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Newspaper Post
No. 1 - Q1 2017
Human Resources in the Hospitality Industry: the state of matters
08. From the Minister for Tourism the Seventh consecutive year of record growth 16. Can we do without Air Malta? 36. Making ends meet at 3star level
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Contents
5 Editor’s Letter: The unique industry that Hospitality is 8 from the Minister for Tourism - the Seventh consecutive year of record growth
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8
15
16
26 29
29
36
48
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59
61
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15 Changing the world of VIP conferencing 16 Human Resources in the Hospitality Industry: the state of matters 26 Family business in Gozo expands beyond 29 Can we do without Air Malta? 36 Making ends meet at 3 star level 48 2016: another landmark year for Malta’s tourism 54 for Hospitality and Service: Seven Stages to develop a broad interpretation in Tourism 59 Green products and services for buildings and structures 61 an interview with the Ministry for Tourism: From 2002 to 2020 - levelling out the playing field 77 Hotel Santana - catering for leisure and business 78 MTA CEO welcomes German couple on their 86th visit to the Maltese Islands 81 It’s all about quality
Published by
82 Calendar of Events - 2017: an eventful year
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a member of
iMNG Ltd Peacock Buildings, 102 Testaferrata Street Ta’ Xbiex XBX1406, Malta Tel: (+356) 2010 7775 Email: info@i-mng.com Publisher, Art Director & Editor-in-chief Jason Attard jason@i-mng.com Technical Editor Tony Coleiro tc@i-mng.com
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© 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.
HOSPITALITY MALTA
from the Editor
Chev. Tony Coleiro
Looking for the right insurance solution?
the unique Industry that Hospitality is
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is no other industry I can think of as being like Hospitality. Its particularly strong emphasis on human exchange in the service delivery processes makes it vastly different from other sectors. I have often sought to understand the industry’s core by defining the word. In so doing, I have summarised the scope of the industry and its characteristics of involving both tangible and intangible features in the service delivery process, whilst exploring the stakeholders involved, mutual benefits generated and the industry’s impacts to the society and economy.
A contemporary explanation of Hospitality refers to the relationship process between a customer and a host. However, when we talk about the “Hospitality Industry�, we invariably refer to those organisations which provide food and/or drink and/or accommodation and/or any other service to people who are “away from home�. But this definition too only satisfies most situations. Broadly speaking, Hospitality is that act of kindness in welcoming and looking after the basic needs of strangers, mainly in relation to food, drink and accommodation. This, I feel, is the base pillar of what we do. Yet, it is the one which is most often overlooked.
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In this industry, financial performance is as driven by the front-line worker as it is by their top brass.
this is what Hospitality Malta aims to be an intrinsic part of: - leveraging knowledge from Malta’s successful Hospitality entrepreneurs and workers alike - from all sectors of the industry across its entire strata of levels – to bring forth that which is vital, successful, wanted and needed
We seem to be forgetting that the ARRs and GOPPARs and their ilk, by which we are today perforce so obsessed, are not solely the results of the efficacy and ingenuity (or lack thereof) of the management team.
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They are indeed intrinsically tied to the quality-value of service provision being given by the service provider to the market sector in question. And this is affected by the front-line workers as much as it is by the top brass. Perhaps this, then, is what drives Hospitality to be so unique. And this is what Hospitality Malta aims to be an intrinsic part of: -leveraging knowledge from Malta’s successful Hospitality entrepreneurs and workers alike – from all sectors of the industry across its entire strata of levels – to bring forth that which is vital, successful, wanted and needed. I would like to thank those organisations, entities, entrepreneurs, academics, business connoisseurs and hospitality professionals who will be supporting Hospitality Malta via their adverts and by allowing us to pick their brains. They will be enabling us to accomplish our primary objective of promulgating the ability to provide the highest standards in hospitality to Malta’s guests. Those readers who will be granting the publication their undivided time also have our gratitude. Expect wonderful things from us, and do enjoy your first read of Hospitality Malta.
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from the Minister for Tourism
the Seventh consecutive year
of record growth
I
t
is indeed a great pleasure for me to pen a foreword to this publication. I would like to start by commending the publishers for their decision to dedicate the appropriate attention to issues relating to the development of Malta’s tourism industry, being the fundamental pillar of these islands’ economy. Malta has been enjoying an uninterrupted period of year-on-
year growth in tourism since 2010, and we are pleased to note that 2016 has actually been the seventh consecutive year of record growth for our tourism industry. During this period, we have increased volumes, overnight stays and expenditure, extended the ‘tourist’ season, widened our motivational base, and achieved growth from a healthy mix of core, secondary and new source markets.
The full year results of 2016 point to the arrival of just under 2 million tourists, who are expected to generate 14.8 million overnight stays, and an aggregate expenditure of €1.66 billion. This means that until the end of this legislature half a million more tourists would be visiting Malta. This contrasts greatly with the increase in inbound tourists during the last legislature of previous government as the increase reached only 200,000 tourists.
The Hon Minister Dr Edward Zammit Lewis HOSPITALITY MALTA
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Throughout these past four years, Government has ensured the creation of a political, economic, social, and legal environment which clearly enables hotels, restaurants and other private sector stakeholders to be more competitive
Meanwhile, towards the end of 2015, the number of full-time employees in hotels and catering establishments had reached a figure of nearly 11,000, equivalent to 6.3% of the gainfully occupied population. This equates to an increase of almost 500 new jobs created in 2015. It is pertinent to note that the tourism sector also employs around another 10,500 people on a part-time basis where, by the end of 2015, the number of part time jobs had also increased by some 600. To these, one should also add new job opportunities created in other sectors intrinsically linked to tourism, such as transport, trade, entertainment, cultural services, and various other economic activities that benefit
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from tourists’ expenditure on the islands. Throughout these past four years, Government has ensured the creation of a political, economic, social, and legal environment which clearly enables hotels, restaurants and other private sector stakeholders to be more competitive and, therefore, be able to grow which, in turn, led to further investment and employment, and to an improvement in the general quality of life of the local community as a whole. We are well aware that tourism is a highly complex and volatile industry, constantly subject to, and highly impacted by, changing
consumer trends, technological evolution and the ongoing emergence of new business models. Given that tourism is one of the key drivers of our economy, we need to ensure that this industry adapts to the ever evolving environment and world trends, in order to maintain a leading edge and remain successful. Since the present Government was elected to office in 2013, we have implemented a series of targeted measures which have further solidified the competitiveness and the sustainability of tourism in Malta. There is no doubt that the 2014 reduction in electricity tariffs greatly enhanced the competitiveness of our collective accommodation sector.
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Measures to further simplify the licensing process while also strengthening the enforcement of regulations are reducing the bureaucracy that tourism operators face.
Meanwhile, we are reducing the bureaucracy that tourism operators face, that includes measures to further simplify the licensing process while also strengthening the enforcement of regulations within the sector. We have also been pursuing energetically the enhancement of the concept of quality along the entire tourism value chain, particularly through a programme of productimprovement initiatives. Furthermore, air connectivity remains one of our foremost strategic priorities and is an area which has also delivered very positive results, thus facilitating our market reach and opening new mar-
kets for the Maltese island. Since the beginning of this legislature, routes to 22 new cities were introduced. These were cities that had no direct connection with our airport. These new routes are all still in operation and the figure do not include services given by different airlines in same route. There is also no doubt as to the growing importance of the cruise-liner market within the context of our tourism industry. During these past years, this sector has produced impressive growth both in terms of cruise passengers, port-of-call visits as well as the burgeoning home-porting sector.
I am convinced that Malta’s tourism competitiveness can only be sustained if growth is accompanied by a parallel development of our human resources. To this end, we are constantly engaging all employment-related stakeholders to secure their ongoing commitment towards measures designed to enhance the working conditions and the professional quality of all those working in tourism. Here, the role of the Institute for Tourism Studies (ITS) will continue to prove critical towards achieving these objectives and we have many open ongoing initiatives to this end. The new stateof-the-art ITS campus investment proposed at Smart City will bring into practice the commitment to provide the tourism industry with a well-prepared, professionally educated and highly trained workforce. The campus, which also includes a hotel, is planned to be fully functional in 2019. Evidently, Government’s endeavours within the tourism industry and its affiliated sectors, and the positive outcome of its policies, are but a reflection of a successful collaborative synergy between all tourism stakeholders that we worked so hard to achieve. This synergy is key and continues to be a determining characteristic of our industry, while it further boosts our resolve to pursue our strategic objectives with even greater intensity and confidence in the years to come.
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Feature
Changing the World of VIP Conferencing “There’s nothing like it in the whole of Europe…perhaps even in the whole world…” explained Alfred Spiteri, the mind behind this unique creation. Take a moment to visualise unique luxury, coupled with the best in conferencing technology…and then add to it the fact that it’s all combined in a state-of-the-art super double decker! It’s officially called the Diamond Lounge Limousine – a name which is synonym to the uniqueness of this super luxury vehicle. Like a Diamond it shines inside and out, and everyone that gets to experience a ride on this beauty, can vouch for the exceptionality of the experience. The vehicle has been created to host any kind of event, and meet the diverse needs of VIP clients – making sure the experience is one to be talked about for months after. Versatility is its strong point – imagine being able to discuss important business proposals, while at the same time enjoying a change of scenery and well deserved coffee breaks in locations that will awe the customers.
