development the debate also led to different views on the potential of the luxury leisure market in Malta.

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A quick look at what constitutes the luxury market reveals that over the past several years, and particularly after the 2008 global recession, there has been a notable shift in the preferences of buyers of luxury goods and services. Gone are the days of opulent excess and research has repeatedly shown “a shifting tendency among the affluent to seek and discover authentic experiences as opposed to purchasing and owning physical luxury items” (2014 MasterCard Affluent Report). For instance, over 72% of respondents in a 2013 American Express survey said they would rather spend money on experiences than material goods. Moreover, luxury consumers desire bespoke and personalised products and services, and nowhere is this truer than in luxury travel.

In 2013, the Boston Consulting Group estimated the luxury leisure travel market’s overall value at $460 billion, and it has been growing by an average of 11% each year. According to the 2011 Howarth HTL report on the Future of Luxury Travel, “Luxury travellers today are…no longer drawn by ostentatious services, they have moved towards a quieter, understated luxury, and plan their trips with a focus on authenticity and experiential travel”. They do so by choosing travel products that allow them to experience local cuisine, art and culture, offthe-beaten-track destinations, spectacular scenery and nature reserves. The report explained the changing profile of luxury travellers, which includes the following characteristics:

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A desire to be entertained, engaged and enriched rather than just pampered

An increasing need for authenticity, simplicity and environmental care

Growing use of internet and social media

An increased interest in very exclusive products and memorable experiences

A growth of multi-generational family travel

According to the 2013 Resonance Report on US Affluent Travel & Leisure, Baby Boomers (55+) are the ones with the most time to spend on travel and leisure. As the report explains, “With newfound time, disposable wealth and an inexorable desire for new sensory and life experiences, Boomers have become the most potent and profitable travel consumers in history.”

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Multigenerational travel has been named the biggest travel trend by the Virtuoso luxury travel network for four consecutive years. The primary drivers of the popularity of multigenerational travel, according to a 2014 Wall Street Journal article, are the “baby boomers with money and a hankering for meaningful experiences”. Meanwhile, Generation X-ers are also spending more time and money on leisure activities. And, while Generation Y-ers (“Millennials”) generally do not have the accumulated wealth (or time) to represent a large share of luxury leisure travel, they are influential in setting trends. One key example is the use of social media. When it comes to their travel choices, Millennials look for “something extra” and the “cool factor” rather than the boring and ordinary. The pictures they then share with their social networks have a snowball effect in influencing subsequent travel choices of their family and friends.

Distinguishing aspects of this type of travel include the emphasis on personal enrichment and learning (activities often led by experts), authenticity (experiences reflecting local environment, culture) and active participation These new trends in luxury tie in well with a distinctive demographic group that has emerged over the past decade: Lifestyles of Health and Sustainability (LOHAS). According to the Natural Marketing Institute (NMI) in a 2007 study, LOHAS consumers represent approximately 19% of the U.S. adult population and have even greater influence (as they are trendsetters). They are motivated to buy products and services that are environmentally conscious, sustainable, socially responsible, and/or healthy for themselves and the planet. With the emergence of the LOHAS consumer, then, it is no surprise that ecotourism, nature, cultural and “soft adventure” tourism will all grow faster over the next 20 years than the tourism industry as a whole (UNWTO’s 2012 Tourism in the Green Economy Report).

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“Experiential travel can take many forms, including personalised adventures, spiritual journeys, voluntary tourism and nature-based ecotourism”

Given these changes in consumer travel preferences, it is no surprise that a 2014 report entitled “The Rise of Experiential Travel” by the Skift travel research firm concluded, “Arguably the most significant, systemic trend in worldwide tourism today is the demand for ‘experiential travel’.” Take, for instance, the exponential growth in ‘adventure travel,’ which can be considered a subset of the experiential travel segment. A study commissioned by the Adventure Travel Trade Association (ATTA) found that the adventure travel market grew from $89 billion in 2009 to $263 billion in 2012, representing annual growth of 65%. Skift defines experiential travel as travel that is “more immersive, local, authentic, adventurous and/or active.” AFAR magazine explains, “Experiential travellers want to dive deeper into authentic, local, culture, connecting

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with people from other cultures in ways that enrich their lives and create lasting memories”. Experiential travel can take many forms, including personalised adventures, spiritual journeys, voluntary tourism and nature-based ecotourism. Distinguishing aspects of this type of travel include the emphasis on personal enrichment and learning (activities often led by experts), authenticity (experiences reflecting local environment, culture) and active participation. The challenge for a resort owner or operator seeking to enter this market segment is how to design and develop an experiential lodging component that captures the sensation of “camping” in spectacular natural settings, while also providing the most important comforts of a luxury

hotel room (comfortable beds, private, fully-appointed bathrooms, and so forth). Another challenge is how to create experiential programming that will engage and inspire guests, based on the unique natural and cultural attributes that the destination has to offer. Steps are actively being taken to ensure that experiential travelling gains the position it deserves in the market, with the most recent being the announcement of National Geographic’s Unique Lodges of the World. This is a collection of 25 lodging facilities around the world offering a wide variety of activities and experiences in environments of exquisite natural beauty. As the market grows, such efforts are expected to multiply. Over the past five years Malta has experienced a record year after the other and this is the result of a joint effort amongst the key stakeholders. Now that we are enjoying success we need to look at the future with a view to further polish the current formula and accordingly take into consideration the latest trends in the international tourism sector in order to remain competitive and enjoy a sustainable strategy. There is no doubt that experiential travel-related strategies benefit the mass market by making our destination more attractive while at the same time setting the right foundation to attract important segments such as the luxury market, which to date still has plenty of potential for growth in Malta. Acknowledgments: Source: E.Poinelli, HVS

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Associates Members List Platinum Associate Members Air Malta E-mail: stefan.bartolo@airmalta.com Contact: Stefan Bartolo Service: National Carrier Bank of Valletta p.l.c. E-mail: customercare@bov.com Service/Product: Banking & Financial Services

Deloitte E-mail: info@deloitte.com.mt Service/Product: Audit, Tax Advisors, Financial Advisory Services, Management Consultants

GO E-mail: sales@gobusiness.com.mt Service/Product: Communications & Entertainment

Corporate Associate Members Captain Morgan Cruises E-mail: info@captainmorgan.com.mt Contact: Kevin Zammit Briffa Service/Product: Specialises in cruises around the Maltese Islands, Jeeps Safaris on Malta & Gozo and also Underwater Safaris and exclusive charters. City Sightseeing Malta

Ernst & Young E-mail: ey.malta@mt.ey.com Service/Product: Assurance, tax, transactions & advisory services Grant Thornton Malta E-mail: mark.bugeja@Mt.gt.com Contact: Mark Bugeja Service: Audit and Assurance, Business Advisory, Tax, Corporate Services

off tours on open-top buses, both scheduled and chartered Emirates E-mail: paul.soler@emirates.com Contact: Paul Fleri Soler Service: Air Carrier

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E-mail: laf@farsons.com Service/Product: Beer Bottlers & Catering Operations Smart Technologies E-mail: info@stl.com.mt Contact: Christopher Demicoli Service: IT Solutions Packages Studio 7 Co. Ltd.

E-mail: info@citysightseeing.com.mt Service: Operators of Hop on Hop

Simonds Farsons Cisk plc

Malta International Airport plc E-mail: mia@maltairport.com Service/Product: Airport Operators MSV E-mail: info@msvlife.com Service/Product: Provider of life insurance protection, long term savings and retirement planning

E-mail: studio7@studio7malta.com Service/Product: Audio Visual Services, Sales, Installations, Media Productions

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Gold Associate Members Attard Brothers

HSBC

E-mail: info@attardbros.com

E-mail: nathaliecamilleri-sultana@

Service/Product: Shop fitting,

hsbc.com, infomalta@hsbc.com

contract furniture, machine services

Service/Product: Banking Services

Cleaning & Security Services Ltd

INIALA

E-mail: alan.bonnici@cssmalta.com

E-mail: petra@iniala.com

Contact: Alan Bonnici

Service/Product: Corporate Philanthropy, part of the Inspirasia

Global Payments Limited

Foundation

E-mail: stephen.teuma@globalpay.com,

John’s Garage E-mail: dabdilla@johnsgroup.eu Service/Product: Taxi, car rentals, transport services, leasing KPMG E-mail: kpmg@kpmg.com.mt Service/Product: Audit, Tax & Advisory Services Laferla Insurance Agency Ltd E-mail: mlj@laferla.com.mt Service: Insurance

raymondzammit@globalpay.com

Intertek Laboratories

Service: Payment institution, debit/

E-mail: info@interteklabs.com

credit cards, acceptance-EPOS, tele-

Service: IT Consultants, support &

phone/internet

network specialists

Palazzo Parisio E-mail: info@palazzoparisio.com Service: Weddings & Events

C. & H. Bartoli Ltd

Continental Purchasing Ltd

The General Soft Drinks Co Ltd

E-mail: import@chbartoli.com

E-mail: salesadmin@cpc.com.mt

E-mail: mmicallef@gsd.mizzi.com.mt

Service/Product: Hotel & Catering

Service/Product: Catering equip-

Service/Product: Bottlers & Dis-

Equipment & Supplies, Carpets &

ment and supplies

tributors of Soft Drinks, Water, Beer

Silver Associate Members

Floor Coverings

& Energy Drinks

Bronze Associate Members Contact Advisory Serv. E-mail: angelo@contact.com.mt Service: Business Consultants Hospitality Web Systems (HWS) E-mail: info@hwebsystems.com Service/Product: Hospitality E-Commerce Solutions including websites, e-marketing, on-line booking facilities, search engine optimization and more

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Impressions Printing & Signs E-mail: info@impressions.com.mt Website: www.impressions.com.mt Service: Effective printing and sign services, Menus, brochures, business cards and more possibilities

Mac Pherson Med Ltd E-mail: andrewmo@macmed.com.mt Service: Paint suppliers Maltatransfer.com Ltd E-mail: sales@maltatransfer.com

Jmp&C E-mail: info@jmpmalta.com Service/Product: Kitchen Hygiene, Housekeeping Detergents, Disposables, Trolleys, Safety signs & Colour coded Products

Service/Product: Transport Services Sigma Coatings (Malta) Ltd E-mail: tony.critien@sigmamalta.com Service/Product: Paint Suppliers

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THE INGREDIENTS ARE LOCAL. THE STANDARDS ARE GLOBAL. THE FEELING IS UNIVERSAL.

Take the time to spoil yourself and discover the true meaning of elegant hospitality while dining with InterContinental Malta. Offering varied local and international cuisine, both indoor and al fresco, the choice is yours. Whether you crave pristine seaside dining with a Mediterranean sunset as company, the most cultured tastes and flavours from across the globe, or a selection of inventive and innovative cocktails… we certainly have something to suit your taste.

Do you live an InterContinental life?

For more information or to make a reservation, please contac us on 2137 7600 or email malta.fnb@ihg.com.

In over 170 locations across the globe including HONG KONG• LONDON• NEW YORK• PARIS


The Council Members

The Council members in depth Joseph Restall In this series of articles we find out about the people who matter in the association that truly matters, the MHRA. Position at MHRA: Council Member and Chair of the Sub-Committee for Energy, Environment and Sustainability.

Establishment represented: Was elected to represent Hilton but have since moved on and now am an independent consultant.

Years in council: 3.

Reason you are in hospitality: Having worked for 5 years in the energy sector and 16 in the manufacturing sector, I wanted to enrich my experience, so eleven years ago I took the opportunity to take up the post of Chief Engineer at the Hilton Malta. Tourism is one of the largest economic activities

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in Malta and this experience has enabled me to understand the operating environment of the industry and to contribute towards its growth in the areas of energy consumption, environmental mpact and sustainability.

List previous places you worked in, owned or managed: I started off my career as a university undergraduate in engineering at Enemalta where I also served as a Shift Engineer for a year. I moved to ST Microelectronics as Process Engineer. I left ST as Senior Engineer after 4 years and joined Toly Products where I spent 11 years leading the Automation, IT, Process, Maintenance and Innovation departments as Senior Manager. I then joined Hilton as Chief Engineer in 2004, leaving in June 2014 to pursue my consultancy career.

Dirty hands because of handson policy or better suited for delegating? In engineering you start off with a literal load of “dirty hands” and getting down to the nitty-gritty is still something I enjoy. With time and experience, however, one understands that greater results can only be achieved by teams of people and therefore team management and delegation become crucial to continued success.

What are your aims for MHRA? MHRA has been battling for better

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management and the depoliticisation of the country’s energy sector, something I firmly believe in. Together with the drive for better energy efficiency within the industry, my aim is to assist our members to have access to information, funding and the right regulatory environment which are essential for the future sustainability of the industry whilst representing their interests when discussing national policies. I also promote cross-fertilisation of information within the industry so that we can learn from each other’s experiences and best practices.

