Insider Special Edition 2014

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Vol. III SPECIAL EDITION 2014

The Great Story Mediterranean Tourism Forum 2014

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6

8

14

19

25

33

39

44

51

62

71

81

86

93

98

111

114

Nationality Mix Spain Russia 3% 3% Austria/ Swiss 3%

Libya 2%

Ireland 2%

59

Benelux 5% Scandinavia 7%

United Kingdom 29%

France 7% Germany 9% Italy 15%

Other 15%

Source: National Statistics Office

Contents Malta Hotels & Restaurants Association 06 Editor's Letter: Embracing Differences Nr. 2, Gallina Street, Kappara San Gwann, SGN 4111, Malta 08 From Her Excellency the President of Malta: The Great Story Tel: (00356) 21318133/4 Fax: (00356) 21336477 14 Cohesion in the Mediterranean: Meeting the Minister for Tourism Email: mhra@mhra.org.mt Web: www.mhra.org.mt 19 From the Opposition Spokesperson P 25 The People behind The Great Story 31 The Craftsmanship of Care 33 Past and Present: Complementary Thinking of two MHRA Presidents 39 The Bigger Picture: an Interview with the Malta Tourism Authority CEO iMNG Ltd Ajiree Court, 04, 44 Impressions of Tourism Industry Leaders Testaferrata Street, Ta’ Xbiex XBX1403, Malta 51 Flying the Pride of Malta Tel: (00356) 2010 7775 Email: info@i-mng.com 59 Interview with the Malta Film Commissioner P 62 HOTREC: Europe's 'Voice' of the Hospitality Industry Jason Attard jason@i-mng.com 71 The Man behind Corinthia E Jason Attard 79 Hotel Phoenicia: Malta's Iconic Hotel jason@i-mng.com 81 2013 at a Glance E A Dr David J. Dingli 86 The Mediterranean: Lessons from the Past?

Claire Galea 93 Cutting Diamonds: Investing in Human Capital S M Marian Poucher 98 The Great Indian Traveller marian@i-mng.com 109 Stop Food Waste L &D Jason Attard 111 Hologram Technology and Tourism A D 114 The New Reality: Augmented Reality Experience in the Tourism Industry Whitney Gravier ublished by

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CORPORATE SPONSORS

Sponsors

PLATINUM SPONSORS

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

© 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.

Jason Attard

The Editor's Letter

Embracing Differences

T

he Mediterranean region is regarded as the source of most contemporary civilisations. Historically this basin has been the central superhighway of transport, trade and cultural exchange between diverse peoples, encompassing three continents: Western Asia, North Africa, and Southern Europe. For many years, this region was regarded as pivotal as an access point between these continents, and had strategic importance: control of this area held the keys to political and economic power in the region, extending to the rest of the surrounding continents.

Today, the Mediterranean region is the principal tourist destination in the world: around one-third of all

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international tourists arrive in the Mediterranean, making it the world’s most visited region. Tourism therefore plays a vital role in the region’s economies, affecting all aspects of these countries’ development. In today’s world, the markets and economies of different countries are ever more interrelated. It is no longer sufficient for a country to work on its own to create a favourable situation for its economy.

This is especially the case for countries within the European Union as decisions taken at a European level will have longreaching influences on the rules and regulations binding member countries and even those in the surrounding regions. Additionally, as explained in Professor David Abulafia’s contribution, 80% of tourists visiting Mediterranean come from Europe, mostly from northern and western countries, thus reiterating the importance of combining efforts and creating a unified front.

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There are a multitude of factors that influence the economy of one particular country. The dynamics of the tourism industry create an interrelationship between different countries that is unprecedented in other lines of business.

The political situation in a particular country will affect the economy and hence the affluence of its people which will affect the disposable income available for travel. This was evident recently in the economic recession experienced in most European countries: this led to many countries limiting their international travel due to constraints on their disposable income.

From another angle, political instability in a country may create a barrier to incoming tourism as visitors will be prone to be averse to risk and would prefer to visit countries with a higher level of stability. For example, recent and ongoing political turmoil in countries such as Libya and Egypt meant that travel to these countries both for leisure and for business was severely cut down. This may also inadvertently lead to opportunities for other markets that emerge as replacement markets or as a support for such troubled situations; for example, with the issues in Libya, Malta emerged as an alternate transit destination to provide access to Libya.

Apart from the political and economic influences on tourism, there are also factors such as technology that have been significantly influencing the evolution of the tourism industry in today’s world. As explained more clearly in the article by Daniel Surya and Jeffrey Budiman and in that by Nick Vilardell, tourism is another area wherein the dynamics are being completely transformed through the advance of technology.

Another important factor shaping the global tourism market is the sociocultural situation of different countries. As we see the advancement of certain huge markets such as India, China and Japan, more and more of the population in these countries are achieving middle class affluence, creating an enormous new swathe of travellers interested in world tourism.

This creates massive opportunities for expansion of the world tourism market, but countries interested in winning tourism euros must ensure that they are aware of such developments and target these new emerging markets. As explained extensively in the article 'The Great Indian Traveller', one such opportunity is the growth of the number of Indians travelling: these are expected to increase exponentially from 15 million today to around 50 million by 2020. Most of these Indian travellers are also likely to undertake a multi-country vacation in Europe and it is therefore essential for a country to create a presence and share of mind to be considered in the travel decision-making process.

Another important factor influencing the ultimate quality of the tourism product is the stock and level of the labour market servicing this industry. This is an issue discussed extensively in the case study presented by Barbaros Kon and also touched

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upon by various other contributors, including the incumbent MHRA President, Matthew Pace.

Why should the Mediterranean countries co-operate?

Aren’t these countries in competition? The major growth in tourism is stemming from the BRIC countries (Brazil, Russia, India and China) – huge countries holding great potential for future growth. It is therefore essential for the region to create a unified lobbying presence to market itself.

Rather than merely marketing key hotspots such as Rome or Paris, the region would be able to showcase a multitude of destinations within the region, highlighting and showcasing different offerings. We need to create a complementary and cohesive product to appeal to these new emerging markets; to combine our differences and thus create a value proposition to BRIC which they would find hard to not be attracted to.

The aim of the Mediterranean Tourism Forum is to unite Mediterranean countries into one consistent, unified region to create awareness for those issues which are specific to this area and keep them high on agenda for discussion. The Forum is under the patronage of Her Excellency the President of Malta who in this instance is not solely a unifying figure for our country, but is moreover representing the unity of the region that is key for the success of this initiative.

As explained by Andrew Agius Muscat, MHRA CEO, it is therefore essential to have a voice in Europe to be able to lobby to influence decisions at a European level. The Forum is not just a ‘conference’ but has more far-reaching and longterm objectives to tackle different aspects of the sector. Malta and the MHRA have taken a leading role as a catalyst in this situation. The MHRA’s vision is to have a culmination of all the aspects tackled in the separate fora by 2016. This will be presented to Malta’s Prime Minister, Dr Joseph Muscat who has accepted to put forward these points for discussion during Malta’s EU presidency tenure.

We would like to thank Her Excellency, the President of Malta and the Minister of Tourism for their contributions, as well as the various other contributors, including Malta Tourism Authority CEO, the Malta Film Commissioner, Air Malta CEO, President of HOTREC, and local industry leaders, as well as our foreign contributors; who have together ensured that this publication has developed into a truly exciting one, setting the stage for a valuable and beneficial discussion during the Mediterranean Tourism Forum.

With the Mediterranean being the birthplace of most cultures and religions, and Malta’s interesting and varied history that provides a melting pot for so many different cultures, our country is the ideal location to create such a Forum that will hopefully be the introduction of a new, ever more successful chapter in the book of the Mediterranean’s economic development, giving the next steps to ‘The Great Story’.

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From Her Excellency

the President of Malta The Great Story It is indeed befitting that the 2014 Mediterranean Tourism Forum being organised by the Malta Hotels and Restaurants Association is described as ‘The Great Story’. The history of Malta’s success in the tourism industry is truly a Great Story, made possible through the entrepreneurship and hard work of the Maltese people, as well as our strategic position in the heart of the Mediterranean.

Our country provides the perfect credentials for the success it enjoys in the travel and tourism industry. Malta’s natural beauty surrounded by the deep blue Mediterranean Sea lapping at its shores, the picturesque countryside, the island's great history, rich heritage and culture, as well as the commitment and hospitality of its people, provide all the ingredients for a flourishing hospitality industry.

The great story of tourism began in the mid-1960s, and grew significantly in the 1970s. Since then, Malta has adamantly looked forward to refine its product and to strive towards excellence in the service offered to our guests.

Tourism is a crucial sector of Malta’s economy and a major driver of economic growth and development. The tourism industry yields an extremely important contribution to the job market and thus, to the social fabric of our society.

The total contribution of tourism to the Gross Domestic Product was EUR1, 798.8 million (25.5% of GDP) in 2013, and is forecast to rise by 4.5% during the current year. The direct contribution of the tourism industry to the Gross Domestic Product reflects the internal spending by both residents and foreigners for business and leisure purposes, as well as hotels, airlines, airports, travel agents and leisure and recreation services that deal directly with tourists.

Our strongest market was and remains Europe, with 51.6% of the total number of visitors in 2012 hailing from the region. It is also interesting to note that 28.65% of tourists spend in Malta do so in restaurants.

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Investment The investment in the hotel and restaurant business in 2013 was EUR125.7 million, or 13.4% of total investment.

It is expected to rise by 5.3% in 2014, and again by 2.1% per annum over the next ten years to EUR163.3 million in 2024, making it 13.4% of the total expenditure.

The figures are higher when one considers the wider effects from investment, the supply chain and induced income impacts and which is expected to grow by 4.5% to EUR1,879.1 million (26.3% of GDP) in 2014.

The time is right also for the tourism industry to further invest in the sector towards a more selective clientele.

Travellers today expect high standards and technology in accordance with modern trends. We need to keep in mind major events that Malta will be hosting in the coming years, and that augur further inward travel opportunities.

Employment In 2013, the hospitality industry directly supported 25,500 jobs, comprising 14.8% of total employment. On the employment front, the hospitality industry in Malta is one of the most productive sectors. Out of the 144,094 full-time workers on the island, approximately 40,000 of these depend, when including those employed indirectly with the hospitality sector. Still, the popularity of the island means that during seasonal peaks the industry is very often in short supply of workers. At the end of June 2014, there were 2117 foreign nationals working full time in the industry, and a further 1682 on a part time basis, but still being their primary job. Of these, there are 1476 full timers and 1370 part-timers are European Union nationals.

The hotels and catering industry offers a myriad of opportunities for employment. It offers diverse areas of interest for those aspiring for jobs in the sector, and

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H.E. Marie Louise Coleiro Preca

The tourism sector indeed creates job opportunities like no other sector, and for this alone, we should cherish it and take advantage of it to the maximum. different working hours. It is a reality that employment in the sector is not necessarily family-friendly, but, as always, intelligent planning and personal life management skills will compensate even for this.

achievement. It is accessible to anyone who truly wishes to seriously embark on a career in the industry, starting from basic training and following their development as far as they wish.

The sector offers possibilities to people having a wide range of skills and qualifications, and therefore, is available to a wide range of people. The tourism sector indeed creates job opportunities like no other sector, and for this alone, we should cherish it and take advantage of it to the maximum.

The Malta Institute of Tourism Studies is today offering training to students at a highly professional level to be able to work in the hospitality sector. It has recently established a Bachelor’s Degree in Culinary Arts programme, which provides its student not only with academic and technical expertise, but also hands-on and research skills that are essential in the market today.

Human Resources Development and Training

I augur that the Malta Institute of Tourism Studies will continue to expand further and offer higher qualifications so that our young people may have the opportunity to specialise even in this context, if they so wish. The more opportunities for training are available, the better the service Malta can offer to our visitors.

Malta’s most valuable resource is its human resources. Our human resources and their positive attitude towards their clientele, provide an unbeatable marketing tool for our country. If we are to remain optimistic about our market competitiveness, we need to invest also in our human resources. Adequate training and skills development in the industry will lay the ground for Malta’s success.

Sustainability

With this in mind, the Institute of Tourism Studies has developed alongside the industry, providing professional training to our young people in one of our most important sectors of the national economy. The training is comprehensive, and continues to extend in response to modern day trends.

The sustainability of our success story depends partly on the natural resources of our country, and if we want to maintain it, we need to protect our environment.

Government and the tourism industry need to focus on protecting the environment, in order to achieve long term sustainable growth in the hospitality industry.

The Institute for Tourism Studies offers training at all levels and to people with diverse capabilities and levels of

What does the future hold for tourism in Malta?

References The Economic Impact of Travel & Tourism Malta 2014 World Travel & Tourism Council 2014 Tourism in Malta 2013 Edition Malta Tourism Authority http://www.its.edu.mt/ Inbound Tourism August 2014 National Statistics Office Malta Press Release 183/2014 1 October 2014 Gainfully Occupied Population June 2014 National Statistics Office Malta Press Release 212/2014 10 November 2014

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Although Malta attracts tourists in the 25 to 64 age group bracket, there has been an increase in the over 65 year age group. The latter niche market is an important factor as it usually covers the shoulder months, and Malta should develop its potential accordingly.

According to data provided, it is also reported that the most popular mode of marketing is by word of mouth, actual recommendation by family or friends. The onus of responsibility therefore falls on all of us with the way we portray our country.

In pursuit of excellence - that is what Malta needs if we are to compete with other tourist destinations in the Mediterranean.

When the Apostle Paul was shipwrecked off our island, it is said ‘The natives treated us with uncommon kindness’.

Two thousand years later, Maltese hospitality remains as warm as it was then, and is still our forte. Let us nurture this strong point, as no matter what may develop in the Mediterranean region around us, the people to people contact will continue to serve us unequivocally.

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Cohesion in the Mediterranean Meeting the Minister for Tourism words: Victor Calleja

“This initiative by MHRA to kick-start a forum that brings together the Mediterranean is a truly great one and we, as the Ministry for Tourism in Malta and also as a Government, fully endorse it.” These were the direct, immediate words of Dr Edward Zammit Lewis, the minister responsible for Malta’s tourism, when Insider met him a few weeks before the start of The Mediterranean Tourism Forum.

Dr Zammit Lewis has only been minister responsible for tourism for a few months but his knowledge of the sector and his vision is one which will surely see him make huge inroads. He is enthusiastic about the MHRA’s new project and wants to be part of it.

“We see great synergies which can happen in conjunction with the other Mediterranean countries. We also see a number of flaws and problems which affect the region and which need to be addressed. The more we see the advantages that unity gives, the more we can move forward and make deeper inroads in anything that can benefit the region,” Zammit Lewis tells us.