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The idea is the brainchild of Alfred Spiteri and his family, who run Garden of Eden Ltd, a company whose name and reputation is synonymous with transportation in Malta; and they are now taking transportation
to a whole new level. No longer is it just a means to go from point A to point B, but an experience that will change the way people look at short distance travel. Alfred Spiteri continued to explain that the Diamond Lounge Limousine “is a novel concept to the Maltese Islands, and it can really transform one’s event into something unique. Eye to detail has been on our agenda from the first day of the project and we have created a double decker coach that is full of luxury, both in terms of design and features that will change your event around into a more memorable one. Add to it the fact that clients are no longer stuck in a dull meeting room, but can now choose any destination in Malta and Gozo – coffee breaks will never be the same again. The Coach also offers total privacy on both levels and is suitable for both leisure and corporate events. We take pride on being flexible.”
For more information contact Garden of Eden on (+356) 2167 6756 or at info@diamondlounge.eu
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Human Resources in the Hospitality Industry: the state of matters by Calvin Cassar
According to information reported by Eurostat (October, 2016), Malta has maintained the leading position with regards to hotel occupancy rates when compared with countries in the European Union, with this being the case for the third year running, and covering both summer and winter periods. The tourism industry is now contributing to roughly 15 per cent of the country’s gross domestic product (GDP) and we have seen the total number of tourists visiting the country increase year on year since 2009 (this drop being linked to the global recession) to the point where the influx has now surpassed the 1.6 million tourists annually. Figures relating to the state of matters in relation to the hospitality industry point a positive picture, with future figures being expected to be on the growth side. In reviewing such rosy numbers, it might appear surprising that challenges to the sector in the near future will possibly be arising from areas relating to human resources. ‌ Or is it?
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these past months some worrying indicators have been reported. In June 2016 Identity Malta and ETC (now Jobsplus) confirmed that they would start welcoming applications for waiters from third country nationals (TCN). With rising demands for labour during the summer period, hotels and general operators in the hospitality industry are finding significant challenges in staffing their seasonal operations. Traditionally, entry level roles within the hospitality industry during the summer period would have been filled in by students who would look into getting some earnings and work experience in the same instance. The lure however seems to be fading, and students are increasingly looking into taking roles that mirror closely their future career ambitions, or in participating in learning opportunities locally
or overseas. The perceived value of the summer job appears to be dwindling and this is creating a significant gap in human resources availability. A major challenge resulting from the employment of third country nationals in client facing roles, relates to what can be described as an attrition in the ‘local’ experience for holidaymakers. The National Commission for Protection of Equality (NCPE) allows the possibility to employers to advertise and recruit for select positions using ‘discriminatory’ criteria when looking to employ persons within a context aimed at building a set experience. Thus a Chinese restaurant may opt to advertise a vacancy for Waiter and listing Chinese nationality as a required criterion. Local hotels and restaurants may at a point be called to consider this option in advertising and recruiting, particularly when looking at building a ‘Maltese’ experience for their clients.
While the above indicators point towards the challenge in attracting summer workers in the field of hospitality, the challenge becomes even more significant when looking at employment patterns relating to permanent positions and/or more senior positions. At a policy level, a significant push has been made in the past years to promote key areas such as finance, information technology, i-gaming and nursing, with however less consideration being offered to career paths in hospitality. The Institute for Tourism Studies (ITS) has recently been in press following the decision taken to relocate its operation from St. Julian’s, a current tourist hub, to Kalkara, a site with future potential. It remains to be seen what form of impact this will have on currently enrolled students (once the move takes place) as well as on the decision of future students to enrol in the courses offered by the institute.
Once a tourist has made his or her way to the island, the ‘Maltese’ experience will be in influenced by the human resources offering the services.
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To date, ITS has stood as one of the major, if not the major source of development of local talent for the industry so sources of direct influence on the institute should be monitored with caution. Developing and attracting talent represents a major challenge however this is also mirrored by an equal one in relation to the retention of talent. Whilst it is difficult to obtain hard data on the matter, anecdotal evidence points to a talent drain being experienced in the area, with persons who have studied and trained in hospitality, opting
to move out to other areas after a number of years in the field, having experienced the challenges associated with the working hours, set demands and general conditions being offered. Gerrow (2011) suggests that the average salaries within the hospitality industry are lower when compared to financial services, health and social care, as well as public administration. Aside from pay however, emerging professionals tend to fail to see career paths available within the industry or are not communicated these by their managers and/ or employers.
Addressing the Challenge In order to function effectively, the tourism industry will need the infrastructure that is being set up as well as the marketing push in setting up Malta as a destination of choice, which is being well managed at policy level. However, once a tourist has selected Malta and made his or her way to the island, the experience will be in large part influenced by the human resources offering the services. Inadequacy or unavailability will lead our country to start losing the gains made with such effort in the past years.
People who have studied and trained in hospitality are opting to move out to other areas after a number of years in the field.
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In order to arrive at valuable results, ... The hospitality industry needs to be given once again its value and recognition at all channels
So what can be done to actually improve the situation? In order to arrive at valuable results, efforts need to be concerted and coordinated from policy level, down to employee level. The hospitality industry needs to be given once again its value and recognition at all channels. While opportunities do exist in other fields, the hospitality industry will continue to require key personnel at all levels, from unskilled onto specialist. Students within the educational system should be made aware of this from a young age, in much the same way that financial ser-
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vices companies are reaching out to youngsters in order to allure them to the field and to their own company. From a company and human resources perspective, effort needs to be made in order to address challenges linked specifically to the hospitality industry. Most persons working within the field will generally accept the need to work on a Saturday, a Sunday or a public holiday, but not having respite on these days over a prolonged period of time, amongst other issues and stressors, will lead to burnout and eventually to drop out.
Hospitality has called for flexibility and initiatives such as the 2012 legal notice allowing the possibility of bunkering of hours from less busy periods onto more busy ones has in large part catered for this need. However, the industry should in turn realise that competing industries are increasingly offering flexibility to their employees, through initiatives promoting work-life balance and employee well-being. While not all initiatives will be readily transferable to the industry, consideration should be given as to how employees can be engaged and retained, over a period of time.
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Some reports have indicated salary disparity across industries, with this being a factor which is leading Maltese nationals to opt for alternative roles, in alternative industries. Having said this, salary is not generally the all-determining factor leading to attraction and retention. Companies and management should look into engagement in a broad manner, and look into how it is possible to incentivise employees through learning, training, role development and empowerment amongst others.
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Employees should be ‘engaged’ in a broad manner; incentivised through learning, training, role development and empowerment.
Roles within the hospitality industry can be challenging and as a result consideration should be given as to how these can be addressed through the available human resources (thus for example, opportunities for promotion or for career advancement could be presented to internal employees prior to or concurrent with external advertising).
Conclusion The hospitality industry presents an interesting challenge, in that it is increasingly offering work opportunities, whilst at the same time these are not being automatically taken or picked up. As a result, it is in the interest of stakeholders to take a proactive stance in such a way as to attract and retain talent in the industry. Failure to achieve this will lead to a deterioration in the service being offered, which will in turn lead to a loss in the present opportunities. Progress will not result through a wait and see approach but will rather call for a conscious and deliberate effort by all the stakeholders.
References
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• Camilleri, N. (2016). Third country nationals free to work as waiters due to market shortage. Retrieved from http:// www.independent.com.mt/ articles/2016-06-30/ local-news/Third-countrynationals-free-to-workas-waiters-due-to-marketshortage-6736160245
• Eurostat. (2016). Tourism statistics: Winter season occupancy (http:// ec.europa.eu/eurostat/statistics-explained/index.php/Tourism_statistics_-_winter_season_occupancy) • Gerrow, J. (2011). Wages and Benefits. Retrieved from http://www. expat-quotes.com/guides/malta/ jobs/wages-and-benefits.htm
Calvin Cassar is Human Resources & Administration Manager at Mizzi Motors Limited. He has particular interest and expertise in recruitment, assessment and quantitative analyses having gained exposure in these through academic as well as work experiences.
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www.ilink.com.mt • F/ilinksystemsmalta Hardware • So�ware • Support 24 Q1 | 2017 info@ilink.com.mt • (356) 21 573888 • 12 Triq Toni Bajada St Pauls Bay HOSPITALITY MALTA
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Feature
the short sea channel that separates Malta and Gozo but reaches any corner of the world…..from Saudi and Dubai to Ireland and Austria, even Germany and France, right down to Reunion and to most of the North African coast. That I was proudly shown personalised hotel room folders which were produced for The Ritz Carlton of Riyadh, Saudi Arabia, and items carrying logos of market-leading firms from London’s Regent Street; is testament to the quality and depth of their reach.
family business in Gozo
expands beyond Nanna Carmela and her daughter Maria would never have imagined what their first entrepreneurial steps would lead to when they set up in business together in 1965. One might have been tempted to term it as a cottage industry but in reality it was a far more courageous and challenging enterprise; it took giant steps to evolve from being a simple glove-making industry into an international player of quality, hand-made products..