Favourite pastime: My favourite hobby is drama and anything to do with the theatre. I enjoy the stage, whether it is sound and lights or singing and acting and all it entails, whenever I have time for it. I’m a great fan, an ‘ultra’ as they say, of Serie A football team Fiorentina and Formula 1 team Ferrari. I am an ex-rugby player and still follow it and am also a qualified scuba-diver. I also enjoy cooking, which I find very relaxing, and eating!

Favourite food: It has to be pasta – but no seafood.

What are Malta and Gozo’s shortcomings in tourism? There are a number of shortcomings mainly related to the quality of our product. Our infrastructure, in particular the roads, still leaves a lot to be desired. If we are to get

quality tourism and entice betterpaying tourists to Malta, we have to keep moving away from the sun and sea concept and instead market our cultural and historical product with the favourable climate as an added bonus. Frequent cultural events will also become tourist attractions in the shoulder months, filling in this important gap in our industry.

I am also very concerned about the environment. There is a push towards further development of the precious little virgin land we have left and I strongly feel that better protection and opening up of our countryside will improve not only our tourism product, but the quality of life of all Maltese Our Maltese hospitality has always been one of our unique selling propositions but I’m afraid that with the recent trend in many establishments of almost exclusively employing low-cost foreigners to serve guests, we are killing this crucially important aspect of our attractiveness. This aspect is further compounded

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“We need to be more innovative and use changes in the world environment to our advantage”

by the perception that jobs in the sector offer low pay, long hours and a lower social status. This perception is certainly not helped by the weakness in the vocational/educational establishment which needs a thorough overhaul if it is to serve the true interests of quality tourism. Malta, as an island state, relies on connectivity for its economic survival and in this respect the future of Airmalta is of grave concern not only to the tourism industry. I am also very concerned about the environment. There is a push towards further development of the precious little virgin land we have left and I strongly feel that better protection and opening up of our countryside will improve not only our tourism product, but the

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quality of life of all Maltese. Strong action against illegal activities and development is needed to free up more open spaces so that the country can appear dressed in evening clothes rather than shabby dungarees. We also lack a certain creativity in our approach to the market – we tend to replicate what has been done successfully elsewhere and therefore become followers rather than leaders. We need to be more innovative and use changes in the world environment to our advantage.

And what about the positives? One of our greatest positives is definitely that MHRA as the sector’s representative has embarked on initiatives aimed at creatively taking our local industry into a leading role.

A prime example of this is the initiative to create the Mediterranean Tourism Forum. It is a unique opportunity to capitalise on the rich cultural, historic and environmental USPs that Mediterranean countries offer and collectively attract more quality tourism whilst putting Malta right at the centre of the map so to speak. Our greatest advantage is also that, being a small country, when we want to we can get together and take decisions quickly and execute them faster than most other competitors. We are resilient and able to react quickly to changes and adversity. Malta as a country is a microcosm of history, culture and beauty and, if taken care of properly, this will always be our strongest selling point.

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Martin van Kan


Cover story

Onwards and upwards in the luxury trail Sometimes entrepreneurs’ audacious decisions are followed by silence. This is the stunned silence of people who step back, laugh inwardly and go off to tell their colleagues about the madness of these entrepreneurs. The people who dare break moulds move on to bigger objectives and ultimately build a better world not just for themselves but for all around them. When the dreamers of the world turn their hopes into reality the world follows.

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hen InterContinental Malta was planned in the heart of Paceville many laughed. When it was built there was more sniggering: too big, too spacious and cut off from the sea. When it was a success—a resounding success—the sniggering subsided. Then plans were revealed to extend the hotel skywards by an additional two storeys, offering super-luxury suites. This time round no one laughed. Now there was a chorus of admiration and hushed awe. The InterContinental Malta is no laughing matter and

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what it will provide for the leisure and business market is a big step up the luxury ladder. In this feature Insider meets Martin van Kan, Area General Manager, Malta at InterContinental Malta. Insider delves deep inside the plans, the promise, and the exciting future not just of the hotel but also of Malta itself. When Insider meets Martin van Kan at InterContinental Malta, the planned transformation is in full swing but all seems to be going seamlessly, with the Area General Manager, Malta sipping

his coffee in a calm and collected way. Over a hundred rooms are open and operational, the refurbishment programme is on course and, for the top two floors, the noise-creating works were in the main done and dusted. But, besides all the behind-the-scenes work and the need to carry on the operation and marketing it fully, the Area General Manager, Malta also had to make sure that the luxury suites showroom at the InterContinental Arena Conference Centre was suitably finalised. Life is never lacking in excitement at InterContinental Malta.

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Distributed locally by Charles Grech & Co. Ltd., Valley Road, Birkirkara. Tel: 2144 4400 – www.charlesgrech.com Distributed locally by Charles Grech & Co. Ltd., Valley Road, Birkirkara. Tel: 2144 4400 – www.charlesgrech.com Distributed locally by Charles Grech & Co. Ltd., Valley Road, Birkirkara. Tel: 2144 4400 – www.charlesgrech.com


Sun and sea are great but not unique. The uniqueness is in the country’s deeper core, the gastronomy, the heritage, the temples, the knights’ legacy and all that makes Malta stand out Martin Van Kan is a smooth operator in all the right senses. He glides around not just the hotel but also his words. He has great answers—he uses perfect analogies and descriptive tales that make conversation flow on nicely. Float could be the right word, as the way forward is explained to Insider in a way that doesn’t just make sense but helps us visualize it perfectly. The Area General Manager is a born story-teller and must really know how to whip up passion and energy in all those around him. They will also be housing a fully operational and integrated casino which will be run and managed by a third party. The casino will be sited under the hotel foyer but not visible from there. When we meet and discuss hospitality and Malta, Martin van Kan keeps harping on that it is luxury which will carry the country forward. To Martin van Kan the vision is bright, the objective more than attainable. “But,” Insider asks him, “is this to the detriment of the rest of the local offering? Will the big volume tourism and outlets be driven

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off the radar?” This is definitely not the way luxury and tourism work Martin van Kan tells us. The two can work together perfectly as long as the country keeps transforming itself and improving. And the upgrading of the roads, the noise and the security angle must remain uppermost. Martin Van Kan believes that a place like Paceville, which is a gem, needs more work done to it to make sure security and safety remain uppermost. More policing, more enforcement are needed to safeguard our reputation. As the silly cliché goes the gem needs some polish.

The idea behind the new designer suites, with views to die for and comfort to drown in, is to add value to what travellers now expect from the InterContinental brand. The new revitalised InterContinental Malta is evolving to mete out an unforgettable experience. Besides the 30 designer suites, the top two floors will be like a hotel within a hotel, with a restaurant and an infinity pool which will offer a breath-taking vista. And the designs of the new suites will reflect the local culture and local colours and the hotel will feature many artworks by Maltese artists.

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The showcased suite—an inside peep at luxury After Insider met the InterContinental Malta GM we attended the official launch of the showcased super suite. And quite a wow moment it was. The suite model, built to scale with all intricate details in place, was displayed in the InterContinental Arena Conference Centre which, in all its glory and size, complemented the wow-factor effect. The only thing that was lacking was the view. The suites will in fact take up the top two floors and will command a spectacular view of sea, more sea, sky, and a glorious vista of Malta. You needed to use your imagination to think of what the suites will overlook but for the sheer luxury and terrace space the showcase did a great job. The distinguished guests at the launch could talk of nothing but the luxury product Malta is proudly embarking on. Few words were needed more than—come on in and see for yourself. The bed, the fittings, the chandelier, the design, everything spoke of comfort, excessive comfort to really get any weary traveller re-charged. 54 suites will be ready by end summer 2015 but in May the first suites were launched. The design is modern with a cool feeling; not just cool chic but also cool to fit in beautifully with Malta’s warm summer weather. Each suite will range in size from 90 to 120 square metres, quite enough to explore over a few days and still find unseen, unused corners. But the design is mainly about functionality while exuding a sense of tranquillity. The InterContinental is a door to the city, to Malta but if one is staying at these suites one could nearly be forgiven for not even moving an inch out of the hotel. Even the names connected to the suite, from Bang & Olufsen for the audiovisual system, Minotti for the furniture and Frette for the bed linen, are enough to make you want to pack your bags and enjoy a few days of pampering at the hotel. Luxury has just moved two storeys higher at the InterContinental Malta.

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InterContinental Malta wants to be the door to the country it is in.

The InterContinental Malta’s Area General Manager believes that Malta has overall pluses with a culture that is hard—for an island its size—to beat. And InterContinental Malta wants to be the door to the country it is in. The experience at the hotel, while being unique and unforgettable, is just a teaser, an intro to what lies beyond the door. He wants the traveller to be inquisitive and take in the whole experience of Malta, its heritage, its culture. With such an experience, the traveller to Malta will be the best walking and talking advert for our product. And that kind of marketing is the cheapest—and most effective—advertising any adman in Madison Avenue or London could ever ask for. Martin van Kan talks very enthusiastically about all the good experience at the hotel which is mainly due to

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how happy and how loyal the people behind the hotel are. On his way to work, all Martin van Kan thinks is that it’s going to be a great day. And he works at keeping it that way for him and all around him. This is exactly the feeling he wishes to inspire in others. When the people, who come in contact with guests, or even those working behind the scenes, are happy they instill the same positivity into their work and into the traveller’s mindset. One reason why Martin van Kan is very proud to be associated with InterContinental Malta is that when employees are selected—in whatever grade—the top requisite is their behavioural attitude. Competence comes later. First you fit the bill in behavioural mode and, if the attitude is right, your competences are checked and positions allotted accordingly.

To Martin van Kan nothing is more important than the people he leads: he leads by example so his attitude needs to be positive at all times. If he isn’t positive or he has a problem, he would rather call to say he won’t be going to work. He avoids taking his stress to the workplace, where he will infuse others with his negativity and the end sufferer will be the guest. Van Kan reasons that each time a guest is approached and a positive spark is missed, that is a missed opportunity by all the staff complement and a possible black mark from a present and potentially repeat client. The Area General Manager, who has not even been a year at the helm knows that he has a great hotel as his responsibility. He says he is lucky because the owners, the De Cesares, think as positively as him and are

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in full synch with the InterContinental Malta brand in how they see the hotel and its future positioning. Backing all this is the team he found when he took over. He didn’t have to change much because the people at the hotel were chosen well and he feels that with his team he can really meet the many challenges the hotel has and deliver even more than it has delivered up to today. Nobody and nothing can stand still without moving on. Malta has done brilliantly but has to ensure it is a step ahead at all times. The luxury market is a huge, wide-open one which needs to be tapped not just by marketing it in the right places but by making sure the product is top-notch.

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Malta should be sold 365 days a year—the culture and quality angles are sure sellers and the MICE industry can be developed, and nurtured even more. Sun and sea are great but not unique. The uniqueness is in the country’s deeper core, the gastronomy, the heritage, the temples, the knights’ legacy and all that makes Malta stand out. The Insider group is then taken for a peek at the luxury up on the top floors. At the time of the interview the show-room is nearly ready and Martin van Kan speaks about it with clear, though unstated, enthusiasm. While walking around he speaks to the workers and all is smiles and good relations. “We were truly

blessed,” he tells us happily. “We are smack on schedule as we were lucky to have very competent contractors. Naturally we did our part too as we planned well and closed at a good time to get on with the noisy phase of building. We also prayed a lot to the right saints in heaven,” he chuckles while we are awed by the sheer size and beauty of what will be the 30 super suites. Martin van Kan, with his relaxed and positive attitude to the future and a good sense of humour thrown in, certainly seems on the right path to give the InterContinental Malta and their new venture into super-quality that added push, that added momentum.

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Sustainable Tourism

Moving

from words to action Two diverse but equally interesting speakers recently delivered a masterclass session in sustainable tourism. Both were Italian, both voluble, both passionate about their work, both bubbling with ideas. And their passion for their hometowns and country is reflected in what they would like to see happening here in Malta and everywhere. Both came from very different work-places and backgrounds. Profs Giancarlo Polenghi is a leading art historian and Doctor Chiara Mencarelli the GM of Nun Assisi Relais and Spa museum.

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oth were enthusiastic proponents of ensuring we care for our heritage and turn that same heritage into attractive, living monuments. Art and museums, and people who lecture about them, can be boring beyond belief. Not these two Italians: they challenged all our mindsets and made us think differently about what we should be doing to make visitors and locals further enjoy their surroundings. These two speakers were not just theoretical, as both work in areas which move on to action and delivery. Interestingly, the art historian started his career in marketing and

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advertising. He then moved on, helped found an art school and is also a catalyst for the preservation of heritage. The GM of Nun started her professional life in teaching and she now heads the hotel while still teaching in the hospitality field. Maybe what this proves most is that all professions, all aspects of our life, intermingle, and the more we understand different facets of our life the better our experience of life itself. Closing ourselves up in bubbles does not make us better humans. It does not matter that teachers, hoteliers, artists and carpenters remain stuck to the same trade or profession all their life. But they must use their eyes and mind to see things from different perspectives.