“Malta and its tourism are a real success story,” Zammit Lewis says. “The numbers—and the overall figures—are good and have been good for a number of years and there has been positive work which was started by the previous administration. We are seeing better figures in all aspects. This is something we need to go on sustaining and improving.

Our core market remains the EU, which is very good, but we need to tap further afield.”

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By tapping into the Chinese, Indian and American markets, Zammit Lewis believes we can find new ways, new synergies with all our neighbours, to offer a more cohesive product.

Travellers from distant lands want to visit a number of different destinations. This is where the idea of the Mediterranean as a whole will work wonders. “I love the vision of the MHRA,” enthuses the minister. He goes on to pay tribute to the organisation which, according to him, is the best-organised and most visionary of the Maltese NGOs connected to tourism.

By bringing together the different destinations that make up the Mediterranean the MHRA will be working as a catalyst to ensure more growth in the region. And if Malta is seen as a leader in this field it will undoubtedly reap even more benefits.

Zammit Lewis believes that the whole region has to work harder - together - to make sure the issuing of visas is not a hindrance to travellers from non-EU countries. He knows that the proper vetting of travellers is of paramount importance for the security of the region. But he insists that a concerted effort is required to make visas more easily available for bona

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The Minister believes that we must collaborate whilst constantly striving to preserve all that makes Malta so uniquely different. fide travellers. By acting together, the different Mediterranean countries can contribute more to the actual solution.

The Mediterranean is a unique region according to Zammit Lewis. He believes wholeheartedly that the way forward for this region is encompassed in what the MHRA is proposing but at the same time he also insists that we must strive to preserve all that makes it so individual, so uniquely different.

The Mediterranean has seen some of the most important events in world history. The countries surrounding this basin are just a small part of a bigger whole. So, by doing more together, we will be giving visitors a more comprehensive look at this shared, multi-faceted history.

Leveraging common cultural connections will allow the whole region to expand economically. Tourism will undoubtedly keep growing, but the more time passes, the bigger the effort that has to be made to keep the region innovative and attractive. By offering the Mediterranean cultural experience in its entirety, all countries in the region will benefit economically.

He believes that more can be done by way of exchange of ideas, of service offering, which will mean higher value to the visitor.

Zammit Lewis considers that more cohesion in the offering of the Mediterranean will result in more visibility. He sees a good future for Malta and for its tourism and he is happy to see the MHRA add a wider dimension to the whole concept of tourism.

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From the Opposition

Spokesperson

Robert Arrigo

The idea of organising a forum for the Mediterranean is an excellent one, reinforced by the times we all live in. I say this both as a private citizen as well as for the commercial entities that are a pillar to Malta’s tourism industry.

No doubt further unrest in the north African zone, particularly Libya, but not only, is not a thing anyone would wish for. This is too close for comfort, and the various movements, knowingly or unknowingly, may create panic. Together with the unrest, the wars; we also have to look out for the Ebola virus.

Both regarding Malta singularly, and to the med region as a whole.

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Thus, the organising of the forum is important. And the forum should avoid rhetoric at all cost, and make sure that it pushes forth into action mode as from the get-go.

The forum should assist in matters such as in one wherein we could suffer enormously if even one single Ebola victim is found in Malta.

Unlike other large countries, where staying in the north or south or a region, is tantamount to staying in another country due to size, Malta is so small that we would get hit as a whole.

The forum has to get everybody on board, and that the MHRA involved

high-ranking officials of various countries will prove to be of high strategic value: people who can talk of mutual cooperation, difficulties and challenges, and who can indeed be contacted, and contracted, at government level so as to contribute towards the prevention of crises. Let us not allow years to go by without our pre-empting challenges.

Are we alone? Or are we already in a formed group, seeing the common future with a plan in hand? This is what I would like to see emerge from this forum, and I am sure that it will be a front-line meeting place for countries. To prevent is always better than to cure.

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The People behind

The Great Story words: David J. Dingli Matthew Pace

M

alta

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is a small island in the Mediterranean however it is inhabited by people with big ambitions that extend well beyond Malta’s shores. I have interviewed Tony Zahra, MHRA’s president and Andrew Agius Muscat, MHRA’s CEO in their roles as President and Secretary General of the Mediterranean Tourism Forum respectively, so as to garner their vision of it.

Striving to unite the entire 29 countries that have the Mediterranean Sea in common is indeed a promising initiative. For many of the countries, well there isn’t much else that one could say is similar. I was curious to understand how this Forum would work.

Tony Zahra, an established businessman and strategist insists

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that the starting point before all initiatives is the setting up of a clear vision. Leaders have to be visionary. Once that rallying cry is communicated a strategy will be worked out to establish the milestones necessary to be able to reach that vision. The ultimate aim for the Forum is to have a structure within itself to be able to support and implement the vision in a more permanent manner.

Both Tony and Andrew agree that all Mediterranean countries can gain from co-operation within the tourism sector. Tony seemed to have anticipated my concern about the different political beliefs, culture and economic strengths of the Med countries and he quickly explained how he sees diversity as a strength to be harnessed when it comes to selling the region.

Andrew realises that there are challenges and by no means envisages this unification of nations as an easy feat to accomplish. But he sees this as a vehicle for a more peaceful region too. He believes that in order for the diverse players to want to collaborate the focus must be on the unifying factors.

In negotiations, Andrew claims, if the objectives are agreed by all concerned, then differences can be ironed out and resolved.

Tony, a positive thinker and an optimist is convinced that diversity will be a major motivating factor in the Forum which will facilitate and not the countries’ adhering to the same views on all matters concerning the region.

I was rather worried to have offended the two protagonists when I challenged the Forum’s capability to be more than just a platform for conferences, speeches and report writing. I wanted to know whether it will be able to play a directly relevant role instead, and

Tony Zahra (l) and Andrew Agius Muscat

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The BRIC countries offer enormous potential and Tony and Andrew believe that it is primarily together that the Mediterranean countries can be more successful in attracting these enormous markets more so than if they work alone. thus influence national governments to take specific actions where enhancing the Tourism product is concerned.

Tony did not see this as a future challenge but brought it down to the “here and now” and insisted that the Forum has actually already commenced to be highly relevant. In fact, the Forum has already agreed with the Government of Malta to prepare a report by 2016 which will be its launch pad when it assumes the Presidency of the EU in 2017. Andrew explained how MHRA teamed up with HOTREC (Editor’s Note: see our Interview with the HOTREC President on page 62), which has a very important role to play in Brussels as it is an umbrella association for Tourism associations, including Malta’s very own MHRA; and hence has the power to affect EU policy making.

Tony was enthusiastic about the interest being shown by Mediterranean countries however he too has his feet on the ground and is under no illusion that the Forum can change much in its first few months alone. Such large initiatives require time. Both Tony and Andrew believe that the longest journey starts with

The Forum has already agreed with the Government of Malta to prepare a report by 2016 which will be its launch pad when it assumes the Presidency of the EU in 2017.

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the first small step. They are both proud to have embarked on this journey and are already looking back at the initial first steps taken on this exciting journey.

Now it is a fact that projections of international tourist arrivals in the Mediterranean will reach 500 million by 2030 (presently approximately 320 million). With such phenomenal growth projected for the region, one might wonder whether the Forum could actually generate any added-value to the momentum that is already present in the region.

Both Andrew and Tony, who are well aware of these numbers and the various projections, were quick to respond that most tourist arrivals in the Mediterranean are coming from Europe. The BRIC countries (Brazil, Russia, India, China) offer enormous potential and they believe that it is primarily together that the Mediterranean countries can be more successful in attracting these enormous markets more so than if they work alone. This is a common goal as all countries stand to gain from developing new markets.

Malta will also stand to gain when it showcases its product among all the most successful destinations in the Mediterranean such as France, Italy, Spain and Greece.

They strongly believe that the Med Tourism Forum, being organised under the patronage of Her Excellency the President of Malta, attracting renowned international speakers and personalities including David Abulafia, Chiranjeevi, Ram Charan, Daniel Surya and Alfred Pisani, will be the launch pin that will bring all these countries together; striving for a common objective where the synergy will reap very positive results. Whilst insisting that MHRA is not an event organiser but

a lobby group, Andrew explained that the Forum is seen as a new way to work closer with Government and lobby for the industry needs to ensure the further growth of sustainable tourism. Whilst on the topic of format of the Forum, he also explained that in the evening there will be the first Mediterranean tourism awards gala night to recognise the efforts of personalities to promote tourism across the Mediterranean region. Both Tony and Andrew wanted to thank all stakeholders who supported and financed the event and specifically mentioned the Ministry of Tourism, led by the Hon. Minister Mr. Zammit Lewis and the MTA’s CEO Mr. Paul Bugeja.

The Forum’s President and Secretary General are both very excited about the event and keen to get back to sorting out the final preparations for “The Great Story”; the theme chosen for this year’s Forum where approximately a thousand delegates are expected to attend from all corners of the globe.

I finished off my cappuccino, shook their hands and wished the two gentlemen every success for the Forum. I am confident that they have what it takes to pull this off in the most professional way and that MHRA will emerge from this event as an even stronger organisation. The benefits for Malta with so many protagonists involved are simply incalculable.

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Inspired by one man’s drive, passion and dedication, Corinthia was founded by Alfred Pisani and his family in 1962. Underpinned by the family’s values of mutual respect, support and honesty, Corinthia started life in their native Malta as a fine dining restaurant which later grew, like their collective vision, to become a grand hotel – the Corinthia Palace Hotel & Spa. From relatively humble beginnings, to a collection of unique five-star properties, the family’s perseverance and never-ending optimism transformed challenges into success every step of the way along their journey to building a great hotel company. And some years later, with the purchase of a property in Prague, the fledgling company was well on its way.

Now, with nine stunning hotels across some of the most intoxicating locations in Europe and North Africa, including Budapest, Lisbon, Tripoli, and Khartoum, Corinthia has established itself as a brand of distinction. The 2011 opening of Corinthia Hotel London, the company’s latest addition and breath-taking flagship property, cemented the brand’s ideology of timeless luxury juxtaposed with cutting edge technology.

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Each property is unique in design, whether beautifully-restored grand hotels from a bygone era or towering glass edifices of clean modern lines, they remain sensitive to local culture and architecture.

The common ground on which Corinthia properties stand however, is the shared promise of delivering a caring service to guests in the most authentic and sincere manner possible.

Knowledge, experience, understanding and a fanatical attention to detail; these are the qualities that distinguish a true craftsman. To provide hospitality with passion and honesty is a timeless craft - as old, challenging and inspirational as that of being a master stone-mason, goldsmith, painter or musician.

At Corinthia, the Craftsmanship of Care is evident in every undertaking, always ensuring that every guest feels at home while providing discreet service and a helping hand wherever necessary. The timeless values that have spurred the Pisani family onwards for over 50 years underpin the very Spirit of Corinthia and extend, not just to our guests, but to each and every one of our team.

In a world of mass produced experiences, Corinthia offers the bespoke. Like an exquisite madeto-measure suit, or a beautifully shaped precious gem, Corinthia has carefully crafted the ultimate hotel experience with authenticity, passion, precision and understanding.

That, after all, is the true Spirit of Corinthia.

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Past and Present: the Evolution and Complementary Thinking of two MHRA Presidents

Matthew Pace (2014 - present) and George Micallef (2009 - 2011)

Leaders past & present are in positions to effect change. Some might look back and feel satisfied with their legacy and others who are presently in the hot seat are keen to get things done‌ to implement the changes that the Tourism industry is yearning for. An interview was conducted with a past President of the MHRA, Mr. George Micallef, and the present President, Mr. Matthew Pace.

George served as President for the period 2009 – 2011, whilst Matthew is quite new to the role. The main experience brought to the role by Matthew is that as a restaurateur, and he is still excited about the future of MHRA and what he can contribute to his new role.

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George dwelt on the origins of the MHRA. He has had a long history and involvement with the organisation, having been a member for the past 30 years. He recalled that at the time, it operated from very humble quarters, with the President and the Secretary General having

to see to everything, with no staff and very little resources. The issues then were completely different to the present scenario as nowadays the organisation is involved in very wide-ranging matters. However, he said, the MHRA was then, and still is now, a very important voice and

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an active organisation for the tourism industry and not just for hotels and restaurants.

When outlining the growth of MHRA, he described with a sense of pride how, over the years, MHRA grew to become a very well structured organisation, with a strong proactive role both at a local as well as at an EU level. He claimed that it is today the leading voice in the tourism sector and an influential social partner.

He recounted how during his time as President, the association had reviewed the statute to facilitate having more council members appointed.

The aim was to have a distribution of roles and responsibilities to ensure that leading important issues within the industry are represented, rather than merely representing a particular hotel category. Some of the emerging objectives were to look at sustainability of the Maltese tourism product, marketing and product development. He felt that it was more important that members follow specific and critical issues affecting the industry.

When reflecting on his role as President he said that every President has to deal with issues that are prevalent at the time. His tenure coincided with the post economic recession period, so it was mostly about the sustainability of the industry. He expressed his thoughts at that moment and said that he thinks that with the challenges being faced today, it is important that council members are

appointed for their areas of expertise or knowledge of the industry, rather than the category of the hotel they may represent.

Matthew was quietly listening to George’s narrative of the development of the Association. It was his turn to contribute to the discussion.

As a member of the Association for the past six years he expressed his opinion that although the MHRA technically only represents hotels and restaurants, since the hospitality industry is made up of many different segments, when lobbying, the MHRA also covers the interests of the whole tourism spectrum.

Ever since MHRA was founded, presidents have sought the best in-

in today's tourism environment, restaurants are playing a bigger part in completing the visitor's experience

MALTA HOTELS & RESTAURANTS ASSOCIATION

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terests of all its members, irrespective of their business background. Matthew feels that a President is one of a council, which is ultimately made up of members coming from every category of the hotel and restaurant sub-sector of the industry. Throughout his involvement in the council, he has seen a strong restaurateur activity at council level, and consequently, decisions are taken by consensus as a whole council. Matthew said that in today's tourism environment, restaurants are playing a bigger part in completing the visitor's experience.

The presence of stand-alone catering establishments now stands at almost one thousand five hundred.

However, when challenged on widening the scope of membership of the MHRA to other sectors of the industry he categorically stated that this would not be a good idea. Since the MHRA’s inception in 1958, the focus had always been on representation of Hotels and Restaurants. He expressed concern that a wider spectrum of members might create conflicts of interest which will be very difficult to represent effectively. He spoke about his Presidency and claims that his becoming president is highly related to the fact that the council is a very united dynamic team who placed their faith in him.

It was time to challenge George on his opinion on where Malta fits in and where it should focus as a Mediterranean player, given the economic conditions and current hospitality trends.