M
ary
is still seen hovering around the business she founded - The Leather House, in Gharb, Gozo - although it is generally now run by her sons David and Rodney who have helped gain further recognition for it as the leading local manufacturer and supplier of quality leather goods which are also very sought after abroad. Rodney Debono, The Leather House’s production and design director with responsibilities for customer relations too, takes time to discuss with me the delicacy of the hot foil work and of the embossing (and
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debossing) work that each handmade item displays. It is obvious that for Rodney this is not just a job but a whole way of life. He is soon off to oversee the shop floor where all these products take place. He believes that each job has to be done with the maximum of precision and passion to reach their clients’ standards. Even the little things as the stitching and the colour of the thread go under the microscope. This is the kind of attention to detail they put into their work every day. His brother David is, in a way, the negotiator and very ably wears the sales and marketing director’s hat…. David’s responsibilities go far beyond the markets across
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The Leather House is very market-oriented and therefore is customer focused too. For them, quality is prime but that does not mean that the price has to be astronomical. “We appreciate the importance of keeping our prices at a very affordable level” explains David. “One cannot easily raise prices and expect to remain competitive when one’s very own customers’ financial spendings are often curtailed by their own financial pressures - which may push them to cheaper quality solutions rather than going for the quality they really wish. We try and make this happen for them” he said. They are equally adaptable to customer designs and requirements, and are willing to work with clients’ designers or else to provide the creative side themselves. He shows me a restaurant menu that feels like a very expensive item indeed yet when told the price I am impressed…. But not as much as when I realise the extent of their creative slant in the work process – for what I was holding in my hands was a menu cover for a leading local fish restaurant where the spine is actually covered in fish leather! “I don’t believe it” I exclaim. I was then shown other samples of fish leather made from salmon skin, from perch and other marine species. David adds that they are very ecologically and environmentally conscious such that they will therefore not accept to take on orders to work with leather from any protected species, no matter how lucrative the prospect might be. “We are here to serve the customer in any way possible but that does not mean that we have to put aside our beliefs and values” he adds, continuing
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One cannot easily raise prices and expect to remain competitive when one’s very own customers’ financial spendings are often curtailed by their own financial pressures
that they are prepared to take on any job, of any size, in any colour, and with no minimum quantity order. “This makes us very competitive, especially overseas” he explains, where minimum quantities are stipulated. Sensing that we were getting to the end of our interview, I asked what sort of products would they list which might be of interest to readers of Hospitality Malta. David smiled and replied “Everything they need!” but at my further prompting he volunteered to tell me that they can supply all types of food and beverage menus – anything from placemats, coasters, cigar holders, and trays….. adding that for conferences they supply table mats suitably monogrammed, conference folders (which can be as individually personalised as needed and in any size, A5, A4, A3 etc), or even key fobs with clients’ logos or names. “We also provide in-room hotel directories and menus, cloak room and room key-chains with logos,” he added. So where do they go from here? David volunteered the (obvious) answer: “Who knows where we will be in the future? But whatever we will be doing you can rest assured that it will rely on the in-house operation that we have built since we were set up over 50 years ago. And this is how we will continue. We will remain affordable for all types of client markets while offering great quality, with matching follow-up and customer care. And we’ll still be enjoying ourselves!” Further details on The Leather House are viewable from their facebook page https://www.facebook.com/TheLeatherHouseOnline, and they may be contacted via email at theleatherhouse@gmail.com
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Can we do without Air Malta? The airline names keep rolling out at very regular intervals…. AirBerlin, Ryanair, Lufthansa, Alitalia, EasyJet, KLM, Air France and so many others….. and the suggestion mooted in some quarters seems to be that with all this traffic we can probably do without Air Malta. We asked Air Malta’s Acting CEO, Mr Joseph Galea, the million dollar question: Can Malta’s hospitality industry really do without Air Malta? HOSPITALITY MALTA
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hilst
Mr Galea is fully aware of the complexity behind transforming Air Malta into finally becoming the constantly sustainable unit that it deserves to be, he also sees this as a most exciting time which gives Air Malta the chance to consolidate its position as the national airline of the Maltese islands and to structure its solid growth pattern for the next years. So can we do without the airline after all? His reply was crisp and clear: “No, we cannot! Because today we have control over our destiny since we are not dependent on foreign carriers who are only led by commercial interests.” He feels that in the case of our national carrier, all too often the social needs of the country came before its business or commercial needs. This differs from some of the other airlines who service Malta and with our own concepts although some other national carriers do tend to give their own country the priority it requires without forgetting the commercial side. As examples he mentioned two different airlines - Austrian Airlines, which looks towards its own country, and Ryanair, which concentrates on catering for its shareholders’ interests. Looking back at the historical development of the hospitality industry Mr Galea underlined the reliance on Air Malta to get tourism on its feet in the past. Apart from the obvious UK, Italy, Germany and France destinations, “certain other routes we take for granted today were actually introduced and developed by Air Malta, “ he said. In Germany, for example, apart from Frankfurt, Air Malta opened up smaller airports to travellers such as Dusseldorf and Berlin, and it did the same with other regions in the UK and Italy. Their success was then copied by other commercial airlines that followed suit.
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Air Malta...is the national carrier and therefore must support the efforts of all the country
Schedules Mr Galea pointed out that the schedule of services which Air Malta operates isn’t all that effected by seasonal fluctuations, unlike those of some other airlines who see fluctuations between their summer and winter months. Nonetheless, Air Malta has always been there to service and support the efforts of the hospitality industry of these Islands.
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“But don’t solely look at the value of Air Malta from a tourism point of view,” he commented, “because it has other roles to play - such as that of the exportation and importation of goods. In fact not many airlines are willing to take cargo on board. They suggest that that is the work of the freighter airlines but Air Malta doesn’t look at it in the same way, simply because it is the national carrier and therefore must support the efforts of all the country.” Mr Galea commented further by pointing out that one must always look at the passenger mix - clients may be on leisure trips, others on business ones, travelling for study, travelling in groups or may be there because of incentives; and yet others are passengers who are travelling because they require medical treatment and for these Air Malta has invested to be able to carry stretchers and incubators, which other airlines do not consider.
“one must always look at the passenger mix”
“This is really what Air Malta means to the local community” he said. But let’s look closer at the hospitality industry which is our ken. Mr Galea pointed out that “Air Malta’s model caters for tour operating clients, for allocations, commitment and guarantees. It is also geared to cater for the individual client through its website and services. We have a call centre and a sales office at the airport. We offer all sorts of incentives to help facilitate the needs of different operators with group pricing, with customisation of seating so that head-rest covers can also have their logo if they so wish, or for some specific announcements on the flight PA system. Air Malta also handles charters and works closely with charter operators to organise specific itineraries” he said, adding “We are flexible.” Air Malta and the tourism industry have been linked together for a long time. “Intrinsically we have been tied together and we have always been there for our tourism despite the competition come rain or shine,” said Mr Galea. He added that should something go wrong for the hospitality industry - and other airlines indeed pull out to focus on more profitable availabilities instead, the Malta tourism market will still be able to count on Air Malta for its support and backing.
Making Malta reachable When one looks at the world map and thinks of people in far away countries who may be trying to decide where to go on holiday, one selling point for Malta against other locations is accessibility. And price, of course. Mr Galea explained that there are also some routes which are beneficial to the country and not to the airline, and Air Malta has continued to service nonetheless. How so? I asked, somewhat sceptically: it seemed to me that a flight only becomes unsustainable when it does not collect sufficient passengers to allow profitability against the high cost of the trip and to sufficiently match shareholders’ expectations.
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NEW SHOWROOM NOW OPEN on Old Railway Track, Santa Venera (In front of the MITA building) tel: 2147 2241 www.bridgepoint.com.mt
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The Maltese Government will continue having the controlling share of the airline.
But there’s more to it than that. Mr Galea explained that airlines counter the elevated cost of a longer flight by raising the ticket price. But this can only happen until a saturation point beyond which the traveller will not travel, as the ticket price would be too expensive. Once the ticket price is unsustainable, airlines simply shift the route to one wherein profit can be maximised. At times Air Malta sacrifices this devotion to profitability for the sake of bringing more business to Malta. Economies of scale too kick in to the detriment of smaller airlines. “One must not forget the market levels as well for certain routes since if a particular route normally sells at a particular level it is useless for us to sell it at a higher level and expect it to be financially successful” he said. In Mr Galea’s opinion, those travellers who are coming to Malta for the first time would probably have considered other destinations at the same time as when considering Malta, and so our level of competition has also to be at an incentive-level otherwise it just won’t work. “Travel doesn’t happen at any cost… or at least not generally so!” he said. The client therefore will be weighing a lot of elements – the feasibility of flying to Malta, the timing, frequency, accessibility, comfort, cost…. “so one has to be within the market parameters all the time. We are in a very competitive environment, tourism and airlines also operate within a highly regulated environment so if you are not within those parameters you immediately lose out” he said. The Air Malta Acting CEO explained that the airline will always be there to support the local effort, whether in tourism or otherwise, and this is predominantly thanks to the fact that the Government has the controlling share of the airline. “It will continue to have this control” he insisted. Mr Galea continued explaining that “as things stand today, Air Malta is supplying 40% of the market.