Polenghi touched on many aspects of what art is , how we look at it and experience it. The meaning of art of the past and the appreciation of the present is essential if we are to preserve heritage for future generations. Awareness comes not just through history and expert knowledge, but first of all from local people. Locals, the ones who lived and live with the surrounding heritage, are vital to keeping alive any art or site. Tourism is an important resource but it must not be seen only as a way to make money. Nature, art and history are part of what we are. All this, according to the Italian advertiser-turned-art conservator, is a gift because we did not build or create it, it is something given.

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It is a duty because this gift must be accepted, understood, valued, defended, loved, and developed. Wise words which can see us, even in Malta, love and appreciate our patrimony even more. Just as art is universal so we should globalise our efforts to preserve it. A most important aspect of all that was discussed is the Genius Locis, a term which has a beautiful sound but also has a wide-ranging meaning. Literally it was used to signify the protective spirit of the place. This started off in Roman religion but should be the abiding strength of all our endeavours in our art, heritage and historic places. Polenghi pointed out that it is not enough to save and look after a place. We must also preserve its true identity without turning our sites into glorified Disney-like attractions. Modern technology pushes us to use Hollywood effects in our heritage, which turn them into a fictional setting. Polenghi emphasised that he, with his marketing background, is certainly not against using instant, impactful language and methods, otherwise no one listens, no one discovers. But the thin line between building a fake scenario should be trod upon with care. Polenghi here pointed out how sad and unnatural it is that Venice, that most beautiful gem, is losing all its live-in locals. A place without locals becomes a sad, unreal piece of art, as only locals make a place breathe. Fakes, pastiches of Venice and Rome’s Foro Italico, can be built anywhere but the true one

Profs Giancarlo Polenghi WWW.THE-INSIDER.BIZ

Dr Chiara Mencarelli JUNE / JULY, 2015

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The SPA at the Nun Assisi Relais

remains the only one and therefore unique. Tours built around these unique places must provide an experience which touches people’s real life. The talk about the Genius Loci fitted perfectly with the story of Nun, a Christian monastery built in the 13th century on the remains of a Roman amphitheatre and the Perlasio springs. After a history of neglect and varied uses it was, a few years ago, turned into a boutique hotel and a Spa museum. And although the emphasis is on accommodation, the main attraction of Nun is its sobriety, its closeness to our own spiritual essence. At Nun guests are obviously pampered beyond 5-star quality, but at the same time they experience a feeling of peace, an inner connectivity with what the monastery was built to achieve. Colours, design, even usability,

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are all in line with the spirit of the monastery. Assisi has strong ties with Christianity and remains a most revered Christian place connected to St Francis, one of the most significant saints in Christendom. But Assisi has become a centre for all denominations to meet and try to find common ground and move on to higher, more sublime ways. In the same way, Nun appeals to different people from diverse religions, all seeking inner peace, all finding it in abundance in the restored monastery. The monastery’s true raison d’être has thus been, not just preserved, but expanded. Words flowed between these two Italians as they talked about keeping the spirit of all we have in our past to enjoy both now and in the future. Mencarelli pointed out that spa actually derives from salus per

aquam, healing through water. The Nun has a Spa Museum which, during certain times of the day, is free for any visitors to enjoy. The Spa was mainly introduced because over 2000 years ago there was a Roman temple dedicated to water. It had been a masterpiece of hydraulic engineering with cisterns, tanks and pools. The owners have revived techniques used in olden times to make a stay in the monastery a truly authentic experience. Veneration of the history of the place gives the new hotel a feeling of the sobriety of old, the spiritual connection to its history. Both speakers, in very articulate English with that engrossing Italianate lilt, presented an interesting challenge for us to preserve heritage in a way which inspires us. After all, that is art’s—and heritage’s—true reason for existence.

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Feature

The ins and outs of the rankings game

Today one of the most bandied-about concepts in the local hospitality scene is boutique living. Luxury, individual attention, accommodation with a difference are all seen as the great new mantras for the modern, discerning traveller. Interestingly enough, Hotel Juliani heralded these concepts quite some time ago. 13 years ago the little hotel in Spinola Bay opened its doors to greet its first guests. Situated in the heart of St Julian’s, close enough to the bustle of Paceville but far enough to provide an oasis of peace, it is still greeting guests in its own unique, special way. Every year for a number of years it has figured highly in the online bibles for bookings like TripAdvisor. Insider goes in search of what has made this hotel a success story, why its rankings are so good, who lies behind the brand and what is in store in the future. Insider meets Erika Cassar and Georgios Rouvelas, the married couple who run Juliani Hotel. WWW.THE-INSIDER.BIZ

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E

rika Cassar and Georgios Rouvelas do not just run the hotel and the equally successful Zest Restaurant. They also run a young family and have been friends and a couple since they were students in Switzerland following a course in hotel management. After stints in some hotels as interns— earning nothing but experience and an impressive CV—they worked together in some of the top hotels. Georgios worked at the Hilton Cannes in France, and the Orient Express in Bali while Erika worked at the Gstaad Palace in Switzerland and the Beau Rivage Lausanne. They then both worked together at The One & Only in Dubai.

accepting the different perspective. This reflects exactly what happens in the hotel. They glide in their duties giving support, advice or handson assistance to each other and to whoever needs it.

During their work phase their GMs would note how well Erika and Georgios worked as a team, complementing each other perfectly.

Insider asks Erika and Georgios is how, although it is a small hotel, the Juliani manages to rank high, even winning the prestigious Travellers’ Choice Award this year. “Is it”, Insider asks, “because you know the secret to make it creep up the social media rankings or because the product is so good?”

Even regarding something as petty as whether it was love at first sight, the two different characters, individual and strong, come out with no one dominating, no one asphyxiating the other, but at the same time looking at it differently. Erika’s answer was, “we were friends first then we fell in love and never looked back.” His answer was different. “She joined the course slightly later than me and the others. As soon as she arrived, she made a big impact on me and I immediately fell in love with her.” Other couples would have argued the point, missed the whole point of the interview and tried showing who knows better or who leads. However, they both nodded to each other’s interpretation and moved on,

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After they graduated they came to Malta and joined Erika’s family business, which was built on good, lasting quality in hospitality. Both Barracuda and Piccolo Padre, which are run by Erika’s parents, have been popular with many patrons for countless years. Hospitality, quality and following high benchmarks are what Erika was brought up with. And she found the perfect match in her husband’s attitude to hospitality.

The couple smile and say that, even if they could somehow manage to manipulate or feed the results to climb up the lists, the momentum has to be kept and standards constantly raised. If TripAdvisor recommends you as being top-notch and you aren’t anywhere near that, guests will turn up with expectations that are much higher than the service you can ever deliver. This will drive them to TripAdvisor to lambast your hotel. And climbing back up after being in the pits is hardly easy—even for the best marketing guru on earth.

Zest Restaurant with its original architectural features

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the Deluxe room’s sea view

So the next question was a natural progression from the previous one: “How dependable are TripAdvisor and other ranking sites?” The Juliani couple believe they are very dependable. Georgios says, “hotel guests give their verdict. Who better than them to pass judgement? Today it’s not the experts who pass comments and judgments. It’s people who stay and experience the outlet.”

And Erika adds a twist to that too. “Because,” she says “the marketing possibilities a small hotel can use are limited. These ranking sites, however provide a lot of the marketing themselves. Of course we need to deliver a top-quality product and service, but once that is recognised people do tend to take note of this and flock here.”

The marketing possibilities a small hotel can use are limited. These ranking sites, however provide a lot of the marketing themselves. Of course we need to deliver a top-quality product and service, but once that is recognised people do tend to take note of this and flock here WWW.THE-INSIDER.BIZ

So it’s a really good way of operating—you climb up if you are good; you stay there to keep the custom and this also drives business your way. “As long as quality rules, people will come, and if they are satisfied they come again and again,” adds Georgios. One thing that TripAdvisor and other ranking sites are doing which is not exactly ideal is that they are becoming booking agents. Commercially it made sense for them but in general this means they might not remain as pristine and dependable in their judgement. Time will tell but, if the amount of advertising space booked starts wielding its influence, their very raison d’être might be prejudiced. One way to ensure that Juliani and any outlet remains ranked highly is by making sure all channels, or

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Attention to detail has always made the Hotel Juliani stand out.

as many as possible, are used and carefully monitored. It’s not only TripAdvisor out there. Instagram, Pinterest and all the rest play their own important part and have to be followed, fed and kept very much alive. “Interaction, and quick response is the other secret,” Georgios tells Insider. “One just cannot lie still. If you are high in any rankings and you slip in quality or in response to the consumers’ comments or views then you suffer. The game and even the rules are constantly changing and you have to keep constant vigilance on all that happens, on all that is the best out there. Standing still was never a good way forward but in today’s mobile world with the need for instant knowledge this is a much more important issue.”

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Erika here mentions something that the couple, echoing their parents, have worked for—always keeping the outlets in fine shape and improving them at all times. The Juliani is going through even more renovation with one huge space that was a conference room being turned into a suite. Erika explains that, “Moving on means you also develop and change. And although groups are still important to us it is more the leisure and the corporate traveller who will find us perfect for their stays.” There will also be a board room for the corporate guest who needs to see clients or meet associates. The detail, as always, will be most important—with a balcony in the suite that will blend perfectly but which will also give plenty of viewing capability. There will also be a private

gym for guests, catering for another of the modern traveller’s needs. Georgios and Erika are hands-on, constantly meeting and working closely with their staff and guests. They lead a group who not only pull up their socks and deliver, but always do this gracefully and happily. The way guests are treated by all the people behind Juliani is what still makes a great impact on guests. Today everything is savvier with TripAdvisor and such sites providing a new way forward for quality tourism outlets and their marketing. But nothing beats that most old-fashioned thing called a smile, which never fails to make guests feel at home. And at Hotel Juliani, guests see a lot of smiling by the team behind the operation.

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On your next visit to Valletta stop by for the best choice in wines and spirits. 152 St. Lucia’s Street Valletta, Malta +356 2122 4980

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Article Words: Mario Pace

Language Proficency

and the Tourism Industry - a Key Combination

The European Commission fosters multilingualism and language learning and its goal is to have a Europe where everyone is taught at least two languages besides their mother tongue from a very early age. The ‘mother-tongue +2’ objective was set by EU heads of state and governments at the Barcelona Summit in March 2002. WWW.THE-INSIDER.BIZ

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I

n today’s era, multilingualism has become more than just ‘important’. Knowing a foreign language has evolved to be extremely beneficial. Whether viewed from the financial or social aspect, being able to communicate in a foreign language helps to make ‘real’ connection with people and provides a better understanding of one’s language. The world has contracted to a global village and exposure to different languages is a potent equipment to reach the ladder of success in different fields like business, education, travel and research. In fact, the process of

learning foreign languages is today to be considered in the light of new societal requirements to education and personality development. Knowing how to use a language in specific circumstances and purposes gives people a very strong bargaining power, especially in the labour world. Whereas up to twenty or thirty years ago, speaking a foreign language was a very important prerequisite for just a few, like managers or diplomats, today it has become of fundamental importance in all professional circles. In fact, in today’s European society, languages and interculture

“ Knowing how to use a language in specific circumstances and purposes gives people a very strong bargaining power”

play a fundamental role in getting to know different people and in professional and economic development. In the global marketplace that we now live in, languages have become crucial across all sectors. From law to finance, from tourism to technology, and from marketing to administration, most businesses today need linguists not just to permit communication across the globe but also to understand different cultural realities and needs. In the world of work, language skills are becoming increasingly important in organisations and businesses which want to remain competitive on an international level. As declared by the European Commission in one of its documents on multilinguilism, entitled, “Languages mean Business!”, one of the main reasons why thousands of European companies lose out on concluding deals and contracts is their lack of linguistic and intercultural competencies. And this is exactly why today there exists an array of courses in foreign languages for specific purposes,

...one of the main reasons why thousands of European companies lose out on concluding deals and contracts is their lack of linguistic and intercultural competencies WWW.THE-INSIDER.BIZ

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be it for tourism, for call centres, for business, for commerce and so on, focusing on acquiring the necessary terminological, interdisciplinary and intercultural skills needed for specific jobs. This is confirmed by the CBI Education and Skills Survey (2009: 48) which states that “in an increasingly competitive job market, it is clear that foreign language proficiency adds significant value to a candidate’s portfolio of skills, and can give them a real competitive edge when applying for jobs.” Furthermore, the Business Forum for Multilingualism established by the European Commission (2008: 8) declares clearly that “A significant percentage of European SMEs lose business every year as a direct result of linguistic and intercultural weaknesses.