Join the MHRA and support it in its quest to safeguard the interests of the tourism industry and at the same time enjoy the benefits of membership.

For further information contact the Membership Officer at membership.officer@mhra.org.mt

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His opening statement was an expression of Malta’s size. Malta is a small country he said, with relatively low visibility in long haul destinations that have growth potential such as BRIC countries. Malta’s resources are limited, and in order to maximise on its exposure, Malta needs to partner with neighbouring countries and work towards having Malta included in the itinerary of destinations tourists choose to visit when holidaying in the Mediterranean or Europe. He also felt that the Mediterranean players are effectively leveraging their strengths and converting them into opportunities and he gave the example how the UNWTO, the EU and other institutions have been pushing towards greater collaboration and partnership between Mediterranean countries. He was pleased to say that he felt that some convergence in this respect was having some visibility and results.

With Matthew as current President I focused more on employment within the industry. I wanted to understand how he see the availability of people who are needed to fill both the lower-tier as well as the higher level posts and where the Maltese fit into this scenario. Matthew expressed concern and acknowledged the shortfall in labour supply that the lower-tier hotels and restaurants in particular are experiencing. The industry simply cannot recruit enough Maltese

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employees to satisfy the industry demands. Tourists visiting the Maltese islands come here to experience the hospitality that the Maltese are so renowned for yet visit local establishments only to be served by foreigners. He feels that unless the issue is addressed urgently, the situation will only become worse. He was critical of the Institute of Tourism Studies (ITS), which was originally set up with a mandate to address this negative scenario, yet, he feels, has lately derailed from its objective, whilst giving the impression that graduates from this Institute will only become chefs or managers, and even there, he claims, are falling short.

Matthew expressed caution when discussing higher level positions within the industry. He reiterated his opinion that the supply is falling short at every level. Youngsters opting for catering careers are being misled into a misconception that they will fast track their way to management levels. Addressing today’s youths he said that the younger generation has to understand that when only focusing on the top jobs, they will not only be competing with other Maltese recruits but with a large number of high fliers from another 27 member states.

The focus of attention turned to the Mediterranean Tourism Forum being organised and coordinated by MHRA. I wanted to know George’s

views on the Forum and how, in his opinion, the Forum could directly enhance Mediterranean tourism performance. George was quick to reply that the Mediterranean countries need to work together more and would do well to form strategic alliances for cooperative marketing efforts in order to maintain a competitive edge in the globalised tourism market. He supports the Forum and was confident that such a Forum contributes in achieving this objective.

Matthew was very enthusiastic about the Forum and defined it as a perfect example of the way MHRA are now doing things. The long term strategy for this initiative is one of tremendous foresight. He stated that the fact that this little rock in the Mediterranean is taking the lead to unite this whole region while creating strategic alliances with its counterparts across the sea is nothing short of remarkable. MHRA is a non-profit making organisation, and such an awesome feat is a very costly exercise.

With a great sense of pride he said that MHRA over these last years has generated a very positive feel-good factor with many stakeholders in the tourism industry and it is this positive sensation that is encouraging its members and sponsors to fully support this initiative. He heartily and sincerely thanked the sponsors for their support.

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Linking the Forum to the enhancement of Mediterranean tourism performance, Matthew expressed his views that the world's main economic growth stems from tourism. One third of this tourism traffic comes to the Mediterranean region. This statistic clearly emphasises the attraction this region creates. In agreement to what George said earlier, Matthew agrees that the main worldwide tourism growth will originate from the BRIC countries. It is highly unlikely that these long haul travellers will visit one single destination, but rather experience their vacations over a variety of neighbouring countries. The sooner Malta integrates with its neighbouring countries the better it will stand a chance to take advantage of these new distant source markets.

over the last few years, MHRA had evolved dramatically. In saying so he was referring to the way they are now doing things. Nowadays MHRA has become the most relevant lobby group to discuss tourism in the country. When one considers that the members have investments running into many millions of Euros, one can clearly understand why.

MHRA has practically changed the way it now lobbies with government.

Rather than drafting reports and endless requests, they are now going the extra mile and coming up with the goods and concrete proposals for government to endorse and hopefully support. In future, maybe MHRA should be more active about issues which are not directly tourism related but would still affect the overall Malta Product.

George sees the MHRA as a moving vehicle. He feels that the challenges evolve, but values have not really changed. Needless to say, he said that it is understandable that priorities would change based on the time and the current challenges being faced.

At a certain period of time the priority centered on connectivity, on other occasions it was about marketing or product development, so the issues MHRA focuses on will inevitably vary from time to time.

George had some encouraging words for all past presidents of the MHRA. He feels that they have all contributed in some way to the development of the Association and he wished the present president every success. George took a step back, kept silent for a few moments and concluded with a sense of nostalgia that over the years, he had held different positions within the industry and still does so to this very day, but was proud to say that he was always driven by the best interest of the sector, independent of the hat he wore, and is confident that he

Matthew, in agreement to George’s statements, expressed his views that

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will continue to do so in the future.

Matthew, who is today leading the Association, is looking ahead towards future challenges. He claimed that presiding MHRA is quite a mission in itself. Having said that, so far he feels rather blessed to having found himself in the seat with quite a serene environment. As he mentioned earlier, he chairs a very united council, and is proud of the permanent staff who he claimed are very diligent personnel and, notwithstanding the fact that they have only four employees, the productivity of the association is nothing short of remarkable.

To name just a couple of challenges that spring to mind, he focused on what he called the main topic right now, being the future of Air Malta, and the importance of it meeting its restructuring targets, for which he is very optimistic as he feels it is now in safe hands. He quickly thought of another issue that MHRA had been lobbying for, this being the excessive utility tariffs the industry had to challenge. The fact that in March 2015 these shall be reduced by 25% he feels is the result of a campaign MHRA commenced an odd four years back.

George had some final words of advice for Matthew, the incumbent President which was to “always be prepared for a rough ride and never be complacent!�

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The Bigger Picture: Local Service, International Needs an Interview with the Malta Tourism Authority CEO Paul Bugeja

The scope of this interview is to understand whether – and at which level, the MTA supports the Forum and shares its vision. Within it, Paul Bugeja discloses the MTA’s views on Mediterranean tourism in general, and on the Forum’s direct effects on the Maltese tourism industry.

INSIDER: What specific value is the MTA adding to the tourism industry in Malta?

Paul Bugeja: The main reason for our existence is to serve our customers, be it tourists that visit our island, stakeholders and operators. In serving properly the needs of our clients the value is relevant and specific.

The specific and designated role of MTA covers the following: • To promote and advance Malta as a tourism destination • To advise Government on tourism operations and to issue licences under the Act • To contribute toward the improvement of the level of human resources in the tourism industry • To advise government on the planning and development of the tourism industry as well as on the infrastructure supporting the industry

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I: Is the tourism industry in the Mediterranean very competitive? If so, how would it be possible for different competing countries to collaborate?

P.B.: All markets are competitive, but we may know the Med market best. The Med countries can collaborate together and benefit if synergies are in place on all aspects, but in particular to the long haul market, creating a single package with multiple destinations, working and collaborating closely in relation to security and visa issues.

I: How will Malta benefit from being involved as an active member of the Mediterranean Tourism Forum?

Malta will be leading the way in ensuring that collaboration between the different countries is achieved, possibly setting up Head Office base in Malta. It is the intention of the Forum that by 2016 a Manifesto would be prepared for the Malta Government in preparation for Malta’s 2017 EU Presidency, enabling Malta to take a lead to push the agenda.

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I: What would you wish to see on the Forum’s agenda?

What should the key priorities / goals and objectives be?

I: What is the MTA’s outlook on sustainability and “Green Tourism” within the Mediterranean region as tourist numbers are set to increase?

P.B.: Closer collaboration on security, visa and related issues. Forging of a clear and well-defined Mediterranean identity which can be developed into a brand.

P.B.: This is a very important matter that should not and cannot be overlooked. We have to be aware that we can spoil the environment, which is the very reason why many visit the Mediterranean region. A balance between growth and the natural environment needs to be considered in each decision, small as it may be.

I: Tourism in the Mediterranean is envisaged to grow to around 500 million tourists by the year 2030 up from around 320 million at present. What is your vision for Malta in capturing a significant share of that growth?

P.B.: The objective would be obtain our fair share as a minimum but to increase arrivals in the shoulder and winter months, whilst retaining and growing the summer months in a sustainable manner.

I: What opportunities exist for product diversification and building long-term development strategies within the region that could attract more Asian and American tourists to the Mediterranean so as to decrease the dependence on the European tourist?

P.B.: I think it’s an issue of marketing in these countries as we are not known at all, plus the usual challenge of ensuring direct connectivity. Numbers can still increase without direct flights, but the growth will naturally be slower.

Paul Bugeja, MTA CEO

I: Your website states that 16% of hotel accommodation covering 5, 4 & 3-star categories in Malta has obtained ECO certification. Would you not say that for an initiative started in 2002 this is a very low number? What are the reasons for this poor response?

P.B.: The industry may not be fully aware of the benefits that such certification carries and more could be done to ensure that this certification is more widespread and recognised. However the percentage refers to share of total hotel accommodation. If one were to express it by share of beds it would be much higher given that most of the larger, higher category establishments have obtained eco certification. It is the smaller, lower category units which are yet to go for this certification.

I: What is your vision for tourism in the Mediterranean?

Where do you see the industry in the year 2030?

P.B.: UNWTO projects that by 2030, the current 320,000 arriving in the Med would increase to 500,000. I think that the figure quoted of 500k is achievable as this shows a reasonable 3% increase per annum. The mix of tourists would be different as we would have more of the Asian and South American tourists visiting in percentage terms.

I: Do you see the MTA as having evolved alongside an ever-changing industry?

P.B.: The answer to this is an unequivocal yes. Tourism is a rapidly changing industry which necessitates an adequate and timely response if the destination’s success is to be sustained. The successes of the past years bear a very direct relationship to MTA’s ability to evolve rapidly and in time to such changes to be able to react to constantly changing market conditions.

I: Do you feel that your experiences during your tenure as MHRA President will enhance your effectiveness as the CEO of MTA? And how so?

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photo: Gianfranco Stellini

"Tourism is a rapidly changing industry which necessitates an adequate and timely response if the destination’s success is to be sustained."

P.B.: Although short-lived, as I only spent some 9 months as MHRA president, the time spent there was extremely important to enable me settle better and quicker in my new role. Having met all the main stakeholders within the period was a great advantage to start off with.

Understanding the needs of the trade from such a wide angle was a pre-requisite.

I: How do you envisage that your extensive experience as Chief Financial Officer in one of Malta’s most respected hospitality enterprises will contribute to MTA? P.B.: Respect to Corporate Governance is surely very important in any task undertaken and which I would bring forward with me to my role within MTA. I: At what stage of its life cycle have you gotten on board the MTA? P.B.: MTA is not a product but an organisation aimed at being a market regulator and a marketing organisation.

It has proven time and again that it is not rigid in the face of innovation and change. I would therefore state that it is performing well but needs to be managed in a way to sustain its adaptability to changing requirements.

I: In which area should the Mediterranean market-player focus the most thoroughly, given the economic conditions and current hospitality trends: performance or turn-around management?

a portion of the crowd at the 2014 Isle of MTV event P.B.: Mediterranean destinations have learnt a lot over the past decades and have changed from being complacent receivers of tourism to aggressive decision makers responsible for their own destiny. However, there is no limit to further improvements and the challenge to convert strengths into opportunities shall always remain.

I: How vital is the Mediterranean region’s health to European Tourism?

P.B.: Very important: suffice to say that over half of world tourism visits Europe and one third of the world tourism comes to the Mediterranean. To paraphrase the famous saying, if the Mediterranean sneezes, world tourism catches a cold.

Mediterranean

P.B.: I think one should focus on performance initially. The volume is there and there is no need for substantial change, except in relation to visa-related issues. Improved connectivity, especially intra-regional connectivity, is also an important consideration if the concept of multi-point travel to the Mediterranean is to grow.

We need to strengthen current inflows, but yield better by spreading the dependence on source markets and ensuring a better spread within the year.

I: Are the Mediterranean market players effectively leveraging their strengths into opportunities for sustaining growth? How better to do so?

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destinations have learnt a lot over the past decades and have changed from being complacent receivers of tourism to aggressive decision makers.

I: How does the vision of the Mediterranean Forum synergise with that of the MTA? P.B.: With a successful Mediterranean Forum, the region would be looking at Malta as the leader in this industry. Additionally, synergies between the countries in the Med will enable Malta to become better known internationally. Malta being exactly in the middle is strategically placed and will always be the centre of attraction.

I: What were the past difficulties MTA encountered prior to your involvement as CEO? What were the challenges which you envisage you will face?

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“We have to be aware that we can spoil the environ-

ment, the very reason why many visit the Mediterranean region. A balance between growth and the natural environment needs to be considered in each decision, small as it may be.”

P.B.: MTA was created fifteen years ago in a market which was much less sophisticated and far more rapidly changing than it is today. Its initial structures reflected this sheltered situation and it had to undergo some drastic re-engineering. It was also born at a time when tourism was almost the only service-related activity in the Maltese economy, whereas today tourism development takes place hand-in-hand with other areas such as financial services, gaming and information technology.

Today’s MTA needs not only to be at the forefront of international tourism developments but also needs to liaise with other service sectors of the Maltese economy to achieve synergies for greater economic benefit. I take over an organisation which generally speaking is sound and functional but which requires some further tweaking to ensure best possible returns of tax payer money which is entrusted to it year after year.

I: Do you see MTA’s values as having changed over time?

Has its mission changed? Its objectives? Should they today?

P.B.: Its overall mission and objectives remain constant, although my message to all staff from day one has been that they need to widen their definition of “clients” to encompass the entire Maltese population, the tourism industry and our bread and butter; the tourists themselves. The internal client - i.e. our employees is also of utmost importance and should never be forgotten. MTA is there to achieve the highest possible value-added from tourism activity for the Maltese economy to ensure that the quality of life of the Maltese people continues to improve further and in a sustained manner.

I: Is Malta important to tourism into the Mediterranean?

P.B.: Malta can play an important and strategic part as we do, and should not form a threat to any particular country. Hence, we can easily be trusted to lead the way.

I: To what extent do you envisage that the Mediterranean Forum could directly enhance Mediterranean tourism performance?

P.B.: To start with, it is already an achievement to bring together so many competitors who are not traditionally accustomed to collaborating. Furthermore, geopolitically the Mediterranean is generally subdivided into Southern Europe, Middle-East and North Africa, thereby making it very difficult for discussions to cover the region. This Forum therefore creates an unprecedented arena for discussion and an opportunity to raise and start tackling issues common to all the area.