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Latching Malta to the world In the tourism policy that Government is working on, Air Malta has a role to play. Mr Galea explained that one has to keep in mind that the national airline was not only a point-to-point airline, such as some of its low cost competitors are, “but we have alliances and collaborations with other leading airlines – such as KLM and Air France - through which we can offer air travel and connections to any part of the world. Lufthansa, Emirates, Etihad, KLM and Air France for example have great networks and we can benefit from our collaboration with them. You can go to America, Asia or Australia through us. Due to our connectivity one can actually see the whole world through us.” Surveys that have been held by third parties clearly show that the airline’s proficiencies are well respected by the traveller, local or other. A very high percentage – nearly as high as 90% - indicates that Malta needs Air Malta even though some travellers are also happy to even choose to fly on the cheaper airlines. “But they know,” insisted Mr Galea, “that as a country we do not want to be 100% dependent on foreign airlines. The Maltese people know this and accept it. They know that Air Malta sometimes goes to the extremes to give a service.
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“There is nothing that carries the pride of Malta to Europe as we do at Air Malta. Our logo, with the eight pointed cross, is a recognisable emblem on the tarmacs across Europe and it sends out an unmistakeable message to people that Malta is there. Do we want that all this disappears completely? I, for one, definitely do not want that to happen. We are so small that people tend to forget us but being in Brussels airport, in Heathrow or anywhere else in Europe and the Air Malta plane gives us all a sense of pride which nothing else can” said Mr Galea.
The Future “Strategic partnerships are the way forward” underlined Mr Galea, and this because that is how the airline industry has developed throughout the world in recent years. These partnerships help the airlines to go forward. “Even larger airlines have this kind of partnership let alone a small airline like ours with a handful of aircraft,” said Mr Galea. The Acting CEO explained that the role of the strategic partner is not only for the investment. “A strategic partner will give you the network. What we are finding is that the pressure on yield is so strong that you need to continue increasing your passenger numbers significantly to counter the drop in yield,” he explained.
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A network that is feeding you with passengers will be the boost for the airline since the network could be made up of a number of other airlines all with their own clientele and all trying to sell seats around the world. “They would therefore also be selling our seats for us. And this can be a significant boost for Air Malta,” he said. This will also help Malta to become stronger, to become a better destination for holidays, and ultimately it will lead to growth. What Air Malta is trying to do at the moment is to give the client a destination experience from the moment he books to the moment he boards on to disembarkation. Mr Galea explained that through this their call ‘We Care More’, “We try to take care of any adjustments the traveller needs, how he gets to the airport, when he’s on the aircraft, whether he has any issues on arrival possibly even extra luggage, we try to give him a total experience. We don’t call passengers as such any more but we refer to them as guests because when you have a guest at home you tend to go out of your way to make their stay as comfortable as possible. Air Malta wants to give a good experience all round. A full service. We want to be more human in our approach. Travelling is after all an intrinsic part of the human experience,” concluded the Air Malta Acting CEO.
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making ends meet
at 3star level by Lino Cremona
Those who have been in the business for some time argue that sustainably operating three-star hotels is a very difficult endeavour indeed; the category shares many of the elements encompassed by the higher star categories without the economies of scale which facilitate the coverage of the costs in question. An example of this is that, rightfully enough, all categories must adhere to the same levels of health and safety. So how do 3-Star hotels manage to make ends meet?
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major difference between the 3-Star and the 4- and 5-Star hotels – perhaps in favour of 3-Star hotels – is that management is smaller in size and therefore leaner and meaner in responding to client needs and situations in general. The role of a 3-Star manager is typically far more hands-on than in a higher level Star hotel, where one would have assistants or more staff under him/her to help in the daily responsibilities. The 3-Star manager therefore has more opportunities of working more closely to the core of all projects (which quickly become one’s “baby”) being implemented. All hotel categories must adhere to the same levels of health and safety.
Are our 3-Stars competing on quality or cost? The answer is likely to be both. It depends on how the market is flow-
Some 3-Star hotels benefit from a marketing manager who looks after contracting with operators but it is more often than not the hotel manager who personally gets involved in the negotiations and finalisation of sales agreements.
ing but the aim should be on giving quality and value for money. We're here to make money but ‘the nature of the beast’ sometimes allows you to compete only if you lower your rates.
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Room Rate Selling rates are another problem area. In 3-Star hotels the rate is somewhat dictated by the market rather than the classification, such that if the market is going well the rate is what it is but if not, then the rate has to be reduced so as to still offer an incentive.
Location of the hotel is also an important selling advantage. And the possibility to offer better quality as compared to other same category hotels gives one the edge to be able to sell at a slightly higher rate. In fact, some of the top local 3-Star hotels are actually offering 4-Star quality but selling it at 3-Star level, a matter which is appreciated by their guests. Ongoing staff training so as to be able to reach better standards goes hand-in-hand with this. It is only once a 3-Star hotel is brand-able upon these lines that the rate can be tweaked higher.
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Local 3-Star hotels are generally offering a higher quality than that found across Europe.
“Why is the rate of this 3-Star hotel higher than another?” The persisting argument with tour operators is that their clients do not know the difference between the quality of one hotel and that of another. For them the question is “why is the rate of this 3-Star hotel higher than another?” This clearly shows that the classification system needs to be looked at and improved. That the HOTREC classification system which the EU has put together is a benchmark for classifications – and this has already been taken up by Malta too – is an improvement. But more needs to be done. HOTREC sets the standards for the whole of Europe under which one
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can operate a hotel and what the classification expects them to deliver in terms of service and quality. Yet this harmonisation exercise needs to also be more nationally reflective, taking in more local requirements than it already does.
cation this becomes clearer when the market is at its lowest, what we call the shoulder period, generally November to early March. At the time of year occupancy starts dropping and the 3-Star hotels start really feeling the pinch. The reality of it all is that if in this period the 4- and 5-Star hotels lower their rates, then the 3-Stars too have to reduce theirs to remain in the running. Clients tend to reason on the lines of whether it is worthwhile going to a 3-Star hotel when a few Euros more can put them in a 4 star one. This is probably why in Malta the 4-Star hotels tend to do better than the 3-Star ones. And there are more 4-Star than 3-Star hotels in Malta.
Repeat clients often result from staff becoming friends with clients... inviting them home for
The local 3-Star hotels and the rest of Europe One can clearly see that the local hoteliers are generally offering a higher quality than their counterparts abroad. This is more so in the 3-Star level where a better product is being offered than that offered across Europe. But to understand the reality of the 3-Star classifi-
a family Sunday meal. These personal friendships are the result of having good staff and are very common but especially so in the 3-Star category where one needs to be close to the clients.
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But come summer the equilibrium of the balance is regained once again and everyone finds one’s place again. In other words, between April and October everyone will be selling at their established rates. A quick look at Booking.com or other online sites quickly confirms this point of view. Some of the 3 star hotels in Malta have a figure/level below which their rates cannot drop. This is not necessarily a question of profit but more so one of cash flow due to the commitments that one has undertaken. Some people believe they should never reduce their rate, that everyone should stick to the published rates, but the market or a specif-
ic period may demand a different point of view. In this scenario rates are more based on supply and demand and you have no option but to reduce. Obviously enough, some hotels have the strategy that their rates will be allowed to continue to drop even to selling at Euro 22 per room per day (as seen online from some operators) which really means a net income to the hotel in the region of around Eur8 per person per day. The hotel must take into account its facilities when factoring their minimum base rate; the heating of an indoor pool is an additional cost too. Similar 3-Star hotels which do not have this kind of overhead can be able to cope better with rate changes than others.
Those 3-Star hotels which do not incur overheads originating from an enhanced value proposition will find it easier than those which do to sustain drops in room rates.
Some 3-Stars run on a bed and breakfast concept so as to avoid the additional costs of having a full kitchen running all day whilst others offer breakfast and dinner only. Then there are those which provide a full restaurant service, coffee shops and other ancillaries 24/7. The amount of repeat business that one gets directly reflects this method of planning. Pricing cannot be put down on paper and simply left at that: there are far too many variables involved. At least this is how the 3-Star hotelier sees things. It’s all a question of supply and demand. Nonetheless the numbers are increasing all year round, and winter accommodation is now becoming more and more positive in the 3-Star sector. The summer months are, needless to say, highly positive.
Quality tourism and the 3-Star hotel When there was talk of implementing a quality image for Malta around the higher classifications the impression could have been given that the 3-Star category could be done away with. Although most agree to the concept of working towards a quality tourism level one must ensure that this does not mean to the exclusion of the 3-Star category. Hoteliers in this classification had good reason to be apprehensive,
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www.benna.com.mt
BennaMalta
The capability to sell at
dBistro Restaurant - Our Pizza, Pasta, Salads & Grills place. Serving the most delicious and fresh Mediterranean dishes in an indoor and outdoor setup overlooking the hotel’s main pool
istro
a (slightly) higher rate than one’s competitors in the same category is only achievable through the quality of service offered such that the client will then overlook the slight increase in favour of a better service.
TAGINE Restaurant - The Indian & Moroccan All-Inclusive Buffet that takes you through a culinary journey from Marrakesh to Mumbai and all the tastes, scents and aromas in between.