Although it appears certain that English will keep its leading role as the world business language, it is other languages that will make the difference between mainstream and excellence and provide a competitive edge.” Multilingualism in Malta is a major asset, especially when one considers the efforts and investment currently being made in Europe to enhance language competences in European schools. Historically Malta’s fortunes largely derived from the fact that its people were able to communicate with foreigners in their own language/s and that they were capable of using English whenever a specific communicative situation required this, while also retaining the capability to switch to other foreign languages if this was necessary, as in showing hospitability

and openness to the other. The Maltese felt proud of their multilingualism. However, one must question if this is still the case, especially among the younger generations. Unfortunately, the number of school-leavers who have no accredited certification in foreign language skills as well as in English and Maltese is on the increase. Statistics show a decline in the number of students sitting for SEC exams in foreign languages. This indicates clearly that the interest in foreign language learning in Malta is waning and that a number of children complete their studies at secondary level without obtaining any form of certification in these areas. This is not necessarily accompanied by an improvement of our students’ level of English.

“ Although it appears certain that English will keep its leading role as the world business language, it is other languages that will provide a competitive edge”

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As it is more and more difficult to differentiate oneself from the competition, a strong connection with customers must go hand in hand with outstanding customer communication. In this respect, language competence is the key to success Furthermore, even those who achieve SEC certification do not necessarily find opportunities to improve their language competence as their field of specialisation at tertiary level often does not provide the opportunity to do so.

to differentiate oneself from the competition, a strong connection with customers must go hand in hand with outstanding customer communication. In this respect, language competence is the key to success. Animators, receptionists, representatives, tourist guides, waiters, waitresses, and of course other people in the field of tourism, cannot do without foreign languages. Foreign language skills are an integral component in the provision of a high standard of service in the tourism industry, with many researchers and educators (Horng & Lu, 2006; Lafrenz, 1991; Wenyuh, 2012) highlighting the link between excellence in tourism services and excellent language skills. Furthermore, several research studies not only show that a variety of languages are required on international markets but also that the most quoted barrier to intra-European mobility remains lack of foreign language skills.

This is very sad, even more so in view of the fact that Malta’s economy is dependent on human resources and foreign trade, driven by financial services and tourism. Tourism plays a fundamental role in Malta’s economy and is a steadily growing economic sector. Customer satisfaction and the creation of a strong brand therefore play an ever larger part for each company.

It is therefore no surprise that language skills are considered by employers as one of the ten most important skills for future graduates. This was confirmed by a recent Eurobarometer study where 40% of recruiters in the industry sector highlighted the importance of language skills for future highereducation graduates.

In the competitive and constantly changing tourism industry, it is a challenge to develop customer contact optimally and continuously. As it is more and more difficult

All this indicates an urgent need to diversify the local language training market with courses in foreign languages for specific purposes that will enable learners to acquire

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and develop a communicative competence which allows for an effective and meaningful interaction in diversified social contexts. Although the teaching of foreign languages in general and the teaching of foreign languages for specific purposes have a lot in common, there exist two main divergences, namely, (i) the learners and the reason they are learning the subject and (ii) the aim of instruction. Such courses in foreign languages for specific purposes imply addressing the immediate and very specific needs of the learners involved, having as their driving force, both in the preparation stage as well as in the development stage, the needs analysis of the learners. This includes forming a list of preferences of what the learners want and need to learn, as far as language and content are concerned, and of how they would like to learn them. This is by no means an easy task given that in the same group individuals may vary considerably in age, education level, motivation, aptitude for languages, work experience, selfdiscipline, etc. It therefore includes getting to know their knowledge of the language, their past work experiences as well as their cultural and linguistic backgrounds. This stage is fundamental since it determines what skills to teach, how to teach them and what materials must be used to help the learners reach their goals. The people studying a foreign language for tourism purposes

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usually need specific listening and speaking skills. Furthermore, it must be acknowledged that the role of the teacher is to help, to facilitate communication in class, to provide the tools for the learners to develop and acquire the skills they need, to equip the learners with tools and strategies that will empower them in a world where the teacher is only one of the many providers, or sources, of language exposure and communicative practice. The main challenge is to provide the learners with the necessary linguistic tools to be able to apply the concepts, interpret them, and above all communicate in the target language, not just with the particular jargon characteristic of that specific occupational context but also with the language of everyday informal talk, that allows them to communicate effectively with their clients regardless of the occupational context. There is little doubt that skills in the language of another country are invaluable when communicating with people from that country. This is nowhere more apposite than in the context of the cross-cultural interface between

...language skills are considered by employers as one of the ten most important skills for future graduates JUNE / JULY, 2015

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Foreign language skills are an integral component in the provision of a high standard of service in the tourism industry, with many researchers and educators highlighting the link between excellence in tourism services and excellent language skills

tourism enterprises and visitors. This is confirmed by a recent study about Language Needs in Tourism Enterprises in Pallars Sobirà, Catalonia (Cañas & Pérez, 2014). From this study that focused on the linguistic strategies that tourism enterprises based in the region of Pallars Sobirà (Catalonia, Spain) follow in order to improve their services, it resulted that the more foreign language skills are available to a company, the better it will be prepared to meet customers’ needs. In our globalised world, multilingualism is key and English is no longer enough. This phenomenon is even more important for the hospitality sector, and this explains why, in many countries, companies in the tourism sector are seeking to provide a better service by speaking other languages.

References http://ec.europa.eu/education/languages/ languages-mean-usiness/doc1460_it. Htm http://nationalemployerservice.org.uk/ resources/cbi-nord-anglia-education-andskills-survey-2009/ http://ec.europa.eu/education/languages/ languages-mean-usiness/doc1460_it. Htm “Demographic trends, socio-economic impacts and policy implications in the European Union 2007” a monitoring report from the European Observatory on Social Situation and Demography. http://ec.europa.eu/employment_social/spsi/ docs/social_situation/2007_mon_rep_demo. pdf. Eurobarometer 304, 2010 ’’Employers’ perception of graduate employability’’

Dr Mario Pace is Senior Lecturer at the Faculty of Education of the University of Malta and is an expert in foreign language teacher training. He is responsible for the development and implementation of the Foreign Language Proficiency Assessment National Programme (SPA) recently introduced in secondary schools in Malta, as well as for the development, management and delivery of a number of in-house training courses of ‘Italian for Commercial Purposes’ for various private and public companies across the Maltese Islands. Dr Pace can be contacted on mario.pace@um.edu.mt

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Feature Words: Victor Calleja

A place worthy of any grandmaster Immerse yourself in the scene. It is 1565. Think of yourself as a leader of nobles, the Grandmaster of the Knights of St John. You have just led your Order to overcome an onslaught by the impressive Ottoman forces. You survey the whole country—Malta— which is your headquarters and you now dream of seeing a city rise where none stood, a city resplendent, a city defended. Together with your band of Knights, military strategists and engineers you choose Mount Sceberras which has a natural harbour leading to it. Your name is La Valette, and the city you dream of and plan will have your stamp by carrying your name.

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T

o conjure up from nothing a most impressive city must have taken a lot of courage, a lot of bravado, a lot of self-belief. Building a road, a castle or even a palazzo needs boundless energy—but to La Valette all was possible, all doable.

Now transport yourself to what the city is today. Or better still go on dreaming and let your senses be mesmerised by enjoying a stay at Casa Ellul which is what I did. The Valletta feel intensifies in a place where all the senses are given an extra shot, which exudes a feeling of utter exuberance that is this glittering boutique hotel.

That is the dream which turned to the reality called Valletta. The city’s essence is that its beauty lingers, it evolves, it changes and becomes ever-more impressive as it takes in the new and blends seamlessly with the old.

Casa Ellul is an old palazzo in Old Theatre Street surrounded by history while being a part of that history. Most of its old charm and beauty have been left intact but modern commodities and the utter beauty of design are all around you.

“The feeling is that you get the best of both worlds, the old and the new, meshed together in proper harmony”

The façade has been restored to its grand glory, with an imposing door painted a beautiful dark grey tone which blends graciously with the whole of Valletta’s texture—the limestone, the other houses, the shops, the majestic buildings which you see with every step. This in fact is one of Valletta’s few defects: there is too much to see, too much to appreciate. If only life’s other defects were so enjoyable! The whole city is a throbbing kaleidoscope of vibrant bits of beauty. You do not need to walk to look for niches, churches, history, imposing buildings—it is all there around you. Casa Ellul has another touch which won me over—there is a window on the left of the front door, through which you can see the reception and some trademark bits of the hotel. Standing outside, you admire and instantly feel attracted. If I had been just wandering around the city, I would definitely have peeped in, or hoped to peep in, to see what lies beyond. Walking into Casa Ellul is like walking inside a veritable time-spin. You feel the beauty, the fascination of an age long gone—when damsels and knights or officers and their consorts moved around with ease and grace. The magic is that you feel drenched in the old charm but with all the attendant— and unexpected!—modern comforts. The feeling is that you get the best of both worlds, the old and the new, meshed together in proper harmony. Just beyond the reception area, adjacent to a cosy breakfast room is a courtyard dominated by a grand statue of Hercules. His big torso and

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“One penthouse suite’s terrace is literally just a few feet from the Carmelite church at the level of the belfry “ covered-up manhood fit in divinely and manage to avoid the feeling that it is, as you would expect it to be, slightly kitsch. Go into the bathroom situated just behind Hercules’s naked behind where an opaque glass pane gives on to the courtyard. The divinity—Hercules was after all the son of Jupiter, the main god up in Olympus—has his perfectly-chiselled bottom in full view from the bathroom chink. A touch of whimsy, a touch of fun: and if you are staying in Valletta for a few days or weeks or longer, fun is what it is all about. After all the Knights were sworn to humility and chastity but being chaste was hardly the thing they excelled in. They frolicked, they played, they threw magnificent balls—so that peekaboo touch of the god’s behind is truly a master stroke. This mastery of design—with little and huge touches everywhere—is seen all over the place. The designers made the most of the hotel’s position to offer the best views of the city from the rooms. One penthouse suite has a terrace with a hot tub and it’s literally just a few feet from the Carmelite church at the level of the belfry. While lounging in your room or bath or basking on the terrace, you can imagine ringing the bells of the magnificent church yourself—and if you look down from the terrace you can enjoy the sea and city views. The other suites enjoy even more sea views and the whole landscape of Valletta— the spires, the terraced rooftops, the intimate Valletta few visitors see. The building which today houses Casa Ellul was the residence of the owners’ grandmother. Beautiful panels of

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“At Casa Ellul they managed, by some design magic, to make linen emblazoned with their logo to not look overbranded but chic”

photo montages adorn the walls of the breakfast-room. They are impressive works of art which depict notable events and personages of the family and business. There are weddings, shops, little children and other memorable photos all helping to tell a story of a family and business which has long been established but which is still vibrant and re-energised. This photo artistry is seen throughout the hotel rooms with many panels depicting, in a unique style, Valletta scenes with religious themes. The result is most effective. It is fascinating to think how this house once harboured a family in it. Thinking of the old granny with her children and doting on the grandchildren makes one feel almost nostalgic. But when it comes to comforts, ultra-modern and snazzy bathrooms and beautiful furnishings Casa Ellul forgot all nostalgia and put in the latest in anything needed in a modern hotel. One beautiful suite on the first floor was the kitchen of the house. On the piano nobile, which was the official sitting room, is another lavish suite dripping with luxury, with a grand piano and an original fireplace, as well as a bath on a closed, wooden, balcony which faces the front of the church. In many places the old tiles were left intact and they seem like lace turned into terracotta. This might not have remained a family residence but it is now a residence for many a discerning traveller who can enjoy the palazzo ambience. During my stay I enjoyed the service with more than a few smiles which you get at Casa Ellul. Breakfast, next

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to Hercules’s fig-leafed front, was a delight, with an espresso to make most Italians proud. But no hotel really means anything unless the room you are staying in—especially the bed—is super comfortable. Any haughty officer would approve of these and of the linen beautifully emblazoned with the Casa Ellul logo. Usually such things make a place look over-branded, over the top, over-sold. At Casa Ellul they managed, by some design magic, to make it merely look chic. While staying there I actually asked to be moved from one room to the other—to breathe in what the place is really like. I know I gave more work than necessary to the staff, but nothing is too much for them. I had the time, they had the patience. Ably marshalled by a courteous, ever-smiling GM Casa Ellul has given Valletta a boutique hotel which makes the guest feel special. Valletta—like Casa Ellul itself— has been revived and its latent tiredness as a city has been shed. It is now truly resplendent and resurgent and there is a definite buzz to it. The hotel is the perfect place to restore anyone’s mood and feeling towards life, art and good living. Art oozes out of Valletta and Casa Ellul is certainly a nod to all that is artistic in hospitality. La Valette did not envisage Valletta with a baroque twist. But if you don his mantle again I am sure you will give your stamp of approval to the grand and masterful way Casa Ellul has been transformed.

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The dark side of tourism Words: James Sultana

D

ark Tourism is normally defined as, the act of travel to sites, attractions and exhibitions of death, disaster or the seemingly macabre. Because of its connection to death it is also referred to as ‘Thanatourism’.