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Impressions Industry On the 21st November the MHRA is hosting and organising the Mediterranean Tourism Forum which is expected to attract a thousand delegates from all over the world.

I interviewed two prominent and influential personalities, both industry leaders, and hoteliers for their views on the “Malta tourism product� and the Med Tourism Forum.

The interview was held with Winston J. Zahra, CEO of Island Hotels Group, and Matthew Mullan, General Manager at Hilton Hotel Malta.

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of Tourism Leaders words: David J Dingli

Both strong believers that Malta has tremendous potential as a tourist destination, I challenged them to confirm whether they perceived Malta to be displaying any creative capability in the development of the tourism industry. Winston was first to respond and he expressed his view that over the years the local industry has evolved and developed quite considerably. However, he also admitted that as a destination, we Maltese still need to be more creative in what we do. He does not believe that any creative initiatives should rock the fundamentals on which the Malta product has been built. These, he claimed are strong pillars and should be looked after and nurtured irrespective of how creative Malta is.

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Matthew believes that Malta’s attractiveness is key to any future success and growth. If it gets the development wrong, the result would be the opposite of what we are all aiming to achieve.

Matthew has a foreign perspective to this issue and feels that Malta, although one of many islands in the Mediterranean, is unique since it is an independent island nation that is practically totally dependent on airlift in order to grow its tourism industry and other important segments of the economy. He observed that over the last few years Malta has managed to increase seat capacity by being creative in launching schemes and offers that comply with stringent EU regulations but at the same time are attractive enough for airlines to take up. Initiatives like this have gone a long way in boosting the tourism industry as well as making other areas of economic activity viable.

Of course there is no debate over Malta’s small size in comparison to other countries in the Mediterranean. I was curious to know what they felt are Malta’s competitive advantages as a Mediterranean destination when compared to all other 28 Mediterranean countries. My interviewees were not stuck for words and did not fumble. They are both knowledgeable about what makes Malta an attractive destination. Winston claimed that the island has a number of distinct advantages. Without a doubt, its rich history and culture are a distinct unique selling proposition. Over and above this, he sees the location, excellent weather, the fact that Malta is deemed to be safe, and the people’s hospitality all to be strategic competitive advantages when bundled and packaged together. He was also aware of the main challenge in this regard. It is not whether the Maltese know about these advantages, because in general most people do.

What the real challenge is, he said, is if we really know how to go out and tell people about them in a way that attracts them to our islands. His opinion is, he feels, that they haven't yet been effectively branded and this is an area which needs to be focused on if Malta wants to develop its product and grow its market share in the Mediterranean.

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Matthew was a bit more hesitant on how much to promote the weather as an advantage. The climate in Malta matches that of any Mediterranean country so it cannot be taken as an advantage. In Malta’s case, he feels, a perfect quote would be “Small is beautiful – and efficient, easy and relaxing”. What amazes Matthew is that the islands’ history has left a legacy so fascinating and diverse that the amount of sites to visit is mind boggling for an island this size. The Maltese have adopted many features from the various colonisers of the past, including a language that has Semitic roots but includes European influences, and a Mediterranean style of British efficiency. The islands’ size make touring and visiting very accessible and easy, facilitating a good mix of culture and relaxation. I smiled as I feel my life on the island is one big rush; but then, I’m not on holiday and despite my global travels, while in Malta, I still feel that driving to Mellieha from Swieqi is “far”. Matthew believes that we need to listen more to our visitors so as to identify what it is that they feel provides them with a unique and innovative experience.

I discussed the fact that, if as they both claimed, Malta has competitive advantages and wishes to increase its market share of the Mediterranean tourist it must face a number of challenges to see this through. Winston, being a strategist, sees things from a top down perspective and realises that the major challenge is that we need to approach the development of the overall product in a more holistic manner. “We need a clear strategy to develop and promote Brand Malta”.

He states that unfortunately there is no clear master plan for the island which clearly spells out what needs to develop and where. Projects are being looked at on a project-by-project basis without due consideration being given to the big picture. There is no doubt, he claims, that if the latter is not properly looked after, then we will lose our way in the medium to long term.

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photo: the Hilton Malta Hotel's outdoor area Matthew took a numbers and capacity perspective with respect to the challenges being faced. He stated in no unsure tone “The fact is that we are dependent on airlift!” The number of flights needs to increase – especially in the low and shoulder months – in order to allow further growth and diversification into other areas like conventions in these periods. Winston also intervened on this point and it is clear to both that we must ensure that seat capacity is optimised. Evidently, the perspectives of Matthew and Winston were shared by one another; the market requires collaboration with strategic partners who make up the tourism product and this includes the airlines.

Another specific and concerning challenge Matthew was keen to mention was related to the space available to develop. He advocates that Malta must take great care of what legacy is being left behind and future developments should be handled with great caution and attention to ensure that the product is maintained and improved.

Great inroads have been made into upgrading the general product and infrastructure. But he feels that roads, embellishments and cleanliness still require further emphasis, and attention to these areas is crucial if Malta wants to maintain its place and market share. So I felt that he was agreeing with Winston’s desire to see a clear master strategic plan for the country as far as tourism is concerned.

Winston picked up on my mention of strategic partners in the industry and explained how over the past years the stakeholders in the industry have come much closer together and worked towards common goals. He believes that this has been a key reason behind the success of the past few years within the tourism industry. He warned that the danger is that as numbers remain strong the temptation creeps in for everyone to get excited and start doing one's own thing with insufficient regard for the bigger picture. This could be dangerous and if not nipped in the bud could have serious conse-

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quences. Matthew felt that more needs to be done. Whilst organisations like MHRA and FATTA help to keep the industry in sync, there is obviously room for more cooperation and better planning. He was very encouraged to hear the MHRA talk about a vision for the next 30 years. It is clear that if a clear plan is launched then the industry can work towards those targets and goals and plan better for the future.

At this point I turned the discussion onto a topical issue; something that can play a very significant role in Malta’s future development of the industry. I wanted to hear their opinions on Malta’s “Green Tourism” product and image. Winston took this opportunity to make some pertinent statements in this regard. He explained that a lot has been said, but not enough done in this area over recent years. Malta needs to be much more committed as a nation towards the overall development of Green Tourism. Much more needs to be done to encourage developers to take Green initiatives into consideration both during the development stage and thereafter in the operation of the building developed. Ultimately, he insists, there is nothing like financial incentives to make things happen in this area. He admits that this shouldn’t be the reason but he was being a realist and acknowledged that this is the only practical motivator that has driven people into taking specific action in the past. Matthew’s take on this point was that his area is growing in importance and the larger players in the industry have taken this on board with significant investments made to ensure that they have a more eco-friendly operation. The challenge, he warned, is to keep this on everyone’s agenda and incentivise medium and smaller businesses to take this on board.

We can all claim what others should do and my interviewees both work in the hotel business. Here they were discussing eco-tourism and sustainability so I challenged them to tell me what their organisations are doing in this regard. Winston promptly explained

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that for many years Island Hotels Group has implemented a sustainability programme in the way they operate.

Primarily the hotels that they have developed locally have in their majority been developed on committed land.

They had bought old hotels and transformed them into new products thereby not impinging on virgin land and not increasing room stock substantially. The group also run a responsible business programme internally which includes many facets from the way they produce their own water and recycle drainage to the way they purchase their produce. He claimed that more often than not it has also been more economical operating in this way which is something many people do not immediately comprehend.

Matthew, a member of a worldwide chain of hotels - Hilton Worldwide, explained that this is something Hilton have and continue to put a significant amount of effort and investment into.

The list of initiatives was too long to mention, and he decided not to even bother trying. Everyone can read about what Hilton do in terms of sustainability and Green Tourism. However, various programmes and structural changes have been made over the years to reduce the hotel’s carbon footprint and make the operation as energy efficient as possible. In fact, Hilton has been granted the Eco Certification by MTA since they meet and even exceed the necessary criteria for this.

In management, we are constantly faced by dilemmas. Malta is a small island, where on one hand, we wish to expand the tourism industry and register growth, implying more economic development to sustain that growth.

At the same time, Malta needs to protect its fragile environment, land, sea and biodiversity which in themselves are critical to attract tourism in the first place. I tested my interviewees’ capability to take a position in this regard. Winston outlined the fact that Malta being small makes this area all the more important. Ultimately, if all stakeholders do not do things in

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a responsible way then the industry will suffer in the future. Malta cannot afford not to look after its environment, and every day that goes by ignoring it is an opportunity lost.

Again he recalled what he said earlier that this is where a clear master plan is needed to ensure that Malta develops the right products in the right areas on the island without losing its charm and identity.

Matthew too realises the sensitivity of the issue and mentioned the fact that any further development needs to be done very carefully. Malta’s attractiveness is key to any future success and growth. If it gets the development wrong, the result would be the opposite of what we are all aiming to achieve. He wanted to mention another point to keep in mind: that we should all focus on growing the business during the low season, that there is still ample capacity to fill. He posed question: “who do we target to fill that space?” He shared his admiration for the fact that MHRA are working on the set-up of a Convention Bureau for the destination and that this should go a long way in addressing this issue, but claims that more could be done. He mentioned, as possible examples, the creation of events that appeal to people combined with further marketing and maximising the wonderful heritage and sites that are available.

Once Matthew mentioned the MHRA, I turned their attention to the MHRA’s initiative to establish a Mediterranean Tourism Forum to unite all Mediterranean countries under one umbrella with regards to the Tourism Industry. As businessmen and hoteliers, I wanted to know how they perceived this Forum. Winston was upbeat and promptly said that the Forum is a very good idea and that the Island Hotels’ Group had supported it from inception. He shares the MHRA’s idea that the more the region works together for the common good, the more each destination, including Malta, can gain out of the initiative.

Winston sees the location, excellent weather, the fact that Malta is deemed to be safe, and the people’s hospitality all to be strategic competitive advantages when bundled and packaged together.

Matthew gave me a one-word answer: Definitely!! He then elaborated and explained that for the 2nd year in a row the Hilton Malta is very proud to be hosting and sponsoring this event.

Such a forum will help to create new ideas and possibilities for future business and growth in the region. In addition, he feels, this is exactly the type of event we need – something that brings people together from all over the world and that will happen at the same time every year. He sincerely hoped that this forum will continue to grow and develop into being an international forum attracting travellers to Malta’s shores every November.

Radisson Blu Resort & SPA, Golden Sands, Malta.

The hotel, managed under franchise from Carlson Rezidor Hotel Group, forms part of Island Hotels Group Holdings plc, of which Winston is CEO.

I was coming to the end of the interview, two busy people giving me so much of their time. The focus was now on the future and their personal vision for tourism in Malta and the Mediterranean. As business leaders I wanted to know what scenario they were picturing ahead. Winston strongly believes that Malta is very well positioned to take a quality leap in the tourism industry. Malta is a jewel of an island but we Maltese need to ensure that we put the right master plan into place for the overall development of the tourism product and create a clear brand around it. Malta, he envisages, can be a centre of excellence in tourism as long as there is a very clear strategy going forward and all players in the industry must be ready to make the necessary effort to raise the bar significantly on the overall product and service offering. If Malta can achieve that, he smiles; then within the next few years we can be an island destination that rivals the very best. Matthew too has a very positive outlook on Malta’s tourism future. At this stage, he explains, the Mediterranean is an area that is very volatile, with uncertainty down south due to the effects of the Arab Spring and economic challenges up north. However this area has always been considered a ‘Must See’ by the international traveller and he is very confident that if Malta continues to focus on sustainable development

Evidently, the perspectives of Matthew and Winston were shared by one another; the market requires collaboration with strategic partners who make up the tourism product and this includes the airlines. and correct enhancements then the future will be bright. It is imperative, he goes on rather enthusiastically, that the focus on numbers changes to one on quality. The same applies to the Mediterranean as a region. The idyllic way of life combined with the history, culture, climate and gastronomy of the Mediterranean cannot be beaten by any other region in the world – and it has been like this for centuries. Thankfully some things never change!

I was energised by the positive outlook of these fine gentlemen: inspired, keen and excited about the future of Malta and its tourism product. I pondered on the fact that a holistic strategy is not yet in place and I did express my concerns on the sustainability formula for the country. However, overall Malta should prosper. We have what it takes to challenge and compete with other wonderful destinations in the Mediterranean and the world.

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Flying the PRIDE OF MALTA Responsibility of Malta’s national airline is no mean charge: the access the airline gives to and from the Maltese Islands provides a pivotal role in the success of Malta’s tourism product.

Air Malta CEO Philip Micallef spoke to us about the airline’s strategies, how Air Malta sees the tourism industry developing in the coming years, and what Air Malta’s role should be in this.

INSIDER: Business as usual? Or a strategic shift?

Philip Micallef: It is neither business as usual nor a strategic shift. We are currently in the midst of a five year Restructuring Plan agreed between the Government of Malta and the European Commission. This is our plan and it is now our priority to continue meeting the plan’s obligations and commitments.

I: How do you envisage that your extensive experience garnered through your C-Level Posts throughout your illustrious career will differentiate your efforts at Air Malta?

P.M.: I have worked for nearly thirty years in both the private and public sectors with different organisations in Malta and abroad. This experience should help me in continuing the work started by my predecessors and accelerating it to transform the company into one which thinks and acts as a truly commercial company. In all my posts, my main work involved change management, and implementing change management at Air Malta is

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a continuous process to always strive to improve the way things are done.

My experience over the years in all the countries I have worked in has taught me that two ingredients for any successful organisation are communication at all levels and teamwork across the departments.

Communication and team work are top on my agenda at Air Malta and I must keep building on the good things done in the past.

I: What specific value is Air Malta providing to the tourism industry in Malta?

P.M.: Air Malta is the most important airline for the Maltese islands. It not only accounts for over 40% of the total number of tourists but it is intrinsically tied to the islands. Other airlines have their own values but Air Malta’s values are tied to the values of the islands.

I: How would Air Malta fit in as a supporting arm of the Mediterranean Forum initiative?

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P.M.: For centuries Malta has played a strategic role in the Mediterranean. This role, and the continued development of the ties between the countries of the Mediterranean basin has been made easier through the facilitation of travel arrangements between the countries.

Throughout its 40 year history Air Malta has assisted the development of these ties, be they cultural, business or tourism opportunities. Such a role will continue to be played so as to better support the Mediterranean Tourism Forum initiative.

I: Is Malta benefiting from Air Malta’s destination branding efforts?

P.M.: Air Malta has recently undergone a successful rebranding exercise, where its vision is to fly the Pride of Malta. It has positioned itself as being 100% Malta and delivers 100% on the Maltese difference. We are working to be the ambassador and guide to all that Malta has to offer.

Such branding clearly promulgates Malta’s branding efforts, benefiting the islands against competition.