YUSHAN Restaurant - The Chinese & Asian All-Inclusive Buffet situated on the top floor of the db San Antonio Hotel + Spa, with breathtaking views of St. Paul’s Bay.
because the 3-Stars have their own specific market and should be able to provide their own in terms of quality too. For example some clients often see us as offering a more family atmosphere than 5-Star hotels.
The 3-Stars have their own niche market. We have to position the Malta product in a way that all categories are important for the client to choose from, and not to suggest that certain categories can be done away with. If the drive to quality tourism continues to grow and bring in visitors there will nonetheless always be a place for the 3-Star hotels, and, in the worst scenario, these hotels will still be able to maintain their market portion.
At the moment, the 3 star market is probably the strongest classification on the local market. And as the trend is developing, visitors who used to come here for one holiday of about 15 days are now coming back three times a year, each time for 5 days; with the net result that this is profitable for us indeed. The main thing is to ensure that the local 3-Star hotels are of the required levels, that the client gets the money that he/she is paying for.
be involved. This will, for example, ensure that a higher level of street cleanliness is maintained. At the same time one should look forward to increased seriousness on the Island in general such that if visitors are in Sliema they should not be allowed to go out into the streets in their swim suit but should be clearly directed to understand that there is a dress code for the beach and another for the promenade. Keeping up a standard is good for the general image.
One cannot not emphasise the importance for the authorities to also concentrate on the upkeep of certain strategic places such as Sliema and Valletta as well as the seashore areas because we all believe that increased cleanliness is not only a local council responsibility but one in which the central government should
Although client attitudes are the result of today’s laissez faire culture nonetheless there should be a balance to get the best of both worlds. The upkeep of the country should be everyone’s priority - in the summer peak season there should be a better cleanup effort by the authorities concerned.
Clients often perceive 3-Star hotels as offering a highly familial atmosphere.
Bookings on 2158 3434
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Staff shortage By far the Maltese person is a hard worker and is very conscious of his/her responsibility to do a good job. But we can’t find enough staff. Is it a salary problem as some suggest? Probably not. More likely the major problem is the way the industry works, and the difficulties that the job itself ties staff down more than other jobs. Longer hours especially in the evenings, weekends off, working on holidays or festas are more likely to be the deterrents. There was a time when University students would work the summers in hotels giving the additional manpower needed but this too has finished as they are now finding summer jobs in their own areas of specialization. Though there are not enough trained locals for the amount of jobs available, one also notes that the third country nationals who are willing to work in local tourism are not themselves trained enough. They may have a language problem (especially the Italians and French whose level of spoken English is not good enough). Although we can teach them to be a waiter, barman there isn’t much we can do to improve their English. Nonetheless, one keeps employees by investing in them, in their conditions of work, in their training for which they are appreciative.
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Management’s approach in their regard is also very important, as are all kinds of efforts to generate social and team building activities that create a family feeling. Good staff or those with good potential are always worth looking after but a lot is dictated by the experience that one’s CV indicates. Staff poaching is also mentioned and this clearly exists in hotels and catering establishments. But this is sometimes the result of the shortage and the aspirations of the hotel to reach their goals. If a professional person, already trained, presents himself/herself to the hotelier asking for a job, the likelihood is that because of the applicants preparedness and training that hotelier would prefer to pay something extra and save the hassle of going through all the training process to bring them up to scratch to give the service one would require. The staff are the tools we work with. The better they are the better our service.
of. Helping a tourist means that we are in a way giving a helping hand to the whole tourism industry because in some way or other we are nearly all involved in the industry when seen in its widest perspective. We are a hospitality country and it is probably the main source of the nation’s income, directly or indirectly. The tourist viewpoint, especially those who are repeat visitors, does indicate that something is beginning to go wrong - we are losing out on the element of hospitality as a nation; they see this more in the younger generation. It is vital that we be collectively devoted to the hospitality industry.
Are we losing the customer after all? A fitting conclusion should be to ask ourselves as a nation whether we are losing the client when the visitor goes out of the hotel. In other words, are the Maltese still cordial and welcoming as we say we are? This is an aspect of our culture which we should never lose sight
Lino Cremona has been running various 3-Star hotels in Malta as General Manager for the past 25 years. He is presently the General Manager of The Plaza Hotel, Sliema; a position he has held for the past 12 years.
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From the MTA Chief Executive Officer
2016:
Paul Bugeja
another landmark year for Malta’s tourism The positive results achieved in the Maltese tourism sector this year are the fruit of the work of many. The Malta Tourism Authority is proud and pleased to have worked ceaselessly, together with the Ministry for Tourism, with key industry stakeholders and with other private and public entities, to have made 2016 another landmark year for tourism in this country.
I
n
reality, no single year can be viewed in isolation. Although it is convenient and practical to split activities in annual intervals, comparing one year over the preceding one, it is always a continuation of what happened before. One is building on top of what one has achieved in the preceding year, and the one before that.
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And whereas it is true that a successful year is worth celebrating, a series of successful ones denotes a positive trend which is even more worthy of commemoration. It is important to note, though, that nothing happens on its own and we need to continuously focus and work hard to achieve improved results year on year. The challenges become bigger the more we achieve.
The tourism industry in Malta has been reaping encouraging results for the past few years, and particularly so in the past three years, with 2016 reaching a record peak on a number of counts. This is leaving a positive effect not only on those sectors that are directly involved in bringing, hosting and serving our visitors, but also to the Maltese economy as a whole.
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Increased connectivity is of paramount importance for an island destination such as ours
2016 ended up attracting the highest number of tourists ever recorded, with August alone reaching a quarter of a million visitors. In fact, by the end of the year Malta received well in excess of 1.9 million visitors. Having more tourists also meant having higher demand for accommodation of all types and in all cat-
egories, both collective and non. Increased demand also lead to higher revenues generated from tourism inflows, both due to greater volumes of visitors and also to a better mix of higher spending travellers. This in turn meant that our hotels and other accommodation and catering establishments have been able to improve their margins. It is particularly encouraging to hear how many, if not all, of the hotels have been turning a profit in the low season whereas before it was almost inevitable that they would be losing money during the winter months. During this year, we have continued with our efforts to make our islands even more accessible. Increased connectivity is of paramount importance for an island
destination such as ours, and so we partnered with the Malta International Airport to attract new airlines to operate to and from Malta, whilst encouraging existing ones to increase their routes, frequencies and number of airports served. We are happy to note that together we have managed to obtain some very positive results in this regard, with MIA registering record performances in terms of volumes of passengers and with a number of airlines increasing their capacities not only in summer, but more importantly in winter. On the marketing side, we have continued to invest a large portion of our total budget to bring Malta to the attention of the travel trade and the travelling public in what is becoming an increasingly crowded and competitive marketplace.
MIA has registered record performances in 2016 in terms of passenger volumes.
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Although it is true that some competing destinations suffered setbacks due to geopolitical instability or other factors, this did not automatically translate into any advantage for the remaining destinations. It is still a matter of convincing potential travellers to choose one’s destination and being able to deliver. The results obtained in our key markets as well as many of our emerging markets attest to the fact that our efforts, coupled with those of our trade partners and the local service providers has bore fruit.
In the field of MICE, we launched Conventions Malta, an innovative concept aimed at promoting Malta to the lucrative meetings, incentive conference and exhibition sector, with particular emphasis on the association market.
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Without highlighting any one particular market as being more worthy of praise than any of the others, since each one has its own set of characteristics and potential, allow me to make just one brief reference to the US market. Considered by some to be a gamble due to distance and lack of destination awareness, this market has shown a propensity to grow and yield high quality visitors which makes us confident in its long term sustainability. As we prepare to make our first steps in another new and challenging market – that of China – we hope to be equally successful in tapping this long haul market for Malta.
to build on our past success, as an increasing share of our advertising goes online and the popularity of our social media channels continues to grow (on Facebook alone, we surpassed the 700,000 likes). On the product side, we have continued to develop our beach facilities, including those relating to accessibility, as part of our successful Blue Flag initiatives. With regard to maintaining and improving standards, 2016 saw an intensification in our Quality Assured scheme, with more restaurants, attractions and DMCs qualifying the rigorous tests for the coveted Q mark. On the licensing and enforcement side, we continued working on a new computerised licensing system and database, whilst expanding the number of inspections to ensure that the products and services of licensed operators are up to scratch whilst limiting the number of those operating illegally.
2016 has brought success and achievements in other fields. In the sphere of cruise business, we have seen increased volumes of passengers carried into Grand Harbour by a larger number of vessels. More companies are also using Malta to homeport, opening up the possibilities for flyand-cruise operations which leave more revenues for our islands than those visiting as a port of call. In the field of MICE, we launched Conventions Malta, an innovative concept aimed at promoting Malta to the lucrative meetings, incentive conference and exhibition sector, with particular emphasis on the association market. With regard to digital media, we continued
We also assisted in the launching of the Eco Contribution scheme which will be yielding positive results in terms of upgrading of tourism areas in the coming months. With regard to CSR, we partnered with MOT and a local radio station to carry out the ‘Making Malta Great’ awareness campaign to educate the general public on how we can all con-
The US market has shown a propensity to grow and yield high quality visitor.