Foley and John Lennon to describe tourism to death-related sites in an editorial for International Journal of Heritage Studies in 1996, and popularised in the year 2000 by their book, Dark Tourism: The Attraction of Death and Disaster (Lennon and Foley, 2000).

The term Dark Tourism was first coined by Professors Malcolm

A small island state like Malta depends on tourism for a substantial

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part of its Gross Domestic Product and employment. Besides the idea of giving tourism a boost, exploring the possibility of marketing Dark Tourism could help to reduce the seasonality of Maltese tourism, since the places associated with Dark Tourism are easily marketed for the low autumn and winter seasons. The media has become fascinated with dark tourism over

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Article recent years. Various books and websites have been dedicated to this type of travel. Running a Google search for news items with the terms ‘Dark Tourism’ produces 525 news items while a general search returns around 149,000 results. Among these one finds articles in established newspapers such as the Telegraph and The Guardian, and international news sites such as the BBC and the CNN. In recent years, dark tourism has also attracted increased academic interest and became a popular area of research. While the concept of Dark Tourism has been around since the mid-1990s, it does not mean that Dark Tourism did not exist before scholars decided to acknowledge, classify, study, and bring it to the attention of the general public. People always had a certain fascination with what is macabre, gory, or related to death. At the scene of a car accident, for example, cars slow down to get a glimpse of the accident. Another example is the sinking of the Costa Concordia, the wreckage of which attracted tourists to photograph the ship. People have been enthusiastic, though the word might seem rather out of place in this context, to visit sites of battles, massacres and other macabre occurrences. Dark tourism has historical roots. The act of travelling to sites, attractions and exhibitions of death, disaster or the seemingly macabre, is not a new phenomenon. Sites of disasters such as Pompeii in Rome and battlefields, among others, have attracted thousands of travellers for

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many centuries. Some scholars trace travelling to and experiencing places associated with death to at least the eleventh century but their popularity intensified in the late eighteenth and early nineteenth centuries with visits to sites like the battlefield of Waterloo. Other Scholars, like Professor Philip Stone of the Institute for Dark Tourism Research in Preston, goes even earlier than that. Stone sees dark tourism as an old concept in a new world. Stone and his colleague, Prof Richard Sharpley, identify Roman gladiatorial games, pilgrimages to the Holy Land attracted to the site of Christ’s crucifixion and medieval public executions as the first instances of this type of tourism. Gladiator fights and other similar shows in Roman times indeed can be considered an early type of Dark Tourism. After all the Romans used fights between individuals and wild animals to entertain the public at sites like the Flavian Amphitheatre (Coliseum) in Rome, and similar structures , which attracted people from all around the empire. The numerous movies produced about the theme of gladiators, for example the hugely successful The Gladiator starring Russell Crowe and partly shot in Malta, and the recent television series Spartacus, show that interest in the subject is still strong. In the Middle Ages pilgrims travelled to tombs and sites of religious martyrdom. Ria Dunkley, from the University of Cardiff, points out that ancient pilgrims visited the English Cathedral at Canterbury, the site of

Thomas-a-Becket’s murder. More recently World War II concentration camps and places hit by terrorism have also featured in the itineraries people visit. Over half a million people visit AuschwitzBirkenau each year. The standard two-and-a-half-hour guided tour gives the audience at best a very limited understanding of this vast and sprawling site. Ground Zero in America, marking the collapse of the Twin Towers, has become an essential part of the ever-expanding dark tourism sector. Throughout its two thousand year history, Christianity has also been an indirect promoter of Dark Tourism. Prof Tony Seaton views the influence of Christianity as a major contributor to Western fascination with death. Christian symbolism (mainly the cross) and the display of relics (which are nothing more than body parts or belongings of dead people which have been elevated to saints), and by giving prominence to death and macabrity (for those who are not brought up in the Christian religion), the Christian Church kept death at the forefront of everyday life. After all Christian – especially Catholic – churches are full of paintings and statues of suffering and death. Naturally the idea is that death is just a rite of passage towards eternal life. Dark Tourism is however a very delicate subject and heritage marked as Dark Tourism might be emotionally charged. Some aspects may be morally acceptable to a group of interest and not another. Heritage in Dark Tourism might be provocative and contested.

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Completed in 1608, ‘The Beheading of Saint John the Baptist’ had been commissioned by the Knights of Malta and still hangs in Malta’s St. John’s Co-Cathedral, where Caravaggio was inducted and briefly served as a knight himself. The painting is a good example of a Dark Tourism attraction.

It is here that the subject of Dissonant Heritage (the idea brought forward by Professors Ashworth and Turnbridge) becomes important for the ethical and moral issues pertaining to Dark Tourism. Dissonant heritage is concerned with the way in which the past, when interpreted or represented as a tourist attraction, may for particular groups or stakeholders be distorted, displaced or disinherited. It is thus extremely important for those studying and managing Dark Tourism sites to take into consideration the moral and ethical aspect of these places. Be it a tomb or the Palace of the Inquisitor, it is extremely important that one understands that these places are or could be emotionally charged and therefore, a balance should be sought between presenting these places for the purpose of Dark Tourism and the respect for what they represent.

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Along with ethical and moral issues one has also to consider the concept of authenticity. It is clear that the way to respect the place and people related to it, is to keep it as authentic as possible. However this is not always easy. In certain instances even the interpretation of facts for a particular place can be tricky. What does Malta have to offer in this context? A look at the historical or heritage attractions that are at the moment being promoted to tourists shows that we always market the sector of our history we feel most safe with. Mainly we concentrate on our Prehistoric Temples, on the Knights Hospitaller of St. John or on our traditions like the Maltese Festa. At the moment Dark Tourism is either not marketed or what is on offer

is very little. Malta basically offers three museums or sights that can fit into the category of Dark Tourism according to current definitions. These are the Inquisitors’ Palace in Birgu, the War Museum in Valletta and the Mdina Dungeons. However there are other sites like War Memorials and cemeteries that also could fall within this category. These places are not in an established framework of Dark Tourism as a niche on its own merits. They are mainly museums and sites within the broader context of tourism in general. There is no comprehensive plan that includes appropriate management, to transform and market these sites under the umbrella term of Dark Tourism. Even in the academic and publishing world, the exploration of Dark Tourism has been given little importance in Malta.

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There are also a number of traditions and events that could be marketed for this purpose. Good Friday traditions, foremost among them the processions held in various places around Malta, could easily be marketed to the Dark Tourist. While these are by definition and scope religious events, no one can deny that they have a high content of gore and macabrity. It would be interesting

to attract those interested in Dark Tourism to these processions, paying attention to respect the religious sensibilities of the local population and those who view these events as purely religious. However, a balance can easily be reached, keeping in mind that a lot of tourists already attend these processions not just for their religious significance but also out of curiosity.

Sites like cemeteries are also a source of attraction for potential Dark Tourism. Again the sensibilities of the local population need to be respected, however our cemeteries offer architecture and artistic elements that make them highly attractive for those interested in these places. The Catacombs and Hypogeum are other typical sites since these are burial sites too.

James Sultana is a PhD candidate at the Institute for Tourism, Travel and Culture; University of Malta. He has a Masters degree in Mediterranean History from the University of Malta and an MBA from the University of Leicester.

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Heaven can definitely wait, the food here is just as divine Words: Victor Calleja

I

dreamt I had died. I wafted on, felt I was high—on a cloud of something more fulfilling than happiness. All was easy, all tension gone, all was a-dazzle. I looked around and people looked well-pleased, all eating, drinking and nodding seraphim-like. Would—could—the dream go on? I expected angels to hail me while singing effortlessly and playing on their harps. Then the dream was over as I left the restaurant where food is not delicious but heavenly, where the feeling is celestial. Dreams end, disintegrate and, unlike some parts of reality, you cannot re-run dreams at your will or command. Much as we progress, the dream of capturing our innermost subconscious stories remains just that, a passing vision.

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But, thankfully, repeating experiences like eating at Caviar & Bull (C&B) is possible, and dreamlike each time. The beauty of Marvin Gauci’s creation is that you do not need to die to enjoy it though his food is what I would imagine to be served on the fluffy clouds up in Saint Peter’s domain. Malta’s tourism is waking up to a new dream and vision and a new concept is slowly but successfully taking over. The word luxury is now often mentioned in connection to Malta. Tourism has taken root as one of our economic mainstays and now it is edging further up in quality. Six-star hotels, seven-star service are words used and entrepreneurs firmly believe that Malta can serve

up this quality. Interestingly one of the places that has reached an apex in quality—C&B—is situated smack in the middle of where one of the luxury dreamplaces is planned. C&B is part of the Corinthia St George in what was once dubbed the island’s golden mile but which will soon become the encrusted mile. For the sake of luxury, it would be fitting that the marvels of Marvin Gauci, chef-visionnaire, patron and maestro at C&B, would not be retained just there but given even more space. Some people consider Marvin too talkative, too driven, too big-headed. All this could be true—but isn’t that what pushes people to top glory? Isn’t that what makes people not just

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“Marvin’s food at C&B comes to you presented beautifully and a bite, or two, is all you need to be transported close enough to heaven”

dream but perform and dish out? He—and others like him—will surely put us on the culinary map. We need these dreamers to keep upping the ante, where food is not just dished out but gloried and glorified. Today food as a concept is a reality even on this dot of an island and locals and foreigners are all enjoying this evolution in our restaurant scene. Marvin is a talking doer who delivers a great experience. One ingredient of his success is that he builds a team which can work under stress seemingly with no effort. Marvin comes up with the ideas, discusses them with his team, then all is planned down to the minutest detail. This makes it easy—or less difficult—for him to cope with large numbers, going round taking

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orders at table, greeting, smiling and making it all look easy. Marvin has many tricks up his sleeve but his biggest plus is the food he produces at his iconic C&B. It comes to you presented beautifully and a bite, or two, is all you need to be transported close enough to heaven. Usually restaurant reviews go into details about what was eaten, what was exceptional, what was lacking, what could have made the whole experience that much more unforgettable. But the C&B experience does not need comments about the chocolate dessert, the soup’s divinity, the gnocchi’s perfection or the next step even beyond heaven that was the beef. Malta’s food scene has a great future ahead with so many restaurants

taking food and their patrons seriously. And Marvin and his team get it spot-on, every time. Caviar & Bull is a piece of heaven— which you not only dream about but which is possible any time down that great mile.

STOP PRESS And with Caviar and Bull proving such a success, Marvin Gauci does not stop and rest. His latest venture, Buddhamann, has just opened. Sitting atop Caviar & Bull in the Corinthia footprint this new restaurant is a completely new concept in food, in fusion and in the way food is prepared.

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Destinations of Excellence The European Destination of Excellence (EDEN) is a project which promotes sustainable tourism development models across the European Union. The project is based on national competitions which are focused on a different theme each year. The localities that win the national competitions are appointed ‘European Destinations of Excellence’ by the European Commission. Furthermore, EDEN also seeks to enhance the visibility of emerging destinations, providing a platform for exchanging good practices, and promotes a network between the awarded destinations. 68

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Sustainable Tourism

T

he Malta Tourism Authority together with the Ministry for Tourism has been participating in the EDEN initiative since its inception in 2006. In previous editions of the EDEN competition, the Maltese Islands have been awarded the following titles: • Nadur the EDEN Emerging Rural Destination • The hamlet of Santa Luċija in Kerċem the EDEN destination for its Local Intangible Heritage • Mellieħa for its Protected Areas

Advertorials targeted towards the local market were also published in order to increase awareness and appreciation of what our islands have to offer. Online and print advertorials on specialised websites and magazines provided information about what Malta’s EDEN destinations have to offer, thus promoting small ‘unknown’ destinations to potential tourists who are looking to discover the uniqueness that the Maltese Islands have to offer. The present competition, which is currently underway, focuses on Tourism and Local Gastronomy, with our submission being entitled Malta: A Taste of the Mediterranean.

• Isla for Aquatic Tourism and • Għarb for the Regeneration of Physical Sites In 2012 the European Commission, together with the member states, introduced a new concept, whereby a promotional and awareness campaign is implemented every two years. The aim of the campaign is to raise the awareness of EDEN as a brand and to promote the EDEN destinations around Europe. In 2014, the office responsible for the implementation of the EDEN initiative launched a second campaign which focused on the following target markets: • • • • •

Scandinavia Benelux Germany Austria Switzerland.

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The project aims to award those destinations which have developed a specific tourism offer based on their local gastronomy. The project aims to ultimately choose one destination of excellence and four runner-up destinations. The winning destination will be awarded the ‘EDEN Destination for Tourism and Local Gastronomy’. The project will focus mainly on the potential of the destination, the authenticity of the product linking it to local heritage, as well as the sustainability of the event. The target beneficiaries are localities within Malta and Gozo, with the direct benefits consisting mainly of promotional tools for the winning destination and the four runners-up. Furthermore, the achievement of such an award strongly encourages

the localities to embark on new projects and also reflects well on any future EU or National applications that the localities may decide to submit. The theme is very fitting for the Maltese Islands since food is always an important aspect of any given celebration. The islands are characterised by a Mediterranean diet which also includes a number of signature dishes and different delicacies. The Tourism Policy for the Maltese Islands (2015-2020) identifies gastronomy as an important niche for Malta’s tourism sector.