I: What can you tell us about Air Malta’s presence, objectives and commitments towards the Mediterranean region?

P.M.: Since its inception and start of operations in 1974, Air Malta has operated a multitude of services between North Africa and European destinations. Throughout these 40 years the airline has provided a consistent, reliable service, effectively connecting the Mediterranean region through Malta. There is a lot more that can be done in terms of additional services and cooperation between the countries and Air Malta is committed to continue fostering and facilitating opportunities in the Mediterranean region.

I: Should Air Malta strive to leverage the fact that Malta is indeed located so centrally within the Mediterranean? And if so, why and how is it doing so?

P.M.: Air Malta has been leveraging Malta’s strategic position at the

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Air Malta has recently undergone a successful re-branding exercise, where its vision is to fly the Pride of Malta. Such branding clearly promulgates Malta’s branding efforts, benefiting the islands against competition.

heart of the Mediterranean. The airline’s flights between North Africa and Europe are timed so as to facilitate travel between the two regions. Such scheduling is especially important to facilitate business opportunities.

I: Is the tourism industry in the Mediterranean very competitive for passenger airlines? If so, how would it be possible for different competing countries to collaborate?

For centuries Malta has played a strategic role in the Mediterranean.

Such a role will continue to be played by Air Malta so as to better support the Mediterranean Tourism Forum initiative.

P.M.: Airline competition in the Mediterranean region is high. However there are good opportunities for collaboration between airlines where their schedules can be synchronised to facilitate feeder traffic in the region.

I: How will Malta benefit from being involved as an active member of the Mediterranean Tourism Forum?

And how will Air Malta benefit from Malta’s being so involved?

P.M.: The Mediterranean region is the world’s leading tourism destination in terms of international and domestic tourism. It accounts for over 300 million tourism arrivals every year, one third of total arrivals worldwide. By discussing ideas and sharing information through such forums both Malta and Air Malta can exploit opportunities that the region has to offer.

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I: What would you wish to see on the Forum’s agenda?

What should the key priorities / goals and objectives be?

P.M.: One of the key priorities should be the facilitation of travel and formalities between countries of the region whether they are within the European Union, North Africa or the Middle East. Through a Visa facilitation program, every country would benefit, making travelling to and within the Mediterranean region easier.

I: Tourism in the Mediterranean is envisaged to grow to around 500 million tourists by the year 2030, up from around 320 million at present. What is your vision for Air Malta in capturing a significant share of that growth?

P.M.: Malta attracts around 1.5 million tourists a year.

We have to be realistic and understand what the country’s infrastructure can handle especially in the peak summer months. However, I believe there is strong potential for growth for both Air Malta and Malta during the lean winter months, thus reducing the seasonality of demand.

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I: What opportunities exist for product diversification and building long-term development strategies within the region that could attract more Asian and American tourists to the Mediterranean so as to decrease the dependence on the European tourist?

P.M.: Air Malta has entered in code-sharing agreements with Air France, Lufthansa and Emirates amongst others.

Such airlines offer a vast network of destinations. This type of collaboration enables airlines to facilitate the selling of seats and align their schedules thus making travelling connections easier.

I: Do you see Air Malta as having evolved alongside an ever-changing industry? And do you see Air Malta’s values as having changed over time? Has its mission changed? Its objectives? Should they today?

P.M.: The airline business has seen rapid changes over the last decade. Likewise, Air Malta has seen a continuous period of change in these last years. More

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The AirMalta CEO Mr Philip Micallef

so we are currently undergoing heavy restructuring that is envisaged to drive the airline into the black by 2016.

I: At what stage of its life cycle have you gotten on board Air Malta?

P.M.: I joined Air Malta whilst it is undergoing restructuring. It is imperative that we continue to meet the obligations of this plan, which I, together with my team and together with the support from various stakeholders, will drive. It is imperative that we ensure the future sustainability of Air Malta beyond the restructuring plan.

I: In which area should the Mediterranean market-player focus most efforts, given the economic conditions and current hospitality trends – performance or turn-around management?

P.M.: I believe that you cannot lose sight of either, especially during a period of heavy restructuring. It is vital however not to lose sight of your core values.

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I: Are the Mediterranean market players effectively utilising their strengths into opportunities for sustaining growth? How better to do so?

P.M.: All Mediterranean countries, although they share a similar common history, have unique characteristics and have a rich cultural and historical heritage. I believe that together, Mediterranean countries can build longterm, complementary development strategies and increase regional cooperation that will help them face the challenges that the whole region is facing. These include political turmoil, the economic situation, and environmental issues.

I: How vital is the Mediterranean region’s health to European Tourism?

P.M.: Tourism is a major pillar of Mediterranean economies. The World Tourism Organisation tourism estimates that 215 billion Euro are generated in export earnings from international tourism. In Malta tourism accounts for approximately 25% of the country’s GDP. Such data shows the impact of tourism on the Mediterranean countries and the importance of the region for European tourism.

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The Film industry is a lucrative one for the Maltese Islands. The challenge is always to attract new talent while managing the needs of this market, ensuring the sustainability of this alternative type of tourism. The “tourist” in this case is historically very demanding and often creates significant infrastructure pressure, but the rewards are very significant. Malta Film Commissioner Engelbert Grech, answers some questions posed by Jason Attard about the peculiar challenges of this demanding tourism category.

INSIDER: Are the tourism and film industries intertwined? How so?

I: How can hotels cater for the particular needs of film crews and production teams?

Engelbert Grech: Around the world, the concept of 'Screen tourism' is gaining a lot of momentum. Research shows that films and TV series are responsible for attracting tourists. A good example is New Zealand, a country that boosted its tourism thanks to franchises like ‘The Hobbit’ and ‘Lord of the Rings’. In Malta we need to capitalise more from the achievements of the Maltese film industry.

E.G.: Hotels can benefit particularly in the shoulder months. The Film Commission strives to have a backto-back flow of productions and thus, hotels can play a very important role in this sector. Naturally in an industry where budgets are of utmost importance, the need to offer affordable solutions and flexibility is paramount.

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Malta Film Studios is best known for its equipped water tanks,which are amongst the largest in the world.

I: Which specific services do film crews require from hotels, restaurants, and the tourism industry in general?

E.G.: Film crews are best seen as regular tourists. The specific services which make life easier for film crews staying in hotels as opposed to private apartments would primarily be having easy access to a number of facilities.

Film crews working round the clock would certainly require a 24 hour service, so opting for a hotel would be the normal choice for them. Furthermore, if hotels are to attract productions to set up their production offices within their property, flexibility and affordable rates are definitely a priority.

I: How does the film industry contribute towards tourism?

E.G.: The film industry puts Malta on the international map. However screen tourism products need to be developed to further capitalise on this phenomenon. Besides Popeye Village, Malta has no other film related tourism products which interested tourists may access. In view of this reality, the Film Commission is currently collaborating on a Webbased movie map which will serve to help tourists in discovering Malta’s favourite film locations.

I: Why should film producers and/or directors choose Malta for their production base?

E.G.: Malta is an attractive destination to filmmakers. The competitive incentives, the authentic architecture and the water based filming facilities give Malta a level of versatility as a location, which is a considerable part of the appeal to international producers.

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Without doubt, the recently upgraded cash rebates have certainly placed Malta as a competitive country in the hub of the Mediterranean on the world map.

show that not only there are enough service providers but also a good number of available crew.

I: What do the water tank facilities contribute to Malta’s film product?

I: Is it complicated to access funding and acquire permits for shooting and for post-production marketing in Malta? How do you facilitate such matters for the film industry? What ought to be improved in order to make it yet more attractive to them?

E.G.: The Malta Film Commission aims to make life easy to production companies by reducing red tape when it comes to obtaining location permits and when applying for a VAT refund. A permit for a film cannot be given the same terms and conditions as building a block of flats – so the Commission is determined to provide the best service possible by going into the finer details to ensure that the system is efficient and straightforward, tailored to the production’s specific needs. Every day on set is worth a lot of money so we need to ensure that the process is expedited to get everything done as quickly as possible.

I: Do we have sufficient service providers to serve all facets of the film industry?

This year we had a situation where we had four major concurrent productions filming in Malta. This goes to

E.G.: Malta is home to world class water tank facilities, enabling productions to shoot large and small scale water based scenes. It is among the largest in the world and one of the very few to operate with a natural sea horizon as a backdrop. The tanks are a strong incentive towards our film industry, therefore we should continue furthering our investment to ensure that our water facilities remain a competitive element to attract productions.

I: Could you provide our readers with advice on how to best serve the film industry (with particular reference to our Hoteliers, Restaurateurs, government bodies and professional service providers)?

E.G.: I can say with confidence that we have a good standard of service available to filmmakers. However if we really want to stay ahead of the game in terms of the services that we provide, we must raise our professional standards, continue investing in training and education of our workforce and give them the continuous professional development required throughout their career.

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HOTREC: Europe's 'Voice' of the Hospitality Industry

by Jason Attard

Apart from her involvement as Vice President, and as from January 2015, as President of HOTREC, Susanne Kraus-Winkler also sits on various committees of tourist representations at national and international level. She is also a lecturer for tourism and hotel real estate and hotel management at various universities. She is a leading source of knowledge on European tourism in general.

HOTREC was founded in 1979 under the name of “Liaison Committee of the Hotel and Catering Industry of the European Economic Community”. In 1982 it became an international association under French law with the membership of the following countries: Belgium, Denmark, France, Germany, Greece, Ireland, Italy, the Netherlands, Luxembourg, Portugal, Spain and the United Kingdom.

Since HOTREC has moved to Brussels in 1992, its image has been growing steadily and its activities multiplied to currently be the umbrella association of hotels, restaurants, cafés and similar establishments across 27 European countries including Malta; and therefore the ‘Voice’ of the hospitality industry to the EU Institutions.

Insider has sought to highlight via this interview her core competences, experiences and skillsets and understand how they will facilitate her role and HOTREC’s mission. The interview has moreover sought to understand HOTREC's views on the importance of a united Mediterranean for Europe's hospitality industry.

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HOTREC ensures that its member associations are kept abreast of any developments affecting the hospitality business and that the sector’s positions on key legislative issues are well taken into consideration. Where the interests of the European hospitality industry are at stake, HOTREC expresses the concerns of its member associations to the EU representatives. In parallel, HOTREC contributes to the EU institutions’ policy work by participating at all kind of discussion fora. In pursuing its objectives, HOTREC also maintains close relations with other interest groups, and develop partnerships, alliances and platforms with the relevant stakeholders depending upon the issue. This dialogue enables the participants to coordinate their views on issues of common interest and multiply their influence in EU policy making. For instance, HOTREC has been the founder of NET, the “Network of European Private Sector in Tourism” and therefore, in close cooperation with other tourism industries, speaks with one voice to the EU Institutions.

“The Mediterranean Forum together with the wide range of additional stakeholders can work together to improve the competitiveness of their respective regions through a variety of policies, practices and targeted programmes”

Insider: Has HOTREC’s mission evolved alongside an ever-changing industry?

Susanne Kraus-Winkler: HOTREC’s main activity is to monitor and analyse policy developments at EU level that have an impact on the hospitality industry and therefore to lobby the European Institutions to ensure the most favourable business environment. Over the years the hotel, restaurant and café sector has been facing an ever-increasing volume of European Union legislation.

HOTREC also acts as a best-practice sharing platform among its Members on all kind of regulatory and business issues, be it legal, marketing and social. This service has become one of HOTREC’s main benefits to its members, next to European lobbying.

I: The HOTREC Mission specifies that it “acts as the representative of the hospitality businesses vis-à-vis the EU institutions.” Am I correct therefore in understanding that HOTREC is primarily a European-level lobbying Group? And if so, could you please elaborate?

SKW: By monitoring policy developments directly at the source and working in close cooperation with EU policy and decision-makers,

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Current issues include Online Travel Agents’ conditions and terms for hoteliers, the development of the shadow hospitality economy in an uncontrolled way, not to forget the following legislative issues: the Travel Package Directive; the Visa Package; Data Protection; Food related issues and Payment Cards and all issues related to sustainable tourism.

I: How vital is the Mediterranean region’s health to European Tourism?

Over 80% of tourists visiting the Mediterranean come from Europe, mostly from northern and western countries.

Germany is the largest market, followed by the United Kingdom, France and Italy.

SKW: The Mediterranean region, including both the northern and southern shores, is the principal tourist destination in the world. Consequently, tourism plays a vital role in the economies of the region, acting as a significant source of economic growth and employment.

Over 80% of tourists visiting the Mediterranean come from Europe, mostly from northern and western countries. Germany is the largest market, followed by the United Kingdom, France and Italy. Spain, France, Italy and Greece receive almost 80% of Mediterranean tourism.

Within the wider Mediterranean region, the Mediterranean countries have, over the past decades, recorded the highest growth rates of inbound world tourism. The Mediterranean receives around a third of the total income of global tourism.

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I: How does the vision of the Mediterranean Forum synergise with that of HOTREC? SKW: The tourist industry in the Mediterranean is faced with a number of key challenges that will influence its longerterm development and success. These challenges effectively set the agenda for public policy action and include managing globalisation and changing markets; appreciating the economy-wide impact of tourism; combating climate change and sustainability; harnessing the knowledge economy; strengthening human resources; and managing the impact of political changes. We therefore have a key role to play in effectively meeting all these major challenges.

I: To what extent do you envisage that the Mediterranean Forum could directly enhance Mediterranean tourism performance?

SKW: The Mediterranean Forum together with the wide range of additional stakeholders can work together to improve the competitiveness of their respective regions through a variety of policies, practices and targeted programmes. These policy actions should include proposals to improve the wider institutional framework in the tourist

destinations of the region so that the business environment is more conducive to the growth of a sustainable form of tourist industry. New policy initiatives that are relevant to local and regional authorities, who wish to promote sustainable tourism in their respective localities, and thus enhance Mediterranean tourism performance, should be implemented.

I: Education or experience? Which of the two is more important to the industry?

SKW: Both education and experience are very important for the hospitality industry. The combination of experience and skills training customised to the employers/industries needs is key to meet the skills needs of the tourism sector and to foster the competitiveness of enterprises so that they continue to create plenty of job opportunities and quality employment.

There is absolutely a need to have a better comprehension of the skills needs in the tourism sector and we have recently launched with the European Commission the first Hospitality Skills Passport to foster professional mobility within the European Union.

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Trainings on the new skills/education that will be required by the tourism sector in the near future is key to enhance the competitiveness of the companies and to keep on creating employment. Therefore, detecting/anticipating the future skills needs of the industry is essential to deliver the adequate/appropriate trainings.

However, please remember that our industry gives first job opportunities to non-experienced workers which enables them to enter the labour market for the first time without any particular expertise.