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2016 saw an intensification in our Quality Assured scheme, with more restaurants, attractions and DMCs qualifying the rigorous tests for the coveted Q mark.
tribute to make our visitors feel welcome. A campaign aimed at safeguarding the Azure Window was also undertaken in collaboration with various NGOs, whilst a new educational TV campaign on the benefits of working with licensed accommodation is to be launched in the coming weeks. These are just a few of the things that have made 2016 a good year. A great year, if you will. But as we know all too well, 2017 is now with us, bringing with it a fresh set of challenges and hopefully, just as many rewards as those brought by the year that recently came to an end. I take this opportunity to thank you all and wish you a healthy and successful 2017.
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for Hospitality and Service:
Seven Stages to develop a broad interpretation in Tourism by Julian Zarb
The Oxford Dictionary defines Hospitality and Service as “Hospitality: The friendly and generous reception and entertainment of guests, visitors, or strangers. Service: The action of helping or doing work for someone.”
1. Understanding the concept of tourism.
2. Adopting a professional approach as a socio-cultural factor
Tourism has come to be simply a “number-crunching” exercise, a quantitative analysis, for Governments and Business Enterprises.
At all levels, today, we have a situation where people are being attracted to the tourism industry because of the economic gains; the perception that it includes relatively easy and unskilled work and the entry requirements for HND and Degree courses in tourism (compared to other sectors). Tourism is a profession which requires skills and knowledge like any other profession and it needs the commitment that other sectors require. From the service attendant at the local bistro to the CEO of a multinational corporation, tourism requires a positive attitude towards people; knowledge of service delivery and hospitality; and the vocational outlook that this is a career not just a job.
The very basis for success in tourism should not simply be to reach the bottom line and achieve high percentages as regards visitor arrivals. Tourism should be about promoting a destination which can attract the visitor who wants to be there rather than the one who happens to be there; whose only reason for choice was based on price and availability rather than an understanding of the culture, history and character of the destination.
3. Understanding the culture and character of the host and visitor by integrating with that community.
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history of these two functions has always gone beyond caring for and acknowledging the traveller or visitor to a country, town or village. This is a manifestation of mutual recognition by three key groups – the local authorities, the local businesses and the local community to acknowledge the effectiveness of
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those “Moments of Truth” referred to by Jan Carlzon (1989). Today we need to take an analytical view of the manner in which we practice these “Moments of Truth” in tourism. Are we really concerned with the tourist or visitor experience and opinion? Is tourism today simply an industry that generates immediate financial returns or do we still believe that it is about the host-visitor interaction? This
article will look at the stages of hospitality and service in the wider tourism activity (not simply as a factor concerning hotels and accommodation services). There are seven stages in developing an inclusive hospitality and service mindset for tourism as a socio-cultural activity, which will have a positive outcome on the socio-economic benefits for all the key stakeholders; these stages are:
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Tourism should be about promoting a destination which can attract the visitor who wants to be there rather than the one who happens to be there
Looking at the vocational aspects of tourism, one will realize that there needs to be a close affiliation between the host and visitor communities in tourism. Tourism does not exist in a bubble, an enclave separate from the local social, cultural, environmental and economic aspects of the destination. Tourism is a part of that same lifestyle as the host community enjoys, it is affected by them
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Tourism is a profession which requires skills and knowledge like any other profession and it needs the commitment that other sectors require
and it can effect them. There is no place for the “Them and Us” phenomenon that was so predominant in those destinations that promoted enclaving or separation of the tourism activity from local activities. 4. Developing synergies between these two communities that will enhance the existing relationships. Since this is a “people industry” then it is about relationships between people, it is about living with people, learning about new cultures and history. Appreciating cultures means that tourism is not about selling products but promoting experiences. Hospitality and service are two of these experiences, they are not products.
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If hospitality and service are experiences not products, then the measurement of quality needs to be different. 5. Look for quality in hospitality and service which is sustainable – that is, those aspects which will benefit the host and visitor. If hospitality and service are experiences not products, then the measurement of quality needs to be different. There is an abundant source of literature related to qualitative analysis for tourism today. Conducting continuous studies and reviews on Carrying Capacity and Impact Assessments are two methods for measuring the qualitative aspects of this socio-cultural activity.
6. Listen to the host and visitor to ensure a continuous process of review and monitoring. The most important aspect in considering the progress of any activity in tourism is to allow all stakeholders (authorities, businesses and communities) a voice. On the other hand, it is not enough to offer them this facility, it is equally important to transform that voice into effective action. There should be no top-down approach to con-
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sultation, it should be continuous and cyclical in nature. Most consultation exercises todate, on these islands and internationally have been subjective, authoritarian and superficial. They are simply a PR exercise rather than a sincere manner for developing a strong attitude to hospitality and service.
7. Be ready to change and develop. Change is imminent for one reason or another – whether man-made or through natural occurrence. Change is necessary to ensure that current trends, needs and requirements are addressed effectively. Change does not happen in a topdown or bottom up approach but through the interaction of all the stakeholders together. This article has sought to address an issue which has recently been very much underestimated in its importance towards a more sustainable tourism activity. Hospitality and Service need be treated as transversal skills that are there to enhance the human aspect of the tourism activity.
Julian Zarb is a resident academic at the Institute for Travel, Tourism and Culture at the University of Malta. His main areas of research and competence include Sustainable Tourism, International Tourism Development, Community-based tourism and local tourism planning. Mr Zarb is completing a doctorate in local tourism planning processes and implementation.
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an interview with the Minister for Tourism
Although Malta’s first steps into the tourism market date back to the early 1950s, one generally dates “modern tourism” to the legislation that was set in motion in 2002 to regularise tourism and travel in these Islands. Tied to these are 17 additional legal notices; subsidiary legislation in themselves. In its time, this legislation served its purpose. But so many things have since happened that one immediately notices changes in the market itself, in its players, visitors and stakeholders.
Hospitality Malta asked the Minister of Tourism, Dr Edward Zammit Lewis, how the proposed Malta Tourism Act everyone is talking about has been geared to radically revolutionise the industry and open the way to 2020 targets. HOSPITALITY MALTA
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reply was to the point: “We feel that there is now a need for a clear reformation of certain specific areas. In this way we need to address some of the areas which need to be looked at and propose modernisation or upgrading.” The Malta Tourism Act, the result of years of planning, will soon be presented in Parliament he explained, adding that it is anticipated that this will be by early 2017. Dr Edward Zammit Lewis expanded on the general ideas of the new Act by listing for us its three main areas of functionality. The first of these is BUREAUCRACY. To give some examples, he explained that it didn’t make sense that the Police and the Trade department are involved in the process to issue licences to outlets. This makes for a rather heavy bureaucratic situation and one that definitely needs looking into because it is ambiguous in what licensing conditions entail. “Our idea is to reduce this bureaucracy while also making the requirements clearer for the current stakeholders or for those wishing to be involved in it,” he said.
Parliament is addressing the need to regularise the new realities that have developed in the market.
Secondly, Dr Edward Zammit Lewis said was the need to SPEED UP the processing involved for the operators while keeping to the right standards of professionalism. Thirdly, was the need to recognise THE NEW REALITIES that have developed in the market. As examples he outlined the sharing economy and booking accommodation directly on-line (not collective establishments) needs to be regulated. Such as in the case of booking a Gozo residence because the owner is going to be away for some time. This kind of thing needs to be regulated. The same can be said for boutique hotels and B&B “for which we do not have any classification yet” he said.
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The same applies to the off-shoots within the entertainment field such as ‘Gentlemen’s Clubs’, which though we may try to hide them away are nonetheless proliferating in Paceville…. “and some with only a licence to operate a bar,” added the Minister for Tourism. “We are contemplating a specific licence for these so that such clubs will also be required to have to reach the required health and safety standards vis-a-vis their clientele’s safekeeping.” These were just a handful of ideas that make it clear that if one aspired to be a destination of excellence then one must realise also that in embracing these new realities, the all-round look at the market and its legislation would need to be upgraded. “Our aim is to continue to facilitate investment within the markets of tourism; to study the ‘how’ we are going to cater for these new realities and also the ‘how’ these new regulations will be enforced” he added. The Minister continued saying that “We have already made efforts where enforcement is concerned but I want to make it clear that our efforts go beyond the notion that we want to create some sort of a police-state.
Nonetheless one must admit that there is need for some more enforcement in certain areas. An example of this is how waste is disposed of by certain catering establishments. The implementation of waste separation on site and having contracts with waste collectors specialising in catering waste, are two points needing more attention which come to mind,” he said. These are just a few factors on how the full legislative process is to be prompting the overall upgrading of the tourism market, while also introducing some streamlining. Dr Zammit Lewis explained “we have already opened up informal consultations with stakeholders in the market to help us pave the way.” In this manner, the country will have in hand result-inducing feedback directly from the stakeholders.
The Bigger Picture Though collective establishments are an integral part of tourism, the word hospitality for many people nonetheless only brings to mind hotel accommodation. “The reality is wider. The bigger picture here
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is that tourists don’t only come to Malta to stay in hotels; but they come for other attractions and experiences too,” he explained. “We have seen an increase in those who also look out for holidays in special accommodation; in villas, farmhouses and apartments,” he said. “And we have also noted that some form of exchange accommodation is beginning to show up. This is obviously all good for the economy. These new trends will happen and continue to develop irrespective of any Government, as the world moves along doing things as it wishes. What we are after is not to stop trends but to regularise those who service them, so as to be aware of what is happening in the marketplace, and to remain in control of the product and the level of quality that is being given,” he said. This is the kind of enforcement that is being envisaged, “not one that will introduce controls on everything that goes beyond collective establishments,” he explained. When one looks at the inbound travel/tour agencies, one generally looks at the seriousness and reputation of the operator with whom one does business. Here there are difficulties to enforce especially because of the large amount of business that happens directly on-line. In that area there is little that one can do.