The project aims to award those destinations which have developed a specific tourism offer based on their local gastronomy One of the favourable elements in the promotion of gastronomic tourism is that it revolves around the shoulder months, thus contributing towards the seasonality issue. Furthermore, locally-produced food tends to be sustainable and further strengthens the focus on ethical and responsible tourism, whilst also fuelling other sectors of the local economy such as agriculture. Ultimately, gastronomic tourism offers one of the travel industry’s most sustainable, local and inclusive sectors, one in which small businesses can thrive.

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Changes

Finance

in hospitality financial reporting Words: Anthony Doublet

H

ow hospitality companies recognise revenue will soon change after the long-awaited revenue recognition standard is issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) (collectively, the Boards). The standard will supersede nearly all revenue recognition guidance in IFRS; as a result, hospitality companies around the globe will need to re-evaluate their policies and practices for recognising revenue for arrangements associated with owned, managed and franchised properties. The standard uses a five-step model to outline the principles an entity must apply to measure and recognise revenue and related

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cash flows from contracts with customers. The model’s core principle is that an entity will recognise revenue at an amount that reflects the consideration to which it expects to be entitled in exchange for transferring goods or services to a customer. When applying this model, hospitality companies must use greater judgement and make more estimates than they currently do under today’s guidance. Areas needing increased judgment may include identifying the performance obligations (i.e. promises to transfer distinct goods or services to a customer) in the contract, making estimates of the amount of variable consideration to include in the transaction price and determining how the transaction price should be allocated to each performance obligation.

For example, a hotel management company offers services to hoteliers governed by the stipulations of a hotel management contract. Under the new revenue recognition rule, the management agreement must be analysed to determine if the stipulations represent performance obligations. Specific contractual obligations may include arranging services for hotel guests, employing hotel personnel, providing revenue management and accounting services, granting the right to use intellectual property and trademarks and performing marketing activities. Substantial judgment will be necessary to determine which of these stipulations represent performance obligations individually, and which of them do so when bundled with other promises in the arrangement.

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After performance obligations are identified in an arrangement, the transaction price is determined. The transaction price includes an entity’s estimates of variable consideration that it may be entitled to from the arrangement when it is probable that a significant reversal of revenue will not occur in a future period. The standard refers to this threshold as a “constraint”. This differs from current guidance, which allows for revenue recognition only when amounts are fixed and determinable. Variable consideration may include amounts that are earned based on the underlying performance of the property (e.g. a percentage of hotel revenues) or incentives that are earned when certain performance thresholds are met. Once the performance obligations are identified and the transaction price is determined, companies must allocate the transaction price to each performance obligation. The standard generally requires that entities allocate the transaction price to the performance obligations in proportion to their standalone selling prices. However,

in certain circumstances, variable consideration may be allocated to a distinct service in a series of distinct services (e.g. the management services performed in the second month of a one-year contract). Revenue for each performance obligation is then recognised when the performance obligation has been satisfied, which is when the good or service has been transferred to the customer. The new revenue recognition standard also provides specific guidance for recognising revenue from sales-based royalties earned in exchange for granting distinct licenses of intellectual property (e.g. use of brand names and trademarks) that differs from the general model described above. Under this specific guidance, royalties from such arrangements are not recognised as revenue before the subsequent sales occur. As a result, hospitality companies would not be required to include in the transaction price amounts expected to be received in exchange for distinct licenses of intellectual property until the subsequent sales occur.

The accounting for gains and losses on the sale of certain non-financial assets, including real estate properties, also may change in certain circumstances. Under the new standard, when real estate is sold and a management or franchise agreement is retained, it is more likely that the transaction will qualify for sale recognition, and that revenue (i.e. gain on sale) will be recognised sooner than it is under today’s accounting. In comparison, under current guidance, the restrictive recognition criteria that must be applied to real estate sale transactions often delays the recognition of a sale and/or results in a deferral of the associated gain on sale. Other considerations that hospitality entities will need to evaluate include how to recognise amounts paid to real estate owners to secure management or franchise contracts, whether reimbursements received for payroll and other costs incurred should be presented on a gross or net basis, and the accounting for customer loyalty points programmes.

“The transaction price includes an entity’s estimates of variable consideration that it may be entitled to from the arrangement when it is probable that a significant reversal of revenue will not occur in a future period”

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“Under the new revenue recognition rule, the management agreement must be analysed to determine if the stipulations represent performance obligations”

Most public entities will adopt the standard in 2017, while most private entities will adopt it the following year. Early adoption is allowed under IFRS. The standard allows for either “full retrospective” adoption, meaning it is applied to all periods presented in the financial statements, or “modified retrospective” adoption, meaning it is applied only to the most current period presented in the financial statements, but other disclosures are required. With over two years until the effective date, it may appear that

there is ample time to prepare for adoption of the new guidance. But companies should begin working with auditors and other advisors to evaluate their existing revenue arrangements and address interpretation and application issues. While some companies may be able to implement the standard with limited effort, many companies will find implementation to be a significant undertaking. Companies with more work in front of them will need to move at a faster pace and may need to consider adding resources. An early assessment is vital to managing implementation.

Early communication with key stakeholders (e.g. audit committees, investors) will be important if a company anticipates significant changes in the timing and presentation of revenues. In addition, consideration should be given to whether any changes are needed in internal control over financial reporting. In addition to their internal preparations, hospitality companies may want to monitor the discussions of the Joint Transition Resource Group for Revenue Recognition (TRG) established by the Boards to help them determine whether additional guidance or clarification is needed.

Anthony Doublet is Assurance Leader at Ernst & Young Malta Ltd. With over 30 years’ experience in financial auditing, Anthony has provided assistance to various clients in external audit, due diligence assignments, investigations and financial reporting to both national and international clients alike. As an Assurance Partner of Ernst & Young Malta since 1994 and currently also Assurance Leader, Anthony plays a key role in project leadership and client liaison with clients. He also serves as the Quality and Risk Manager Partner of the local firm. Anthony is a fellow member of the Association of Chartered Certified Accountants (ACCA) and the Malta Institute of Accountants. This article first appeared in EY’s ‘Global hospitality insights: Top thoughts for 2015’.

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Feature

photos: Sean Mallia

The man behind Sterling

M

ost visitors to Valletta are impressed by it. It has been designated a World Heritage Site by UNESCO, and it belongs to humanity—not just the Maltese. It is truly a gem to admire and enjoy, but there is a breed of people whose love of Valletta and its ways transcends others’ feelings. With Valletta re-awakening from its slumber, it is easy for people to love

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Valletta. But to a proper Belti, born and bred in Valletta, Valletta was always the best thing that happened to the world. One such Belti is Alfred Fenech, a jeweller, entrepreneur, raconteur and the man behind Sterling, a brand which has been a leader in Valletta for over a century. Alfred, after going into jewellery from a young age, acquired the Sterling brand just over 30 years ago.

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Alfred—or Freddie to his many friends from Valletta and beyond—admits he regrets having moved out of il-Belt to live with his family away from the city confines. But most of his time is spent in Valletta, in his office above the flagship shop in Republic Street corner with South Street—just off the new Piano-designed theatre and Parliament and a few metres away from Charles Grech café, a place Alfred loves. Alfred has a twinkle in his eyes which lights up even more on quite a few

occasions—when he talks of his wife, children, grandchildren, his work, waterpolo, football and anything connected to Valletta. But he also has it when Charles Grech is mentioned. He considers the café ideally placed but also believes it ticks most boxes for excellence. The coffee there is made with passion and pride, the snacks are delicious and the friends are plenty. Alfred loves going to Charles Grech for a bit

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75


Charles Grech is to Alfred Fenech a great success story the service is what truly clinches it for Freddie. of banter with the other café-goers— friends of old, new ones and also other jewellers. This is his way—to chat, to tease, to have a good laugh. But this is the essence of all true Valletta people. They work hard and they love life. Even in football they celebrate in style, with a carnival-like atmosphere reigning not just when they win. However, winning adds a few cherries and smiles to the whole affair. Another sure giveaway is that true beltin always refer to Republic Street as Strada Rjali or Kingsway. And to Alfred that is what it is—a truly regal street. Today Republic Street— maybe except on Sunday mornings—

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Valletta is an architectural gem made more interesting with its new entrance but it also needs people who breathe life into it

Everyone who comes in feels at home and relaxed and the ambience is a true winner. In addition, according to Alfred, the way the café atmosphere changes to a wine bar and cocktail bar in the evening is something few places— if any—manage as seamlessly as Charles Grech.

has not remained the street of old. Then it was the place for all young, and not so young, men and women to walk up and down the street greeting friends and meeting loved ones or potential love flames. And Sterling, that pioneer of style in jewellery, moved with the times back in its beginnings. When ferry crossings were the only means of getting into Valletta the best business street was St Mark’s Street. But when buses and cars became the new means of transport, Sterling moved to Strada Rjali where it still stands in glory to this day.

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Things change, people move with the times but, even with all the new shopping centres and malls, Valletta’s main street is still the one where you would need to dip deepest into your pockets to buy or lease a shop. Charles Grech is a great success story—in the time since its opening it has become the place for the discerning, the young, the lawyer in a hurry, the foreigner who wants to taste a proper part of Malta, the businessmen who yearns for some banter. However, the service is what truly clinches it for the people of Valletta.

Alfred loves the fact that cafés like Charles Grech are thriving and many new restaurants and hotels are earmarked for his beloved Valletta. But he would love to see more of a revival in the retail world as well. He does not just talk but acts—in fact he forms part of the Republic Street Business Community and they organise shopping festivals and more. Valletta is an architectural gem made more interesting with its new entrance but it also needs people who breathe life into it. Alfred Fenech and Charles Grech surely play their part in making Valletta even more enjoyable, alive and a living gem.

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Feature

How lowcalorie products

I

may contribute in weight management

n recent years, more and more people seem unable to effectively manage their body weight. The scientific community is really worried about this and looks for useful tools that can make weight control a more realistic scenario.

James Hill, Professor of Pediatrics and Medicine at the Medical School of the University of Colorado and obesity expert, revealed that the secret for better management of body weight is to eat smarter and be more physically active.

This was in fact the central theme of the conference ‘Why low calorie count’ which was held in Brussels by the International Sweeteners Association - ISA. The main conclusion of the conference, attended by many scientists (academics, behavioural psychologists, nutritionists and representatives of the World Health Organisation) was that, “Low-calorie sweeteners can and should become our main ally in the fight against diseases such as obesity and type II diabetes which, during the last years, have taken the form of an epidemic”.

In their many years of research, the famous professor and his colleagues found that adopting small changes on a daily basis, such as the choice of food and low-calorie drinks, or a long walk, may have significant positive impact over time, in terms of weight management.

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In the same context, Prof. Adam Drewnowski of the University of Washington, world-renowned expert on obesity prevention and treatment, referred to the results of the new research. One of the

most important was that people using low-calorie sweeteners seem to also adopt a healthier, balanced diet and are more physically active. According to Prof. Colette Shortt, President of the International Sweeteners Association (ISA), ongoing views exchange between the scientific community, those responsible for policy formulation and the food industry, is the only way to ensure that all of the above use the best possible evidence and the best sources to help address current health challenges - and the International Sweeteners Association is proud to motivate and support this process. More information about low-calorie sweeteners and their role in weight control can be found here: http://www.sweeteners.org/ en/event/isa-conference-2014.

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Feature Words by Julian Zarb, with additional material by Sara Bartoli and Claudia Pediconi

A new concept of tourism Community based tours: the southern villages’ experience “Modern travelling is not travelling at all; it is merely being sent to a place, and very little different from becoming a parcel.” (John Ruskin)

B

eing a parcel or package does not fit the modern tourist anymore. It is essential to offer something different, something to enhance a tourist’s personal experience. For this reason, in 2010, the Ministry for Tourism, Culture and the Environment launched an initiative to add value to the visitor experience on these islands. Fifteen local councils agreed to develop itineraries and maps for their locality that would give

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the individual visitor the choice of selecting between a general sightseeing tour of the iconic sites, or a more relational and cultural experience off the beaten track. The fifteen itineraries and maps were uploaded to the Malta Tourism Authority website (visitmalta.com). In the last quarter of 2013, this project was carried forward as part of a research study on communitybased and relational tourism through the Institute for Travel, Tourism and Culture at the

University of Malta and with the assistance of a number of internship students from Spain and Italy. The emphasis is on interaction with the locals, storytelling and experiences by the locals and the discovery of some of the lesser-known histories of these localities which no guide book will ever feature. The pilot tours to Qrendi, Safi, Mqabba and Kirkop were recently launched. Dubbed the tour to

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“Meet the Locals,” they target the visitor who is interested in more than just buildings and sites together with their related dates, timelines and histories. These tours are about people, they are about intercultural experiences through the food, stories and traditions that feature in these localities. The tours are spread over two half-days, starting at around 3 pm and finishing at around 8 pm, with dinner in the band clubs of the localities.