I: How do you envisage that your extensive experience within the hotel and restaurant sectors will enhance HOTREC’s effectiveness?

SKW: We must not only look at the issues from a technical and legal point of view. We must include the soft values and interpret the times, we are living in, combine political, legal and emotional values in order to be successful in the coming years. I shall bring to HOTREC my passion for our industry and enthusiasm in whatever I undertake. My 35 years of practical experience in the hotel and restaurant business and 25 years of managing the family owned hotel and restaurant business, many years of practical experience in tourism consulting and lecturing at several universities as well as the years of experience as an industry representative on regional, national and European level will bring an additional value to enhancing HOTREC’s effectiveness in carrying its mission.

I: What are your views on education in general for Europe’s hospitality sectors?

SKW: Improving people's skills and better utilising the skills potential is a win-win situation for all: for employees, for employers as well as for economy and society. Employing workers with the adequate skills is also key to foster competitiveness of companies and to continue creating employment.

The hospitality industry alone employs more than 10 million workers in the EU, spread out across 1.8 million enterprises.

This represents 4,5% of total employment. In recent years, the hospitality industry has been one of the fastest-growing sectors in Europe in terms of employment. In the decade 2000-2010 our industry alone created 2.5 million jobs.

This means an employment growth rate of 29% compared to 7.1% in the overall economy. High quality client service, provided by adequately skilled staff, is the key precondition for surviving and growing in an increasingly fierce competition. Disregarding the growing cake of tourism arrivals and expenditures, the future and the ability to keep the position of Number One destination will depend, inter alia, on the quality of the incoming workforce.

It is therefore essential here to mention the critical lack of

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“The combination of experience and skills training customised to the employers/industries needs is key to meet the skills needs of the tourism sector” skilled workers in our sector and unfilled jobs. Just to take the example of Germany, nearly 10.000 jobs remain unfilled in the hotel sector and 20.000 in the restaurant sector (source: Federal Employment Agency). In Austria, 13,000 waiters and 9,500 chefs are still missing for 2014. Therefore, awareness-raising campaigns on the values and the benefits of the hospitality industry as well on education and training opportunities should be developed at European and national level as we are doing in Austria through TV and social media campaigns to encourage young people to join our sector.

I: And in particular in regards to our lower-tier workers?

Is education / more education necessary? And is it suitably available in the Mediterranean?

SKW: Our sector provides job opportunities for all kind of workers. In fact, up to 33% of the workers are relatively unskilled compared to 20% in the overall economy. This means that our industry is the entry door for many employees who are unqualified or students who are getting their first job, and who will encounter difficulties in accessing employment opportunities in other industries.

The sector is also fighting youth unemployment as 20% of the people employed are aged under 25. We are participating actively in all initiatives of the European Commission in order to help SMEs attract the right talents and the adequate skilled workers (ESCO, Study to map the skills needs of the future in the sector, Hospitality Skills Passport, etc).

Once again, we need to better promote the values and benefits of our industry and to better communicate the many opportunities we offer in terms of career development.

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The Man behind Corinthia words: David J. Dingli

Alfred Pisaniâ&#x20AC;&#x2122;s international hotel chain started with a restaurant funded by a bank loan, which he converted into the first Maltese-owned five-star property, the Corinthia Palace Hotel, before eventually turning his attention to several capitals in Europe.

Today Corinthia is an international brand. But although he has created a management structure that is the envy of many companies, he remains involved in every aspect of the business and still harbours a desire to do bigger and better things.

This interview provides an insight into the man who for many years has been one of the pillars of Maltaâ&#x20AC;&#x2122;s tourism industry.

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Insider: You founded the Corinthia Group and were responsible for the construction of the Group’s first hotel, the Corinthia Palace Hotel in Attard, Malta, in 1968.

When you look at this hotel today, what thoughts and memories pass through your mind?

Alfred Pisani: This hotel has such a special place in my heart that it brings back a flood of memories, stretching from the planning stages when I carved out, by sheer determination, our first hotel, acting as the contractor and project manager, believing I could do it faster and cheaper – now 52 years on.

Corinthia was set up in December 1962 following the acquisition of Villa Refalo by my father in 1959. We worked tirelessly following his untimely death to set up and operate what was considered to be one of Malta’s best restaurants. Following Independence in 1964, the government took various initiatives to support entrepreneurs who were keen to develop the island in various directions. I grasped this opportunity with both hands and opened the first five-star hotel owned by a Maltese company in June 1968.

I will never forget the official opening – which was attended by Prince Philip The Duke of Edinburgh, together with the Governor General Sir Maurice Dorman as well as our Prime Minister George Borg Olivier and the Archbishop Michael Gonzi. For me it was satisfying to witness the culmination of a project I had been dreaming about for years. The hard work didn’t stop there, however. From day one, we wanted Corinthia to be at the forefront. So we introduced the concept of conference business to Malta and also installed a spa – which has become a hallmark of several of our hotels today. In the process we also unwittingly become one of the drivers of Malta’s developing tourist industry.

I: How much of your personal success would you associate with your education and upbringing other than being in the right place at the right time?

A.P.: Everybody is in the right place at the right time. The key is being aware that you are. We encounter endless number of opportunities on a daily basis. The problem is that we are often oblivious to their existence. I believe that all knowledge of what has gone before us and what we have yet to discover already exists. This is an energy that runs through all of us and, if we look hard enough, it enables us to see things beyond the obvious.

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The hotel which started it all the Corinthia Palace Hotel and Spa in Attard From the age of seven I was a boarder at St Edward’s College where discipline was very much a bi-word. Nevertheless, I don’t really think my character has been fashioned by a particular event or outside influence. It’s more closely related to my obsession for detail and creativity. And of course sheer hard work. This is something that I can’t really explain, but it has been an innate part of me as far back as I can remember. When I got my first job at the family-owned flour mill in Marsa, I had the choice to be driven down with my father in time for 8 a.m. opening of the office, but I instead chose to get up at 6 a.m., taking the bus and walking to the mill, simply to serve our clients one hour earlier.

Daily, we come across endless amounts of opportunities, but we are oblivious to their existence.

We all are what we are and no doubt the environment, the upbringing and various other influences either enhance or dampen our talent, but then much depends on your will to better yourself. On the other hand, I strongly believe that with perseverance and dedication, coupled with passion, everyone may reach greater heights. Deep passion and conviction enables us to do seemingly impossible things. Given a choice I would opt for passion over knowledge – because it is something that cannot be taught.

I: Who are the people in your life that have influenced you the most through either their capability to mentor you, inspire you or advise you?

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As a country we have come a long way, of course, and Corinthia now has a well-established organisational structure with professional and experienced executives heading all areas. This is a far cry from where we started off. It was immensely difficult for us to establish ourselves in foreign markets, armed with limited finance and experience. I met a bank manager in central Europe once and his opening question was: So, where is Malta ?” We certainly have come a long way!

I: How do you spend your time? What would a typical day at work be for you?

How I spend my time depends to which period of my life you are referring to. In my 20s I left home at 6 a.m. and did not return before 11 p.m. Breakfast and lunch did not feature in my day. My obsession was to get things done and anything relating to my physical took very low priority.

Over the years I have matured and, in a fashion, became wiser. Working with a professional team of people, and having managed a handover of many of my functions over a number of years, I am now satisfied that I have invested my knowledge into those around me.

Corinthia has five hotels in the Mediterranean. photo: the Corinthia Tripoli Hotel A.P.: I cannot really pinpoint anyone or anything in particular. The energy that inspired me was the commitment to turn the financial burden of maintaining the palatial Villa Refalo into a business to make ends meet. I simply rose to the occasion and did what I could in the circumstances. I truly don’t believe that I ever thought of following in anyone’s footsteps. I went through life charting my own course and directing all my energies into moving forward, whatever the obstacles. My mentor was my total commitment to do what I had to do without compromise or delay.

I: What specific challenges have you faced (do you face) when running a diversified Group of companies?

The biggest challenge was starting a company with no capital. We needed a loan to open the first Corinthia restaurant, and every penny for the subsequent hotel came from the bank. This presented me, as a 24-year-old, with huge challenges. However, unknown to me at the time, little did I realise the restrictions that one faced when working in a small island with limited human resources and a small home market, and more importantly still conditioned by the hangover from the colonial mentality. This challenge became more accentuated when we came to take our first step abroad.

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I: When running a large international organisation it is not possible to know everything that is going on everywhere at all moments in time. How do you decide what to focus on to ensure that you are on top of things and can take appropriate decisions?

A.P.: There are two extremes: on one hand, you have a person who is asleep and is totally unaware of what’s going on around him; on the other, you have those who are totally awake, possibly even during their sleep, with their antennas constantly alert to what’s going on around them. So firstly, we must all keep this part of our talent focused.

The major ingredient necessary for leadership is initially to respect others in authority.

Secondly, it is up to those in charge to identify the right executives, empower them with responsibility and ensure that most issues are handled by capable assistants. Major policy issues are handled by a number of CEOs working in different companies, who then provide updates on a regular basis to ensure a cohesive understanding of the demands at hand.

I: Would you consider yourself a leader of people? What leadership style have you adopted in your career? Has it always worked or did you ever need to change it?

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The first thing you need to become a successful leader is respect for others in authority. Leadership is the self-confidence to help others where they require guidance. Leadership is sharing your knowledge and your compassion with others. Leaders are constantly in demand – for advice, for inspiration and assurance. Ultimately, the proof of successful leadership is the ability to bring out the best in others.

We all change over the years. In my early 20’s I had a dominant style with zero tolerance. Everything then was black and white. But as you gain experience, you come to accept compromise as there is far more gain in moving forward together than directing our energies to combat each other. Through time, we learn to accept a lot of grey, and we succeed more by motivation and respect.

I: Last December you awarded 77 Corinthia Malta employees with five to 40 years of uninterrupted service. What environment have you created to ensure that people will want to remain working for the Corinthia Group?

A.P.: We are very fortunate. Every year we honour all those employees with a long service record. Many have been with us for more than 30 years. I think that says a lot about our company. The hospitality industry is a ‘people’ industry and you are totally reliant on people who do their work well, willingly and with a smile that comes out from the heart. I believe that our working environment encourages this. We aim to work as a family, sharing respect and our knowledge and working in an environment that is wholesome and positive. This is what we call the Spirit of Corinthia.

I: The Corinthia Group is today at the forefront of the hospitality industry with existing hotels and new developments in various destinations, the latest of which is the flagship Corinthia Hotel in London. Where do you see the group in the long-term future, say in the year 2030?

A.P.: We have great ambitions for the future and I am convinced we are on the threshold of significant changes to ensure the global reach of Corinthia.

Very few people know that the Corinthia Group encompasses many facets: we are developers; we are investors; we are hotel

I am a firm believer in the potential of this country. Few countries in the world match Malta for what it possesses in its small size.

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This photo presents the internationally revered Corinthia Hotel London. operators with the Corinthia brand managed by Corinthia Hotels International; and also project managers through our subsidiary, QP Management.

I: Running an international organisation you can now make direct comparisons between countries. Do you still have confidence in the Malta tourism product? Is it still an attractive destination? Where is it heading?

A.P.: I am a firm believer in the potential of this country.

Few countries in the world match Malta for what it possesses in such a small package. As a country and as individuals we still have to strive to ensure that our infrastructure and our environment match the gems that we possess. Ultimately, we need every single person from our community to appreciate that together we can make Malta number one in terms of family values, education and industrial productivity. We should, and we will achieve this pinnacle of success.

I: What advice would you give to prospective business people who are considering entering the tourism industry by offering products or services to tourists?

A.P.: In whatever you do in life, not necessarily associated with the tourist industry, always go for the best and do everything to the best of your ability as this will produce quality. Never compromise on that.

I: What is your view on the MHRA initiative to set up the Mediterranean Tourism Forum linking and uniting all 29 Mediterranean countries? Would such an initiative make a difference to tourism in the Mediterranean?

This is a good venture and I look forward to taking part.

I: On a personal note.. what’s next for you? Still thinking business… the next project… the next hotel? planning to call it a day and move on to more relaxing days?

A.P.: There are so many projects in the pipeline. Where shall I start...? Time will tell.

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Hotel Phoenicia Malta's Iconic Hotel

Hotel Phoenicia is a tranquil classic hotel from which to enjoy the capital cityâ&#x20AC;&#x2122;s spirited atmosphere and numerous cultural opportunities. Hotel Phoenicia was the first 5-star hotel to open in Malta and has carved out a strong brand over the last 70 years, making it a target for high-profile international ownership. The hotel was previously owned by millionaire hotel mogul, Rocco Forte. The luxury property includes 136 guest rooms including 8 suites, all with astounding sea views of the unique Grand Harbour, and a 7.5 acre garden considered to be one of the finest in the southern Mediterranean.

Standing under the swaying palms on Hotel Phoenicia's front lawn you find yourself gazing at the beautiful Triton Fountain that frames Valletta and the heart of the UNESCO world-heritage capital behind it, just a short walk from landmarks like The Museum of Fine Arts, St. James Cavalier and the fat-lady filled Museum of Archaeology â&#x20AC;&#x201C; but miles away from an ordinary hotel experience.

Host to an imposing Art Deco influence, the glamorous hotel was recently refurbished and prides itself on being an avid supporter of Malta's art and culture, being a sponsor of Teatru Manoel, the Baroque Festival, the Opera Festival, the Malta Council for Culture and the Arts,

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the Malta Arts Festival, the Malta Jazz Festival, Jazz on the Fringe. In fact, local and international musicians play the Fringe each summer by the hotel's Rotunda, while many artists have been invited to hang their works next to the permanent exhibition of the world's single, largest collection of Caruana Dingli's, which grace the hotel lobby. This is a place that exudes good taste from every pore.

Hotel Phoenicia is managed by industry veteran Charles Azzopardi and his hand-picked team. The Phoenicia has Valletta's only kitchen garden, which primarily supplies flagship eatery Pegasus, where the award-winning brigade of chefs have reinvented local and Mediterranean cuisine.

Hotel Phoenicia is often the base for visitors who explore Valletta and the rest of the island and then return for a bit of pampering, relaxing by the pool, enjoying the panoramic views over the Mediterranean, and is home to many special interest groups and cultural tours. The hotel's food and wine celebrates Malta's many cultural influences. The Club Bar features hand-crafted cocktails paired with bar bites, over 40 different malt whiskies, bourbons and blends; Saturday night jazz is an institution.