What we are after is not to stop trends but to regularise those who service them, so as to...remain in control of the product and the level of quality that is being given
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An insolvency fund is being established in order to better protect the traveller .
If on the other hand one were to look inward, at the situation from the local outbound agencies; licence holders with the Malta Tourism Authority, “I can tell you that as a result of a very recent breakthrough agreement with FATTA (an association representing local tour operators), we will be able to set up a much needed insolvency fund to protect travellers who have booked outbound package travel. This follows the introduction of the fund “on paper” through a 2009 legislation which was never implemented so far. This agreement will now give Maltese travellers the necessary protection and guarantees that if an operator goes into liquidation, their holiday-invested monies will be safeguarded. Dr Zammit Lewis added that in fact a solvency fund of Eur500,000 has now been set up for this very scope; to create a long-term solution for bona fide travellers. This will be on the same lines of those funds that other EU citizens in other member states already enjoy.
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The insolvency fund is clearly a creative and innovative way forward. Nonetheless Dr Zammit Lewis explained that “it is our obligation according to EU regulations in the package travel directorate that we have to ensure that the traveller has the necessary protection from the local outgoing agencies. It is innovative because it had never been done before due to disagreements within the industry itself. I have to admit that I had strongly insisted that since these EU regulations required us to implement them then we had to find a solution. With the help of the private sector, the MTA and FATTA, we were able to reach an agreement on how to protect the consumer and for the fund to be set up as required. And in any case, our consumers too expect this protection from us”. Interestingly, the creation of this protective fund can be copied by other sectors of the economy “which can learn from our experiences on how to implement protective measures in their areas, and which will therefore want to look at tourism’s learning curve with strong interest.”
Tourism Policy to 2020 In 2015 this Government set up a tourism policy, and a strategic vision which exists in all sectors too. In this respect, Gozo was given a separate highlight as it was felt that the sister island has a particular and different potential. Diving tourism, wedding tourism, rural tourism are all much stronger in Gozo than in Malta. Dr Zammit Lewis explained that this therefore required a different and distinct advertising approach to Malta. A number of other activities are also in hand, such as improving the connectivity of Gozo with the mainland, he said. But the Minister felt very strongly that it was not acceptable for him to note that after his/her flight of several hours, for a visitor to get to holiday in Gozo he/she needs a further 3 hours to get there. “There are a lot of good things that we’ve introduced but there is also this kind of stumbling block that slows us down.”
“This year we are aiming to reach the target of 2 million visitors to Malta.”
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Dr Zammit Lewis pointed out that last year “we registered 1 million visitors to Gozo - split between domestic and international visitors. This year we are aiming to reach the target of 2 million visitors to Malta. Figures are important because they give you an idea of where you are. Nonetheless these same numbers clearly show that the various tourism sectors are operating as they should and are earning revenue as well.
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Organic||Vegan Vegan||Lactose-Free Lactose-Free||Gluten-Free Gluten-Free Organic Even if visitors are of the low-cost category, they are still spending something in our country, the Minister opined. He clearly feels that irrespective of all the studies that are being done, tourism needs to see that the figures it is creating are being managed well, adding as an example that “in January’s 2015 we registered about 100,000 tourists, and in August we registered about 260,000.” The theory is that numbers can indeed be managed into a wider spread. He went on to explain that Gozo can suffer from seasonality more than Malta does. So it is not a question of saying that we have surpassed our saturation point - we need to acknowledge that these advances can be leveraged towards filling the lower months just as amply. “The infrastructural challenges are there and have to be addressed” stressed Minister Zammit Lewis. “We see the growth of medical tourism in Gozo to be an important input for the island, if not the one with the most interesting potential indeed. This form of tourism does not refer simply to hospitals but more so to the infrastructure and services that will fit around the hospital itself. This is a medium to long-term objective.”
April shoulder periods because the better we fare in this period the better the overall advantage for the country will be. “Let’s be fair,” he said, “if our arrival figures remain as those of May to September 2016, these are already in themselves good and satisfactory. In other words, the excess capacity that we have is probably between November and March.
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“Furthermore, next year we have the additional advantage of Malta’s EU Presidency and that can also come to our benefit in terms of numbers. As I see it, the 2 million tourist mark would still be reached with or without the Presidency advantage. But the Presidency could easily give some off-peak extraordinary figures in itself so one has to wait and see,” he opined.
“we have to re-think how to organise our transport, and we have to re-learn how to travel in our own country”
Four objectives beyond 2020 Looking at policies and strategies that will lead us to 2020 and beyond, Dr Zammit Lewis put forward his own vision. “I identify 4 main objectives, that are reachable and are not simply dreams for the coming year. And we must make an earnest effort to reach them,” he said.
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The first objective for him is obviously to reach that target figure of 2 million tourists in 2017. His second objective is to focus on seasonality, so that the number-crunching can be managed in a practical manner. The emphasis here is to fill the October to
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Congresses, cultural tourism, events tourism - these are all additional tools to reaching the intended goals. “And on which we need to work hard to reap their benefits,” he said. Dr Zammit Lewis explained that at the moment we are the least seasonally-dependant destination in the Mediterranean. Places like Palma de Mallorca see their hotels closing in the winter months. In contrast, most of our 4 and 5 star hotels are also registering profits in January which is a good development for the operators as well as for the employees, as this gives them stability and better work conditions. The third objective, he believes, is the need to work more on product Malta. Dr Zammit Lewis clearly sees Malta and Gozo as a gem which has yet to be fully polished and insists that “we need more organisation. We need more embellishment too. We need more cleanliness.” He explained that the Ministry was already working on creating certain synergies including those from a financial point of view, so that everyone will be working closer together for efficiency’s sake, to create more coordination and cooperation amongst the entities. “The tourism industry will also have the eco-contribution from the private sector as funds for its disposal” he added. This will directly fund projects requiring smaller investments, but which will nonetheless add to the overall effort and particularly so in strategic areas.
Dr Zammit Lewis’ fourth objective is the need to invest in human capabilities and resources. He explained that we must all recognise the fact that we need more professional people within the tourism industry. “It is a pity that for such an industry which is doing so well – and the resilience of this tourism sector is incomparable in our Islands – it is not managing to attract the young ones to be part of what it can offer.
Looking further around at other (possibly problem) areas in the country, Minister Zammit Lewis opined that if we were to be honest about things “we must realise that as things are, our infrastructure is incapable of fully supporting the level of tourism that we are now experiencing. So beyond tourism, for example, we also have to re-think elsewhere too…. For example we have to re-think how to organise our transport, and we have to re-learn how to travel in our own country” he said.
“I believe that the level of work involvement should go hand in hand with the compensation being offered to employees. Employers cannot hide behind the concept of seasonality as they did in the past because this doesn’t exist any more. At the same time our youth should be better able to appreciate the opportunities that exist in tourism and the high demand for specialisation that the industry is now requiring. Such incentives would surely draw them towards the industry” said Dr Zammit Lewis.
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“our youth should be better able to appreciate the high demand for specialisation that the industry is now requiring.”
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He did not shirk from his responsibilities in this scenario and added that the authorities share the responsibility of explaining to these prospectives the advantages of working in the industry and to teach all those involved to be more forward-looking; and this whilst providing them with stronger incentives and opportunities. He pointed out that with the cooperation of the Ministry of Education, the subject of hospitality has now also been introduced in secondary schools and ground work is now being laid at an early age. “The ITS (with its €60m project) and the University are also doing their bit and we all trust that the results will start showing in the near future”.
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Remaining on the subject of human resources, Minister Zammit Lewis explained that it is a well known fact that in the human resources sector Malta is not finding enough people to fill the required jobs. At the same time there is a need for retraining for local staff especially those who have been in the industry for a number of years. Technology and techniques are continuously changing and it is important to bring everyone up to the expected standards. When one looks at the HR situation in tourism in these Islands, the question of foreigners always crops up. Minister Zammit Lewis feels that one must clearly understand that non Maltese employees are definitely an important component in the HR mix of our employment. Predominantly, they fill certain gaps that arise in the short to medium term. “If one looks around,” he said, “one would note that all economies that function well employ foreign workers to fill the gaps. We must, nonetheless, give training on how to bring them up to the required standards as is done elsewhere and to help them fit in culturally as well. I do not see anything wrong if they become an inherent part of our tourism industry,” he added.
Foreign workers must be trained so as to start adding value to the cultural experience that Malta strives to give.