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The project will not stop there but aims to develop the basis for community-based and inclusive tourism plans at a local level through consistent and continuous consultation with the stakeholders, including the local community. If you have any suggestions, proposals or comments about these tours, please call on 23402722 or 23403748 at the Institute for Travel, Tourism and Culture at the University of Malta. Help develop a more diverse and interactive socio-cultural activity through tourism.

The emphasis is on interaction with the locals Julian Zarb is resident Visiting Lecturer – ITTC, University of Malta. He is also completing a doctorate study on the process and implementation of a local tourism plan by using a consistent and continuous process of consultation with all stakeholders including the local community. Sara Bartoli and Claudia Pediconi are from the Università di Firenze.

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Capital Market Financing Opportunities

News

for the Local Tourism Industry Words: Steve Ellul

P

roject financing is one of the most important business decisions that local tourism players are faced with. With so much potential provided by the local tourism proposition and the entrepreneurial spirit of Maltese impresarios, financing can sometimes be the major stumbling block for transforming a potential venture idea into a commercially viable activity. Traditional bank financing is the most commonly used method of financing resorted to by the local tourism industry. Irrespective of the size of the operation or the type of project requiring financing, bank loans are often used by almost every Maltese hotelier and restaurant owner. Bank financing is utilised to finance both short-term working capital requirements and long-term capital projects. Indeed Maltese banks have historically been instrumental in supporting the

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industry develop through a spectrum of business cycles. As changing regulatory dynamics keep reshaping the banking industry, the Maltese tourism industry might need to diversify its source of financing without assuming excessive and unrealistic financial leverage. This reality emerged in the 2013 MTA-MHRA review conducted amongst Maltese restaurateurs, where 70% of respondents argued that obtaining capital financing from banks was becoming more difficult. In this context, the larger industry players have attempted and effectively succeeded in gaining access to Maltese capital markets through the issuance of bonds and shares on the local stock exchange. The Corinthia Group, Island Hotels and the Eden Leisure groups are amongst the tourism market participants which currently finance

part of their operations through the issuance of bonds to the general Maltese public. With more than â‚Ź300 million in market value, the tourism industry has the second largest representation on the local corporate bond market, preceded only by the financial industry. Borrowing is not the only method of funding from the general public. Both the Corinthia Group and Island Hotels Group have successfully managed to raise equity capital through the years by issuing shares to the Maltese private investor. In this way, these market players have managed to diversify their sources of financing, modified their capital structure and successfully financed various projects and initiatives. Public funding has helped these companies scale up their respective brand and operations during the years. However, many local tourism players are small and medium enterprises, some even micro-operations with

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2132 2153 / 2700 5678

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less than ten people in their employ. The listing rules for such companies might seem too onerous for the limited resources available. Needless to say, this has been one of the major constraints for SMEs in this industry to raise financing from capital markets. Indeed, whilst some of the biggest names have successfully attempted this option, the tourism industry exposure on the local market is concentrated to these big companies. This also poses a problem for a potential investor willing to diversify his investment in different entities within the Maltese tourism industry. In this context, the Malta Stock Exchange is proposing an SME oriented initiative with the objective of making it easier for smaller entities to raise capital from the market. The indication is that this new product will make it easier for companies with a minimum share capital of €11,700 to access the capital market. Furthermore, this programme is designed to be of interest for bond issues between €1 million and €5 million. These proposals are currently being reviewed by the MFSA.

Recent primary market activity strongly supports the argument that Maltese investors are keen to finance companies involved in the tourism sector. Indeed, over the last twelve months, new corporate bond issuance from the hotel segment has attracted an overall aggregate investment amount in excess of €270 million.

Different sources of financing necessitate different considerations in terms of sustainability of repayments. This represents an oversubscription of 3.4 times the amount required by the respective hoteliers. Concurrently it highlights the financing gap between the providers of capital on the one hand and smaller institutions which might presently not be in a position to access the capital markets despite

the strong interest of the investors in providing capital to the tourism sector. Different sources of financing necessitate different considerations in terms of sustainability of repayments. Capital markets usually require a less tangible collateral compared to bank lending, however the cost of financing might be relatively higher for smaller enterprises which are new to the market. Furthermore, whilst periodic repayments on bonds comprise only the interest element, companies need to take into account that the bullet capital repayment at maturity might be significant. These are only some of the considerations which need to be taken into account before deciding which source of financing to opt for. Decisions which have a bearing on financial sustainability are just as important as operational and businessrelated choices. As a fully-fledged financial services provider, Bank of Valletta can assist players in the industry with all their financing requirements, be it conventional lending or assistance in accessing capital from local financial markets.

Steve Ellul is a Chartered Financial Analyst (CFA) and a visiting lecturer at the University of Malta. He is currently a Portfolio Manager within Bank of Valletta’s Wealth Management division where he is responsible for managing both domestic and international financial instruments. Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, il-Belt Valletta, VLT 1130 Bank of Valletta p.l.c. is a credit institution authorised by the Malta Financial Services Authority. Bank of Valletta p.lc. is also a public limited company licensed to conduct Investment Services business by the Malta Financial Services Authority.

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sell...

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Analysis Words: David Bonett

Ten year analysis Gross Operating Profit per Available Room (GOPAR) GOPAR Pre-crisis

Recovery

Crisis

Growth

€17,000 €15,045 €15,000 €13,000 €11,156 €11,000

€10,043

€9,611

€9,000

€8,871 €7,514 €6,479

€7,000 €5,443

€5,261 €5,000

€3,711 €2,185

€3,000

€2,278

€2,133

€2,243

€1,126 €1,000 -€1,000

2005

2006

Source: BOV MHRA Survey by Deloitte

2007

2008

5-star

2009

4-star

2010

2011

2012

2013

2014

3-star

In 2014, Malta’s hotel sector continued to report improvements in all of its key performance indicators and, as 2009 fades over the horizon, the sector’s five-year summary shows nothing but healthy growth in all sectors. A look beyond the fiveyear horizon, however, reveals a more elaborate plot, with the dramatic impact of an economic crisis followed by a period of recovery and an ensuing period of steady growth. WWW.THE-INSIDER.BIZ

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look at the key performance indicators over a ten-year period highlights a strong correlation between rate and profitability. At the height of the pre-crisis period in 2007, the five-star sector was generating a Gross Operating Profit per Available Room (GOPAR) of €10,043. As volumes dropped by 8% in 2008, rates continued to increase, thus cushioning the impact on GOPAR which only decreased by 4%. In 2009, five-star rates decreased by 12% and GOPAR dropped by 22%. In the four-star sector, the trend was similar. In 2009, GOPAR decreased by 32% following a 7.5% drop in Average Achieved Room Rates (AARR). A summary comment in the Deloitte 2009 survey report stated, “Hotel results for 2009 as a whole will rank amongst the worst in recent years and the ‘after effects’ of these poor results will unavoidably linger on for quite some time”. An analysis of the results shows that it took three years for the five-

... rates continued to increase, albeit at a relatively slow pace. It took the five-star sector three years (2010-2012) to surpass its 2008 AARR and, if one accounts for inflation, the 2008 rate was only surpassed in 2014

Occupancy (%) Growth

Recovery

Crisis

Pre-crisis

80%

77.7% 75.5% 71.0%

70%

70.0% 67.5%

65%

74.2% 67.7%

68.2%

70.4%

63.7%

62.2% 58.8%

60%

58.0%

55% 50%

73.9%

73.0%

75%

2005

2006

2007

2008 5 star

Source: BOV MHRA Survey by Deloitte

2009

2010

4 star

2011

2012

2013

2014

3 star

Join the MHRA and support it in its quest to safeguard the interests of the tourism industry and at the same time enjoy the benefits of membership. For further information contact the Membership Officer at membership.officer@mhra.org.mt

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AARR

Pre-crisis

Recovery

Crisis

Growth

€140 €120 €100

103.9 88.4

89.2

95.3

91.7

98.1

101.6

105.3

112.1

119.4

€80 €60 €40 €20 €-

€34

€22 2005

€37

€44

€40

€41

€30

€30

€32

€33

2006

2007

2008

2009

5 star

Source: BOV MHRA Survey by Deloitte

star sector to return to pre-2008 occupancy levels. In the four-star sector, the 2007 occupancy rate of 75.5% was only surpassed in 2013 and the three-star hotels are still chasing the 71% occupancy levels reported before the 2008 crisis. The important thing, however, is that throughout this recovery period, rates continued to increase, albeit at a relatively slow pace. It took the five-star sector three years (2010-

€50

€51

€34

€36

€39

2011

2012

2013

€45

€47

€34

2010 4 star

€55

€46

2014

3 star

2012) to surpass its 2008 AARR and, if one accounts for inflation, the 2008 rate was only surpassed in 2014. Nonetheless, as long as rates were on the rise, the effect on the bottom line was much more significant. In the five-star sector, GOPAR doubled between 2009 and 2014. Of this increase, 65% is attributable to rate improvements, whereas 35% is attributable to volume growth. A 30% improvement in rates over a five-year

period led to a 65% improvement in Gross Operating Profit (GOP). The impact is even more significant in the four-star sector where GOPAR increased by 139% over the five-year period, of which 123% is attributable to rates and 16% to volume. A 35% increase in four-star AARR during the five-year period resulted in a 123% increase in profitability. The extent to which rate increases flow through to the bottom line is of course dependent on maintaining cost structures in check. The results show that the four-star and five-star sectors were relatively successful in maintaining their cost base, whereas the 3-star sector may have struggled with this in recent years. As the pre2009 results make their way off the five-year horizon typically covered in financial analysis, it is worth taking stock of the messages that lie within the trends reported in those years. Decreases in rates have significant negative impacts on the bottom line and are slow to reverse, whereas steady rate increases lead to significant upside in profitability as long as costs are kept under control.

David Bonett is Financial Advisory Principal at Deloitte. David has 22 years’ experience involving audit, cross-border capital markets advisory, business valuations, due diligence, corporate restructuring, international acquisitions, corporate funding, and corporate strategy. As part of the Advisory team, he is responsible for debt and capital markets advisory, M&A advisory, due diligence, and business valuations.

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Ozosystem Services Ltd No 6, Ozosystem Head Offices, Triq l-Iskultur, Qormi Telephone: 21472552 Mobile: 79702320 Email: sales@ozomalta.com Website: www.ozomalta.com

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  

  ⇒  ⇒  ⇒  

              

 • • • •

   

• 

              

 


Review

Words: Kevin Attard Compagno

IT Review:

The MICROS

Enterprise Solution Suite Halfway through 2014, Oracle purchased Micros to add it into its �Oracle Hospitality� range, bringing these two prestigious brands into a synergistic marriage. Micros is one of the most renowned brands in the Hospitality industry - so it was no surprise that Christopher Demicoli had a certain aura of pride while talking to me about 2 of the Micros Products. WWW.THE-INSIDER.BIZ

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I

asked whether any success stories could be mentioned, and Chris quickly told me that Smart Technologies is currently hard at work rolling out additions and upgrades at both the InterContinental Malta and the Westin Dragonara resort. A curious aspect of the hotels’ procurement procedures was also explained to me by Christopher - usually (for all but the most mundane items), the upper echelons of the brand or chain is where the decision is taken to partner with a particular vendor or product.

Micros 3700 (RES) The Restaurant Enterprise Solution certainly sounds like a mouthful, but running a number of outlets means you must be in control. Micros have fashioned an end-to-end solution which can give you a handle on all the operational aspects of your business that are needed as soon as a client walks into your establishment. The Point of Sale itself is geared towards servicing the customer in the most effective manner, with speed built in and fuss kept out of the process. The User Interface streamlines the recording of a customer’s meal or drinks order, by presenting a specialised touch-screen interface to the staff, with user-friendly icons and prompts to guide users through the order-taking process. Even idle time on Micros 3700 is utilised by displaying adverts when it is not in use.

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”Table Management” is the name of this game - and Micros can also provide software tools targeting this facet of your business. This is the Micros TMS (Table Management System). By collecting information about your customers, the system can help you build a customer ”profile” to understand habits and preferences. This enables you to provide a faster and more personal service to your repeat customers. Busy establishments can also keep track of reservations and waiting lists. This is the way to eliminate the large, clumsy, grubby diary at the front desk. Kitchen and bar operations then link into the collected information, where the different stations receive the relevant part of the customer request. This then ties into inventory management to keep track of materials. Employee management is also catered for by the system, allowing you to manage complex rosters and schedules. It also allows you to define different rights for staff members, depending on their role.