For further information visit www.phoeniciamalta.com Hotel Phoenicia Malta, The Mall, Floriana FRN 1478, Malta

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Spain Russia 3% 3% Austria/ Swiss 3%

Libya 2%

Ireland 2%

Source of Images: National Statistics Office and Deloitte MHRA Survey

Benelux 5% Scandinavia 7%

United Kingdom 29%

France 7% Germany 9% Italy 15%

Other 15%

2013 at a glance

Source: National Statistics Office

words: David Bonett

2013 was a record year for tourism in Malta with tourist arrivals and guest nights at an all-time high. Accordingly, the results of the MHRA survey by Deloitte confirmed a record year for the Hotel sector with occupancy levels at the highest point over the last five-year period, increased room rates and notable improvements in Gross Operating profits in all hotel sectors.

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I

n 2013, Malta’s tourism sector continued to register record growth, building on the trends reported in the previous years.

Notwithstanding a relatively flat economic performance in Malta’s key tourist markets, Malta continued to attract tourists primarily from Western Europe. There was no change in the top five source markets with the UK occupying the top spot, followed by Italy, Germany, France and Scandinavia. The only market which registered a decline was Spain, a market which has been in decline for the third year running.

The Russian market registered the most significant growth in relative terms.

Approximately 36% of the growth was derived from smaller non-traditional markets within the “Other” category.

Tourist arrivals in private accommodation continued to grow at a faster pace than arrivals in collective accommodation, raising concerns about a potential increase in unregulated supply. This phenomenon may also be attributable to an increase in local expatriates and the resulting increase in visits from families and friends.

Another trend worth noting is the gradual decrease in the average length of stay which is the result of a change in the tourist profile with an increase in business-related travel and greater flight availability.

The decrease in average length of stay was however more than countered by the increase in arrivals and the overall number of guest nights continued to register significant growth.

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Tourist arrivals 1,600,000 1,582,153

1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000

2005

2006

2007

2008

Arrivals

2009

2010

2011

2012

2013

Euro Area GDP (OECD)

Average Length of Stay 10 9.3

9

8.9

9.3

8.7

8.4

8.3

8.2

8

8.1

7.9

7 6

2005

2006

2007

2008

2009

2010

2011

2012

2013

Days

Guest Nights 12,890,000

13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

Guest nights

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Occupancy 80.0% 75.0% 70.0% 65.0%

74.0%

66.7%

64.6%

70.8% 62.7%

73.9% 68.2%

75.0% 69.6%

64.0%

64.9%

2010

2011

63.7%

58.5%

55.0% 2008

2009 5 Star

Source: Deloitte MHRA Survey

Occupancy (%)

68.1% 58.8%

60.0%

50.0%

74.7%

73.6% 70.3%

4star

3 Star

2012

2013

Hotel occupancy increased in all sectors as a direct consequence of the increase in tourist guest nights.

The 3-star sector reported the most significant increase in occupancy (+6.9%) after having reported a decline in 2012. The 4 and 5 star sectors continued to report moderate growth in occupancy (+2%)

Average Achieved Room Rates (AARR) After a sharp decrease in rates in response to the global economic crisis in 2009, rates have been gradually recovering over the last 4 years. Whilst significant increases have been recorded, particularly in 2013, the rates for the 5 and 4 star sectors are still below the inflation-adjusted 2008 rates.

Gross Operating Profit per Available Room (GOPAR) The 2013 Deloitte MHRA report highlighted a relatively stable cost base in all of the hotel sectors with increases in occupancy and room rate flowing directly to the bottom line. Accordingly, each of the 3 sectors reported significant increases in GOPAR. In 2013, the 3 and 5 star sectors surpassed 2008 inflation adjusted GOPAR levels whereas the 4-star sector is still marginally below this benchmark.

David Bonett is a Principal (Financial Advisory Services) at Deloitte.

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The Mediterranean: Lessons from the Past?

David Abulafia

The Mediterranean is a meeting-point like no other. Here, three continents almost touch one another, at the Straits of Gibraltar and in the Bosphorus, while the Suez Canal separates Africa from Asia. Within the maritime space, which is long and narrow, a profusion of islands, ranging in size from Sicily to barely inhabited rocks, act as bridges between the continents and as way-stations for those seeking to traverse the sea from west to east or from east to west. This is a place of enormous variety, so much so that even the climate can change dramatically within a short distance, as anyone visiting western Sicily who has ascended from Trapani to Erice in summer will be all too well aware.

R

ather tiny by comparison with the three major oceans, the Mediterranean has been a hothouse in which many cultures have been created and have flourished, while its connection to the Atlantic and the Indian Ocean have brought influences from outside â&#x20AC;&#x201C; eastern spices, sent through the markets

86

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of Alexandria, and northern navies, notably the British, who implanted an empire that has left a permanent mark on the culture of Malta and Cyprus, and indeed other lands.

The greatest cultural influence in the last two millennia has come from the east, as the three Abrahamic faiths of Judaism, Christianity and Islam have competed to win souls all around the Mediterranean, and as the

last two have established powerful empires within the Mediterranean.

The Mediterranean has seen the movement of peoples on a massive scale, whether in the great crisis that brought the Bronze Age to an end, or during the last centuries of the Roman Empire, or most recently in the wave of migrants seeking to reach the European Union from Africa and Asia, often in unseaworthy boats.

The Mediterranean is never still.

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www.thevillamalta.com 39, Main Street, Balluta Bay, St. Julians E-mail: info@thevillamalta.com Tel: 2311 2273

Such a rich history has left a striking physical legacy. Whereas the great civilisations of China and Japan built largely in wood and saw many ancient monuments decay, the impressive remains of stone structures within the Mediterranean, taking us all the way back to the temples in Malta, from the fourth millennium BC, have in many cases endured so well that the problem is not simply how to promote public interest in them – which is often strong already – but how to maintain them as they are exposed to trampling feet, industrial pollution and the inevitable decay that afflicts those newly exposed monuments that have lain undisturbed under the earth for so many centuries – one thinks of the fading and peeling paintings in the Etruscan tombs, of the ever more rapid deterioration of Pompeii and Herculaneum, and of the still unresolved question of how to save Venice.

Alongside the damage to monuments, we cannot ignore the damage to the environment that has resulted from uncontrolled building along the shores of many Mediterranean countries, often in order to service the tourist trade, and the severe effects of over-fishing and pollution on the underwater population of the Mediterranean – fish that have been shrinking in size and failing to

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The enduring properties of the impressive remains of stone structures within the Mediterranean pose the problem of how to maintain them. reproduce on the scale that will keep fishermen in business.

How can one address these issues and at the same time protect the economic interests of the countries around the Mediterranean? The enormous explosion in Mediterranean tourism that followed the creation of the package holiday in Britain, Germany and Scandinavia in the second half of the twentieth century has brought much-needed prosperity to many corners of the Mediterranean.

Standards of living have risen astronomically.

Tourism has become the raison d’être of what would otherwise have been sleepy towns on the coasts of Spain,

Italy, Croatia, Greece and Cyprus, places such as Sorrento, Paphos and Marbella – even if one has to face the fact that a multitude of tourists come for sun, sea and sand, and there are certainly a good many who do not care that greatly which country they are in. But some countries have not participated in the massive expansion of tourism, for one reason or another: among North African states, Tunisia has been most successful, and the political revolution there has not seriously stunted the country’s tourist industry as far as I am aware. Egypt, on the other hand, has paid a high price, and early hopes that Lepocis Magna in Libya would once again be readily accessible have been dashed as that country descends into chaos.

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come to look at historic monuments but often to learn languages, to experience different food and wine, and to find a couple of weeksâ&#x20AC;&#x2122; peace amid the turbulence of modern city life back home.

How important it is, then, that we should promote a Mediterranean that endeavours to recover some of the characteristics of past times, and uses its monuments and other tourist assets to demonstrate that the Mediterranean is a meeting-place, not a frontier.

Cyprus is a divided yet beautiful island.

From a historical perspective, one can say that the Mediterranean has lost one of its most appealing characteristics over the last century.

In earlier times, the co-existence of peoples, languages and religions, though often uneasy, resulted in the creation of communities where people of many different customs and habits mixed together and learnt from one another; just in the nineteenth century, one thinks of Austrian Trieste, Ottoman Salonika, AngloEgyptian Alexandria. First the fall of the Ottoman Empire and later on decolonisation brought self-respect to peoples all around the Mediterranean basin; but it was often accompanied by strident expressions of nationalism, and further divisiveness was fostered by the interference of the Soviet Union and other powers. Alexandria is no longer a city full of Greeks, Italians, Jews, Turks and Maltese; Trieste, less dramatically, has lost its urbane mixture of Austrians, Slavs and Italians, of the Catholic, Orthodox, Jewish or another faith.

Cyprus is a divided island.

The colourful port cities of the old Mediterranean have turned into monochrome places, though it has to be admitted that each Summer they become thoroughly polyglot,

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but only because of the vast flood of temporary visitors. We observe today a fractured Mediterranean, whose northern and southern shores are no longer in dialogue. The northern shores look further northwards still, to the European Union of which most countries are members, or aspire to become members, while those that are members find themselves embroiled in the crisis of the Euro.

The southern shores are still resolving political and religious conflicts that have the potential to do great damage to their economies, not to mention their social cohesion.

One could almost say that the Mediterranean has ceased to exist as a place of interwoven peoples and cultures, though something of this may eventually revive as cities such as Barcelona and Marseilles become home to large numbers of new immigrants; but we should not expect instant results.

If we are looking for a meeting of cultures within the Mediterranean, then the best place to look is among the swarms of visitors who make Athens, Rome and Barcelona into polyglot cities that act as hosts to Europeans, Americans, Asians and many others, people who have not just

Prof. David Abulafia LittD FBA is an influential English historian with a particular interest in Italy, Spain and the rest of the Mediterranean during the Middle Ages and Renaissance. He has been Professor of Mediterranean History at the University of Cambridge since 2000 and a Fellow of Gonville and Caius College, Cambridge since 1974. He was Chairman of the History Faculty at Cambridge University, 2003-5, and was elected a member of the governing Council of Cambridge University in 2008.

He is a Fellow of the British Academy and a member of the Academia Europaea.

In 2013 he was awarded one of three inaugural British Academy Medals for his work on Mediterranean history.

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Cutting Diamonds: Investing in Human Capital Barbaros Kon

In recent years, tourism has become one of the fastest growing industries in the world. Based on the data provided by the United Nations World Tourism Organisation (UNWTO), world tourism grew 3-5% on average in 2013.

Combined with the wonderful climate and natural beauties, the Mediterranean region is perfectly capable of giving the rest of the world a good run for their money. However, the labour market could well be keeping us back; whilst tourism in the Mediterranean sector is set to be a strong rising sector, it often loses the level of quality in the service provided because of a very high turnover of workers amongst other factors.

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quality of education and training in the tourism sector are key components in developing a good tourism product.

If the quality of these assets are low, it becomes impossible to create a trademark in the tourism sector. Marketing activities are built on the services and it is the human capital that actually determines the quality of the product, and hence the prices. It is thus vital to invest sufficiently into human capital.

What

should be done to enhance

The employees’ happiness in the workplace can be fostered through a pleasant work environment. And by work environment, we mean relationships rather than just the physical environment.

Managers are crucial to fostering employees’ happiness and job satisfaction: the Y Generation does not want to be managed; its constituents want their skills to be managed. They want feedback to help them expand their horizons and develop their skills rather than having their limitations pointed out; they want a fair management system which gives importance to their personal development. They want to climb career ladders very fast. They want their potential to be considered important; they want to be recognised when they show initiative and perform well.

the tourism sector?

In Turkey, 51.2% of those employed in the tourism sector only work for one year or less in the industry while 32.9% spend between 2 and 4 years in the tourism industry. The basic reason for this is that they do not see what they are doing as a profession.

There are several elements in creating the perception of “profession” and it starts from school education and the characteristics of the Y Generation, to professionalism of processes of companies in selection and placement, importance of orientation and onthe-job training, career management systems, and social activities that enhance employee satisfaction.

While many hotels wish to recruit those very employees whom they trained during the previous season, these employees may hop to the neighbouring hotel just because of a small increment in salary. The typically low rate of loyalty and commitment from low-tier employees can indeed affect the guests’ level of satisfaction. It is an accepted fact that if the employee is happy, then he or she will be committed and effective and this has an overall result on the performance of the organisation.

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Rewarding Performance In order to increase commitment of employees, a performance-based culture should be established within the company. Definitions and roles of employees should be clear; strategies and targets should be shared; employees should be cared for and nurtured; their expectations should be clarified sometimes a particular benefit or even recognition of performance may be more highly valued than monetary remuneration. Employees’ satisfaction should always be monitored and evaluated via questionnaires; a career plan should be discussed and shared with them to create a roadmap for them to progress throughout the organisation.

And lastly, they should be provided with training to help them develop their skills, enabling their progress through the organisation, focusing on these skills.

power and love in a balanced way, then you get the optimum performance from that employee. In other words, you convert jewels into jewellery. It should always be remembered that the performance of the institution can be attained only by the skilled and committed employees who create value for their institutions.

To elicit this potential, Human Resources selection and placement processes must be challenging and an Assessment Centre should be established if necessary. For example, candidates (employees) may be requested to work at different stations in the course of the day. Creating a level of difficulty in the task and competition in recruitment creates a level of interest in the job. Of course you may find it difficult to create challenging systems in a sector where it is difficult to find high quality employees.

Additionally, roles and job definitions must be clearly communicated through a strong orientation program; career maps should be drawn up with employees at the very beginning of recruitment to ensure they know how, when, and where they can be promoted; the continuity of their personal development must also be maintained by assigning them with mentors who can support them throughout their career with regular coaching.

The 3Ps should be used to achieve the highest performance from employees and increase their commitment.

If you positively provoke the employee and elicit his/her real potential and use

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School education is a significant prerequisite as a precursor to the employment years: during school life, teachers must explore the potential of their students and promote the tourism sector, thus creating skills necessary to the tourism industry and creating a demand for such employment in the formative years, transforming such potential employees from jewels to jewellery with the help of formal education.

The young employees in this sector want to balance their work and social lives. However, in the labour-intensive tourism sector, factors such as excessive overtime hours, not being able to allocate time to the social life, and low wages due to competition hinder long-term employability of the young employees.

Therefore, to increase length of service of these young employees, and despite low wages, the following will be essential:, establishing a fair and clear premium system with specific criteria, which is performance-based and designed in a way to maximise client satisfaction; delivering premiums; enabling regular annual vacations; and giving small and challenging targets with determined deadlines.

The Older Worker It is very hard for people over 50 to gain new employment - young employees are always preferred. But if studies were conducted to find out how the experiences of older employees could be utilised effectively and productively, I believe that these more experienced employees will have a higher level of commitment to the employer and can indeed make a higher level of contribution to the client’s ultimate benefit.

Intercultural Movements Gaining inter-cultural working competency also becomes important to providing development in this sector.