Breaking new ground Dr Zammit Lewis continued that 2017 will also bring in new experiences for the country’s tourism. For one thing it will see us being involved closer with the Chinese market. This is reflected also on the European mainland where there has been a lot of emphasis on reaching out to this mass market that China offers. The EU is aiming to bring in more work from China. The Minister of Tourism explained that with its larger resources this is an easier task for the EU than for ‘little’ Malta which has a bigger problem because of its small size. “Nonetheless our operators are already tapping that market” he said. “We are ready to support entrepreneurs who are trying to diversify into this market too” emphasised Minister Zammit Lewis. Turning to the British market so familiar to the Maltese, the Minister also said that “We have not waited for Brexit to become a reality and so we have already been in bi-lateral discussions with our overseas partners, in particular the UK ones, so that we will be in a better position to overcome the situation that will be created in the future without loss to our market from what to us is an established source.” The question that remains to be answered from this candid sharing with the Minister of Tourism is: How geared are we - as individuals - to implement the changes that he is proposing so as to continue polishing the gem that is our Malta product?
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Hotel Santana- catering for leisure and business The 4 star Hotel Santana in Qawra received its first guests in 1996. Over the years, the Santana has established itself amongst the most popular 4 star hotels in the area, catering for both the leisure and business segment, offering an array of facilities expected of a good 4 star hotel.
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Over recent years, Hotel Santana has undergone a refurbishment programme which will continue in the coming year. In addition, the Santana has more recently developed a new wing, comprising of 50 bedrooms, aimed at offering quality and the best of comfort, in style. A landscaped garden, appropriately titled Zazen, was also added to its existing facilities. This contemporary designed garden offers a pleasant recreational space. The clean lines, comfortable furnishings, Mediterranean plants and soft lighting offer a welcoming small oasis for guests. The hotel has just completed the refurbishment of its reception lobby, which will be followed by a refurbishment and upgrading of its Spa, amongst others. The hotel has also undergone a management restructuring process and Dean Mangion was appointed as the new General Manager. Hotel Santana is run and operated by Sunroute Hotels Ltd. which also owns the 3 star Sunflower Hotel in the same vicinity.
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Sunroute Hotels Managing Director, George Micallef, said “guests nowadays are becoming more discerning, whilst competition is getting tougher. Therefore we must continue to invest in the product we offer and in the services we provide to our guests and aim for quality at all times. I am confident that the money invested in the hotel is money well spent. We also need to invest more in our staff, which is why management restructuring was necessary. Dean Mangion will bring vibrancy and determination to the new team, both necessary ingredients for success.” Company directors Albert and Joe Sant added that the progressive performance registered over the years in the sector has encouraged us to invest further in the industry. George Micallef concluded that the Sunroute Hotels board will soon be launching a new hotel project, also in Qawra.
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MTA CEO welcomes German couple on their 86th visit to the Maltese Islands The Malta Tourism Authority is pleased to have recently welcomed Mr. Rudiger Heinz and Mrs. Vera Heinz to Malta for the 86th time in the past 32 years. This German couple has been visiting the island at least twice a year since they came here for the first time in 1984. The couple, who were accompanied to the MTA Head Office in Valletta by Mr Henri Diacono, Guest Relations Coordinator of the Radisson Blu Resort & Spa, met with the MTA CEO, Mr Paul Bugeja, and Mr Martin Morana, Events and Customer Care Manager at the MTA. Mr and Mrs Heinz visit Malta in spring (May-June) normally spending 3 weeks and in autumn (September-October) for another 3 weeks. However, they have visited the Maltese islands in every month of the year, but their favourite time is in autumn. They went on to say that they have made many friends with Maltese people from all around the island, as well as Gozo. The couple often bring along their family and friends when they visit the island, and besides that, they always speak highly of the Maltese Islands
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to their friends back home and show them some of the 18,000 slides which Mr Heinz has shot himself. Mr Bugeja thanked Mr and Mrs Heinz for being such loyal fans of the destination. He said “people like yourselves are the best advert for our country, as they truly appreciate what we have and are our ambassadors abroad.” Mr Bugeja continued by saying that “dedicated visitors like you keep us motivated in working towards achieving better results for Malta, and ensuring that we look after the different and varied legacies left to us by our ancestors for the enjoyment of future tourists and the local community. Mr Bugeja thanked Mr Henri Diacono for taking this initiative, and presented Mr and Mrs Heinz with two Malta books to add to their collection and augured them all the best for their future travels. HOSPITALITY MALTA
The Malta Tourism Authority Quality Assured (QA) seal is definitely gaining momentum and becoming a recognised brand associated with quality in tourism. Today, almost 150 businesses consisting of restaurants, visitor attractions and destination management companies (DMCs) located across the Maltese Islands, are QA certified.
It’s all about quality
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QA seal is a voluntary scheme which was first developed for DMCs and was later extended to include visitor attractions. More recently, in 2015, the restaurant category was also added under the same quality mark. Today the majority of certified businesses are restaurants with over 100 spread across Malta and Gozo, covering anything from family friendly restaurants to fine dining cuisine. These include Maltese, Italian, French, Chinese, Indian, Lebanese and other cuisines specializing in fish, seafood, meats, pizza, pasta and many other types. The visitor attractions include heritage sites, house museums, factory tours, audio visual shows, specialized museums, fun parks and many more. The aim of the QA seal is to encourage best practice and recognise those establishments that consistently deliver a quality product. Some examples of this include a better trained workforce and an emphasis on
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the local element. The criteria are updated regularly and by working with the industry, other national tourism organisations and looking into customer feedback, we constantly ensure that any changes to the scheme criteria are in line with current consumer trends. All QA awarded businesses have undergone the necessary process of application, assessment and awarding. The assessment consists of a third party mystery guest visit for restaurants, an audit for DMCs and an announced visit for attractions. In each case, an independent monitoring committee takes the final decision based on the recommendations following assessment. So if you are interested in eating out, want to visit one of our many attractions, or want to organize an event on the Maltese Islands we invite you to visit our website at www.qualityassuredmalta.com. Alternatively a printed annual guide with all the Quality Assured businesses is available at any of our eleven tourist information offices across the Maltese Islands.
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2017: an eventful year Malta boasts of an events calendar featuring an eclectic blend of local and international entertainment, exhibitions, festivals and feasts. Whatever your particular area of interest may be, you are sure to find activities which will appeal to you. Choose from performances by international contemporary music stars, classical music concerts and jazz festivals, amongst many others. Malta’s vibrant performing arts scene also offers a surprisingly diverse repertoire of theatre, opera, and dance. Moreover, the Maltese islands play host to an exciting array of international sporting events. If you are looking for an authentic Maltese experience, then look out for traditional events such as our village festas, Carnival and Holy Week celebrations. The following are just a few of the events that are taking place in Malta and Gozo during the year. January - 12-28/01: Valletta International Baroque Festival 2017 February - 10/02: Feast of St. Paul’s Shipwreck - 24-28/02: Carnival in Malta and Gozo - 25/02-02/04: Gaulitana: A festival of Music 2017 March - - - -
05/03: Vodafone Malta Marathon 19/03: Feast of St. Joseph 20-21/03: Spring Equinox 31/03: Freedom Day; Regatta in the Grand Harbour
April - - - - - - - -
02/04: Festa Frawli (Strawberry Festival) 12-30/04: The Malta International Music Festival 13-16/04: Annie Mac Presents…Lost & Found 14-16/04: Easter Weekend 15/04: 33rd Malta International Judo Open 22-30/04: Malta International Fireworks Festival 28-30/04: Valletta Green Festival 29-30/04: Mdina Medieval Festival
May - - -
01/05: Workers’ Day 21/05: Garmin Ocean Lava Malta 113k Triathlon 21-27/05: Malta Fashion Week
June - - - - - - - - -
01-04/06: Mellieħa International Music Festival 02-04/06: Earth Garden 07/06: Sette Giugno 16-25/06: Valletta Film Festival 18-19/06: Agricultural Fair 23/06 - 15/07: Malta International Arts Festival 24-29/06: Għanafest (Traditional Folk Song Festival 27/06: Isle of MTV Malta Special 29/06: Feast of St. Peter & St. Paul (L-Imnarja)
July - - - - -
07-09/07: Marsovin Summer Wine Festival 20-22/07: Malta International Jazz Festival 28/07-06/08: The Farsons Great Beer Festival 28-30/07: Mellieħa Nights Joseph Calleja in Concert
August - 03-06/08: Delicata Wine Festival - 15/08: Feast of St. Mary - 18-20/08: The Delicata Classical Wine Festival September - 02-03/09: Qormi Wine Festival - 08/09: Il-Vitorja; Regatta race in the Grand Harbour - 13/09: George Cross Commemoration - 21/09: Independence Day - 23-24/09: The Malta International Air Show - 27/09: World Tourism Day - 30/09 - 01/10: Żejt iż-Żejtun October - - - - - -
05-08/10: Malta Classic 07/10: Notte Bianca 13-15/10: Birgufest 21/10: Rolex Middle Sea Race 29/10: Pumpkin Feast Malta Military Tattoo; Lejl f’Casal Fornaro (The Bread Festival); The Ħamrun Chocolate Festival
November - 02-05/11: Malta International Choir Festival - 10-19/11: Żigużajg December - 08/12: Feast of the Immaculate Conception - 08/12-02/01: Betlehem f’Għajnsielem - 13/12: Republic Day - 21/12 - 03/01: Christmas Cribs Exhibitions - 25/12: Christmas Day - 31/12: New Year’s Eve
For more information about events go on www.visitmalta.com/events
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