All this information is collected into a back-end database. Restaurant owners operating multiple locations have additional benefits from this, because it allows them to centralise the procurement process, making savings in terms of costs and logistics. It also allows generation of detailed and summary reports for measuring performance and profitability.

Micros 9700 (HMS) The Hospitality Management System is designed for integration with the back-end Opera Property Management System. This is for the large hospitality establishments (typically, but not limited to, Hotels) which have diverse catering outlets, but also require room management (handling reservations and rates), Front Desk and Back Office operations. The system is ready to handle the more complex needs of such operations, catering for collection of cash from guests, cross-charging a customer from another property or outlet (in the case of property establishments), keeping track of accounts receivable where necessary, calculating and settling of commissions due to travel agents and other related entities, reporting on individual property performance as well as the consolidated view.

WWW.THE-INSIDER.BIZ


Micros Simphony The modern evolution of POS for Enterprise-class Hospitality Management is perfectly represented by the best-of-breed solution Micros Simphony. Even though it is possible to deploy the solution at a single property, its real strength is in its scalability to much larger environments, allowing deployment for thousands of workstations spread across multiple locations. Targeted for a data-centre hosted approach, Micros takes this one step further by providing their own hosted platform, allowing your business to

concentrate on its core competency (operations) and leaving the back-end management of the IT infrastructural components to the experts. A single Management Console allows for centralised management of each and any element within the enterprise.

Micros Materials Control Have a frank conversation with any restaurateur about managing a catering establishment, and you will quickly find that control of raw materials is very high on his list of

bugbears. One common trend is for the establishment owner to be present for a significant amount of time on site to keeps things in check. The owner finds himself limited to manage no more than 2 outlets, because he �cannot be everywhere at the same time�. Micros provides an ancillary tool to harness this beast, in the form of the Micros Materials Control system. The 3 main targets are Inventory Management, Increasing Efficiency, and Cost Reduction. Inventory Management can be streamlined by consolidating orders from different departments or indeed different


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outlets. Your inventory data can also be interfaced with your backof-house systems for seamless integration. Larger entities may raise the bar by creating direct links with their business partners (typically materials vendors) for instant order creation, delivery, and fulfilment.

Gather all your data into one central command centre through ‘Micros InMotion’ on Android and iPhone

Efficiency gets a boost by implementing internal control procedures that use a digital workflow process rather than a confetti-like trail of paper as a request flows from kitchen to vendor, and the use of handheld devices brings a new level of ease of use. Keeping costs under control becomes a painless experience with great tools to keep stock levels within established parameters, managing purchases via effective process for workflow and approval, and real-time stock control. You can also tie things together by linking stocks to standard recipe cards.

Keeping costs under control becomes a painless experience with great tools to keep stock levels within established parameters WWW.THE-INSIDER.BIZ

How to See Your Data

Where to Keep Your Data

Micros provides you with an extensive array of standard and customisable reports. Today’s world is changing, and we want information HERE and NOW. Link your systems to the MYMICROS. NET system, bringing all your data into one central command centre. The result: Micros InMotion on Android and iPhone.

Large hospitality establishments will very often have their own fully deployed data centre to support the infrastructure and solutions needed for the various outlets and business units. But the trend is starting to change, particularly for smaller entities.

You get up-to-date information directly on your smartphone or tablet wherever you have a data or wireless internet connection, bringing together essential metrics for your finances, staff, and transaction details from your POS stations.

Micros now provide a hosted model for the back-end tools to support your operations. Instead of buying and maintaining servers to host your solution, you can simply connect your Front Desk or Restaurant or indeed practically any station, with Micros’ servers, so you can get on with doing what you know best running your business - instead of running an IT department.

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Directory Bakers

Catering Supplies (Equipment)

M.S. Catering Golden Harvest Mfg Co Ltd UB21, Industrial Estate, San Gwann SGN 3000

T: 21 332 391 F: 21 310 044 E: info@goldenharvest.com.mt

Carpet & Upholstery Cleaning / Floor Polish & Ceiling Pro

General Cleaning/ Professional Window Cleaning

dealers in pre-owned and refurbished imported catering equipment

Mario Said M: 9949 2639 E: mscateringequipment@ gmail.com

Disposables & Food Storage

TCR Services Ltd Ozosystem Ltd

6, Triq L-Iskultur, Qormi

T: 21 472 552 E: sales@ozomalta.com W: www.ozomalta.com

Hotel Chambermaid Services/Food & Beverage Services

Ozosystem Ltd

6, Triq L-Iskultur, Qormi T: 21 472 552 E: sales@ozomalta.com W: www.ozomalta.com

T: 2122 7342 / 4 F: 2122 7345 M: 79478222 E: info@diroccotrading.com W: www.diroccotrading.com

Catering Supplies

Flags & Banners

Ozosystem Ltd

6, Triq L-Iskultur, Qormi T: 21 472 552 E: sales@ozomalta.com W: www.ozomalta.com

Insurance Services

Middlesea Ins. p.l.c Middle Sea House, Floriana FRN 1442

JMP

G1 Triq Tal Handaq Tal Handaq Qormi QRM 4000 T: 2141 3154 F: 2131 3183 E: info@jmpmalta.com W: www.jmpmalta.com

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53/54, Msida Road, Gzira GZR 1400 T: 2133 4255, 21 313 748 F: 2134 3604 E: info@gauciborda.com W: www.gauciborda.com

T: 2143 3200 M: 9945 5152 F: 2142 2020 E: info@tcrcleaningmalta.com W: www.tcrcleaningmalta.com www.cleaningservicesmalta.com

Oriental Sauces

Importers, General Merchants & Commercial Agents

Kitchen Hygiene and Housekeeping products

Gauci Borda & Co. Ltd

15 Triq Iz-Znuber Mosta MST 4000

J & E Griscti Ltd

Di Rocco Trading Ltd

Di Rocco Business Complex, Prince Albert Street Albert Town, Marsa MRS 1045

Kitchen Exhaust/HVAC Systems Cleaning

T: Tel: 21 246 262 F: Fax: 21 248 195 E: middlesea@middlesea.com W: www.middlesea.com

“Minerva”, Quarries Street, Msida MSD 1103

T: 2123 3375, 21 230 071 F: 2123 6904 M: 9947 6732, 9949 92192 E: grisctie@maltanet.net, grisctij@maltanet.net

Security Services

Dedicated Micros (Malta) Limited

BLB017, Bulebel Ind. Est., Zejtun ZTN 3000

T: 2148 3673 F: 2144 9170 E: sales@dmicros.com.mt

WWW.THE-INSIDER.BIZ


Software Solutions

Taxi Services

Uniforms

Scope Software Solutions

Wembleys

In Design (Malta) Ltd

Eagle K-wear Co. Ltd

T: 2137 4141 / 2137 4242 M: 79374141 / 7937 4242 E: wembleys@maltanet.net W: www.wembleys.com

T: 2700 8080 / 2149 8860 F: 2149 4698 E: corporate@idmalta.com W: www.idmalta.com

T: 2144 2329 F: 2144 5575 E: info@eaglek-wear.com W: www.eaglek-wear.com

14, Gio Batta Saydon Street, Zurrieq ZRQ 3560 M: 7979 6629 E: info@scope.com.mt W : www.scope.com.mt

24 hour minicab services / Wedding Car Services

115, St George’s Road, St Julian’s

Zebbug Road, Attard ATD 9027

Notabile Road, Mriehel Birkirkara BKR 3000

SCOPE Solutions T 790 55555 E info@scope.com.mt W www.scope.com.mt

WWW.THE-INSIDER.BIZ

JUNE / JULY, 2015

101


Your healthy Your healthy Your healthy SALT Youroption healthy SALT option option SALTF R EE NO ADDED SUGAR FRF EER EE NO ADDED SUGAR NO ADDED SUGAR SALT

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UB21, Industrial Estate, San Gwann. Tel: 2133 2391 Email: info@goldenharvest.com.mt www.goldenharvest.com.mt

GOLDEN HARVEST GOLDEN HARVEST

UB21, Industrial San Gwann. Tel:Tel: 2133 23912391 UB21, IndustrialEstate, Estate, San Gwann. 2133 Email: info@goldenharvest.com.mt www.goldenharvest.com.mt Email: info@goldenharvest.com.mt www.goldenharvest.com.mt

GOLDEN HARVEST

TAKING CARE OF THE ENVIRONMENT IS EVERYONE’S BUSINESS

UB21, Industrial Estate, San Gwann. Tel: 2133 2391 Email: info@goldenharvest.com.mt www.goldenharvest.com.mt

Le Meridien Hotel and Spa embraced this concept by introducing a Food Waste separation system at source in its everyday operations. Following this initiative this hotel was announced as the winner of the Food Waste Reduction category at this year’s MaltaWaste Reduction Awards organised by WasteServ Malta Ltd This year’s edition of

will be held between

21-29 NOVEMBER 2015

WILL YOU BE TAKING PART? For more information contact us on

8007 2200

ewwr.ws@wasteservmalta.com WasteServ


Entertainment & Culture Venues

Fat Harry’s Pub

Fat Harry’s pub has a unique British pub theme décor walls cluttered with pictures of bygone days, wooden beams, old plank flooring and shelves full of memorabilia for a walk through time. A relaxed atmosphere is always in the air at Fat Harry’s, which also has outdoor seating for summer or for the lovely Maltese winter days. Every night Fat Harry’s boasts some of Malta’s top entertainers besides a Big Screen showing various sports. One can also enjoy a game of darts, dominoes or cards. The Pub always has a fully stocked bar of local and world renowned beers on draught, wines, cocktails and shooters besides a very good selection of imported spirits competitively priced as house specials. Food prepared in house by our team of chefs using fine local produce and ingredients, is served all day. Fat Harry’s favourite is the Traditional Fish n’ Chips and Mushy Peas followed closely by the famous 200g Harry burger and some very tasty rice dishes.

WWW.THE-INSIDER.BIZ

Open every day from 12:00 - 02:00 at Bay Square, Bugibba. Tel: 2157 2163, 2158 1298 Open weekdays from 11.00 - 23.00 and weekends from 11.00 - 23.30 at Level -1, Malta International Airport. Tel: 2757 2163

Tal-Familja

We serve a variety of seafood and shellfish that is brought in daily from local seafood markets. The restaurant’s most popular starter is the antipasti of shellfish and this is usually followed up with a grilled or poached fresh fish or a mouthwatering prime cut Irish beef steak accompanied with side dishes of roast potatoes, grilled fresh vegetables and freshlymade salad. Our home made desserts include panna cotta, crème brulée and hot chocolate pudding served with a scoop of ice-cream. Guests can choose to sit outside on the terrace enjoying country views or inside in cool air-conditioned comfort. Early bookings are recommended!! We are now accepting reservations for staff parties... have a look at our staff parties set menus on our website. You can also join us on Facebook.

If you are looking for the freshest seafood, fresh fish and tasty Irish beef steak and you want to spoil yourself, Tal-Familja Restaurant is the place to dine.

Open Tuesday - Sunday 11.00 - 23.30 Mondays closed all day Triq il-Gardiel, Marsascala Tel: 2163 2161 - 9947 3081 www.talfamiljarestaurant.com Now also open Palazzo Preca in Strait Street, Valletta

Mirabelle Restaurant

The Mirabelle restaurant has been operated by the Debattista family since 1980. In 1999 the restaurant was completely renovated and themed with a cottage style interior, giving you a warm and relaxed feeling the minute you walk in. It is perfect for lunch with friends, a special celebration, or a romantic dinner for two. One can also dine alfresco, with St. Paul’s Islands just across the bay. One of the family, Godwin, is the head chef and he always uses fresh ingredients for the good selection of pizza, pasta, salads and succulent steaks. His Specials of the Day have become very popular with our guests. Quality of service is very important at the Mirabelle, and another member of the family is always around, helping out and making sure that all are enjoying their food.

Open every day from 9:30 - 23:30 at Bay Square, Bugibba Tel: 2157 2163, 2158 1298

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Tourism? We have a clear picture At Deloitte, we know you need more than a functional solution to your business problems, you need real industry insight - a clear picture. Making informed decisions is key to the effective management of all business organisations. With close to 20 years of experience in analysing performance, costs, trends, and general market information of the tourism industry, the Deloitte Malta firm is well established to provide advisory services and business solutions to operators in this sector. To learn more please contact David Bonett at dbonett@deloitte.com.mt

www.deloitte.com/mt

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte Malta refers to a civil partnership, constituted between limited liability companies, and its affiliated operating entities; Deloitte Services Limited, Deloitte Legal, Deloitte Technology Solutions Limited and Deloitte Audit Limited. The latter is authorised to provide audit services in Malta in terms of the Accountancy Profession Act. A list of the corporate partners, as well as the principals authorised to sign reports on behalf of the firm, is available at www.deloitte.com/mt/about. © 2015. For information, contact Deloitte Malta.


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