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Each employee in this sector should have the ability to work with people from different cultures. Enterprises should be able to transfer workers or interns from different countries and the respective legal processes should be facilitated. In this way, labour could be imported and exported more easily, thus providing a cross-fertilisation of ideas and intercultural learnings.

Countries should be able to transfer students or workers from other countries when they face the absence of human resources. However, those enterprises that wish to do so often meet bureaucratic obstacles.

Conclusion It is those organisations which have implemented well-constructed human resources systems that are focused on competency, ability, and happiness of the employee which will be successful.

This will moreover happen under leadership that believes in harnessing potential and which balances power. When an approach which is symbiotic to the dreams of employees is demonstrated in the tourism sector, commitment and effectiveness of employees will increase since they will find their work more meaningful. This will increase performance and thus client satisfaction.

The level of happiness of the employee will have a direct result upon the performance of the organisation.

Dr Barbaros Kon is the founder and Chairman of Humanica, a leading HR consulting firm in Turkey with offices in Istanbul, Izmir, Denizli, Antalya and Toronto. Dr Kon also lectures at various Universities across Turkey and is considered to be a leading expert in strategic management and human resource development.

Dr Kon may be contacted at his Istanbul office on tel. no.: +90 (216) 386 39 79 or Gsm: + 90 (533) 495 46 29, or at Bağdat Cad. Noter Sk. Gülşen Apt. No: 13/1 B Blok D:7 şaşkınbakkal-Kadıköy / İSTANBUL.

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The Great Indian Traveller Prathish Nair

We live in what experts call the ‘Asian Century’. Asia is now regaining the leading position on the global stage that it last held before the Industrial Revolution. With a population of 1.2 billion, India ranks as the world’s 10th-largest economy and third largest in purchasing power parity terms.

Although India has faced obstacles to sustained growth, it is effectively navigating these hurdles and is on track to become a future leading economy, with forecasted annual GDP growth of 5% between 2011 and 2060. Today, India is surpassing Japan in terms of GDP at purchasing power parity and is expected to surpass Europe in 20 years time. By 2060, India will have experienced more than a seven-fold increase in its income per capita. For comparison purposes, by 2060 income per capita is expected to reach half that of the current US level.

Over the next two decades many millions of Indians will enter the ranks of the global middle-class, joining what we term the ‘consuming class’, with enormous implications for the global economy, including travel.

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I

ndia

has emerged as the world’s fastest-growing outbound market, and in absolute numbers it is second only to China. The number of Indians travelling overseas is set to rise from around 15 million today to 50 million by 2020, according to Tourism Australia. According to an Amadeus-Frost & Sullivan tourism industry report, Indians travelling to Asia-Pacific alone spent $13.3 billion in 2011. This figure is set to propel to $91 billion by 2030, making Indians the second-biggest spenders, after China, in the world on overseas travel. An average Indian traveller spent about US$1,700 dollar per trip, which amounts to a US$15 billion Indian outbound market.

The UNWTO predicts that India will account for 50 million outbound tourists by 2020; the ‘Kuoni Travel Report India’ predicts that total outbound spending will cross the US$ 28 billion mark in 2020.

With over 28 million passport holders in the country who are potential travellers, the source market for outbound travel is wide and complex because of its size and variety.

According to the primary research among the travel trade, the main source regions are west and north (including central India) together accounting for about 55% of all outbound travel, followed by south (35%) and east (10%).

The world is already taking note.

Tourism Australia hopes to get 300,000 Indian tourists by 2020.

South Africa Tourism Board too says India has become one of the key tourism-generating nations for their country. Indian tourist arrivals to Thailand crossed the one million mark for the first time in 2012.

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Significant attraction for Europe Europe commands an estimated market share of about 20% of all Indian outbound departures. The Indian travel trade estimates that the market for Europe is growing at a steady pace of 5-7% per annum and that the pace of growth for Europe can be accelerated with greater focus

by European tourism boards on the Indian market.

40% of travel to Europe is estimated to be for holiday purposes. Five European destinations account for a majority of the share of travel from India to Europe – United Kingdom, France, Italy, Germany and Switzerland.

According to the travel trade, international leisure travellers belong to the 25- 65 years age group, a larger proportion being males (65%) than females (35%). They are well educated and belong to the upper socio-economic strata of society. The majority are married (75%) and have children living in the household.

Two-thirds of leisure travellers tend to holiday abroad with family.

In the short-term, a large proportion of potential visitors to Europe are likely to be first-time visitors, although the majority will have travelled abroad at least once. Families and couples are likely to be the key customer segments travelling to Europe on holiday. Some travel with groups of friends, and affinity group travellers can also be anticipated.

The key travel motivation of potential first-time visitors to Europe is a culture/sightseeing holiday. The key travel motivations among repeat visitors are culture/sightseeing holiday, touring/driving holiday, snow/ski holiday and holiday in the mountains. Most of the potential visitors are likely to undertake a multi-country vacation in Europe.

The EU point of view “We have seen a demand for domestic and intra-regional travel, though the growth has slowed,” said a spokesperson for the European Commission’s tourism unit. “We have recognized the changing economic global structure; we see opportunity in newer markets because of their buoyant economy. We will be competing for our share of it.”

Taking note of the booming Indian outbound tourism, many countries — including Ireland, Spain, South Korea, Turkey, UK, Greece, and Poland — have all opened tourist offices in India. India largely being English speaking, International communication platforms have worked well to send the right message.

Swiss Bliss The Swiss might not have needed to make any effort to market the pristine splendour of their snowclad Alps. Visiting Switzerland was anyway a dream come true for any Indian. Nevertheless, the Switzerland Tourism office was set up in 1996, and now, its marketing initiatives are paying rich dividends.

the Switzerland Tourism office was set up in 1996, and now, its marketing initiatives are paying rich dividends

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(this visual interpretation is for illustrative purposes only) Source: World Tourism Organisation (UNWTO) As an example, the number of overnight stays by Indian visitors in Switzerland has shot up from 179,647 in 2000 to240,000 in 2004. An average annual growth of 10 per cent is expected in the coming years.

Just as significantly, Indians are ranked among the highest spenders and since 2004, they have emerged as the second largest users of the Swiss Travel System after the Americans. In addition, frequent Indian travellers now account for 50 per cent of the Indian tourist traffic.

The Indian film industry, popularly known as Bollywood, has also played a powerful role in reinforcing the Swiss magic on the Indian psyche.

Superhit films like ‘Dilwale Dulhania le Jayenge’ and ‘Hero No.1’, as well as popular song-and dance numbers in innumerable other films, have been shot all over Switzerland, particularly in the picturesque Bernese highlands. A restaurant on the Jungfrau is even called ‘Bollywood’, and exclusively serves Indian Vegetarian buffets.

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“The Bollywood connection has made a really big difference in selling Switzerland,” says Ashwin Merchant, deputy director, Swiss Business Hub. “It has proved an ideal promotional platform not just for attracting tourists from India, but its footprint has had a multiplier effect on the entire moneyed Indian diaspora, stretching from the Far East and Middle East to UK and USA.” Inspired by the Swiss example, and realising its value as an effective publicity opportunity, other countries like Britain, Spain, Australia, New Zealand, Canada, Italy, Singapore and Malaysia have begun offering special incentives to Indian film-makers.

The particular love for Italy Italy has been an important market for Indian outbound tourism, with a significant increase in tourist arrivals. In the last 5 years, according to the statistics from the Italian National Institute for Statistics (ISTAT), Italy has had a tremendous growth of 94% in the number of Indian travellers.

Italy largely attracts leisure travellers from India. However, it is gradually drawing significant MICE religious and education tourists. To quote, Dr. Marco Bruschini, Director General from the Italian State Tourist Board, “We aim to grow this number by strengthening our relations with our travel and trade partners.”

Tourism Ireland Tourism Ireland is looking at attracting MICE, FIT, families, and the Bollywood segment. Apart from Dublin, the tourism board is looking at promoting places like Belfast, Cork and Galway. Tourism Ireland is looking at attracting about 18,00019,000 Indian tourists this year and 25,000-30,000 tourists next year.

Emirates Airlines has started daily flights from Dubai to Dublin. Targeting the Indian traveller visiting UK, Ireland government decided to waive off visa requirements for those Indian travellers who have a valid short term UK visa.

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Initiatives to attract the Great Indian Traveller Much can be done to bring the Indian tourist to the Mediterranean. The Mediterranean Tourism Forum has thus invited to its panel key Indian Stakeholders. Dr. Chiranjeevi Konidala and Mr. Ram Charan Konidala.

Dr. Chiranjeevi Konidala

Mr. Ram Charan Konidala

Dr. Konidala is a Member of Parliament and a former Union Minister of Tourism, Government of India. He is a popular actor from the film industry in India and is known for his dancing skills. In a film career spanning thirty five years, he won four state Nandi Awards and nine Filmfare Awards South. In 2006, Chiranjeevi was honoured with the Padma Bhushan, India's third highest civilian award, for his contributions to Indian cinema, and was presented with an honorary doctorate from Andhra University. In 2013, CNNIBN LIVE named him as one of "the men who changed the face of the Indian Cinema".

Mr. Ram Charan is an Indian film actor and entrepreneur, known for his works primarily in Telugu & Hindi cinema. He won two Andhra Pradesh state Nandi Awards, two Filmfare Awards South, two CineMAA Awards, and one Santosham Best Actor Award.

Ram Charan’s journey as an actor started in 2007 and within a span of 7 years he acted in 8 Films, and with his films he rewrote the History of South Indian Box Office by breaking all possible records in Collections by grossing around USD 20 Million on average per film.

Dr. Chiranjeevi is also a producer, politician and a member of the Indian National Congress. He was the Minister of State with responsibility for the Ministry of Tourism,Government of India 2014.

Ram Charan serves on the board of directors of MAA TV. He is an entrepreneur, and an equestrian. In December 2013, Ram Charan was ranked #69 in 2013 India's Forbes list.

Top influencers for Indian Travellers

In terms of travel destination selection, the top factors that influence destination selection for Indians based on research done by Tourism Australia in 2012 are: • Safe and secure destination • Family friendly destination • Romantic destination • Ease of travel – visa & connecting flights • A destination that offers value for money • World-class beauty and natural environments • Strong local culture • Great shopping / world class brand names • Friendly and open citizens, local hospitality • Access to vegetarian food / Indian cuisine.

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Tourism Ireland is adopting a three pronged strategy for the Indian market wherein they are looking at working closely with travel and tours operators, undertaking a lot of marketing activities through publicity as well as through their website www. discoverireland.com.

Apart from this, the Bollywood film ‘Ek tha Tiger’ which was shot in Dublin will also aid in promoting Ireland as a tourist destination in the Indian market.

Tourism Spain Ever since the release of the popular Bollywood movie ‘Zindagi Na Milegi Dobara’ which was mostly shot in Spain, there has been a sharp increase in arrivals from India into Spain. Last year around 60,000 Indian tourists visited Spain which is 50 per cent more in comparison to the previous year.

Encouraged by this most significant increase, the Spanish tourism authorities have decided to increase efforts to boost arrivals from India.

Spain Tourism plans to spend around €100 million on its promotional and marketing activities to popularise the destination among Indians.

To quote Mr. Miguel Nieto-Sandoval, India Director, Spain Tourism, “We expect this (India) market (in terms of tourists to Spain) to grow by well over 25 per cent per year for the next decade.”

Spain is expecting at least 10 per cent increase in arrivals from India during this summer season. With United States and Europe in recession, Spain is desperately looking to increase its foothold in emerging markets.

Imperatives for Malta’s tourism to target Indians Though currently Malta figures in the top 15 destinations which Indians search for online, there are a number of measures to take. Firstly it’s important to deliver a consistent and compelling Malta brand to help carve a niche. Secondly, unique experiential advocates for Brand Malta must be gained. And thirdly, an eco system to constantly influence and attract the Indian traveller must be created.

We are seeing the Amazonification of the world; this means that service suppliers will have to customise their

offerings more and more so as to cater for the needs of specific traveller segments.

The Mediterranean Diwali Deepawali or Diwali is certainly the biggest and the brightest of all Indian festivals. Diwali literally means a "Row of Lights." It is a time filled with light and love; a time when Indians all over the world rejoice. Diwali signifies the triumph of good over evil, of righteousness over treachery, of truth over falsehood, and of light over darkness.

Diwali in 2015 falls in the second last week of November. It is thus suggested that a ‘Mediterranean Diwali’ is organised and celebrated so as to pay tribute to the markets' needs.

Further key success factors include the easing of travel for Indians from their main points of departure; being namely India, the United Kingdom, the U.S. and UAE. It is also vital that vegetarian food is widely available throughout the Mediterranean. Paying tribute to these wants and needs of the Indian traveller will be pivotal in gaining Indian market share into the Mediterranean.

Prathish Nair is Trancend Consulting's Chief Business Architect. Trancend is a leading strategic business advisory firm in India. Prathish is a passionate brand advocate who believes in creating path-breaking brands that delivers business growth. He likes to break the boundaries, spot the opportunities and build brand experiences and create successful businesses.

Prathish has over eighteen years of experience of brand building and consumer work in many sectors and categories including FMCG, Banking, Corporate, Retail and many more that include Canara Bank, Ceat Tyres, Uninor, India First Insurance, Trident Hotels, Bengaluru International Airport, Nirmal Clear Oil, FifthGear, Minera Steel , Caterpillar Worldwide, Martin Enginnering, Bosch Siemens, Unilever, Coconad and many more. Before Trancend , Prathish was the Head of Business Development at the Brand Union for India & Sub Continent and prior to that as Head Marketing at a Shopper Marketing & Retail Consulting Firm.

He graduated from School of Management, Pondicherry with a Masters degree in Marketing Management and has also attended the “Building innovative brand’s” executive program by Stanford University Graduate School of Business. During his college days he was part of the Times of India Response Team to develop institutional sales of the daily.

When not travelling on business, Prathish loves to experiment mixing different cuisines, or discussing the merits of an innovative idea that can improve the quality of life & business with his friends.

Peak Periods: Outbound Leisure Travel

by Indian Markets: a) April 15..June 30 School Holidays b) Mid- Late November (Diwali, Hindu Festival, 5 Days) c) December-January (Christmas and New Year Holidays)

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and co-funded by the EU’s LIFE programme and the French public agency ADEME. The EWWR aims to promote and encourage entities to raise awareness about sustainable resource and waste management. MHRA is supporting this initiative through awareness-raising actions including during the high profile Mediterranean Tourism Forum 2014.

According to the EU Commission it is estimated that over 100 million tonnes of food are wasted annually in Europe. Food waste comes in many forms, from throwing away leftover food or fruit and vegetables that are only slightly bruised, to purchasing more food than actually needed, to confusing ‘best before’ labelling with expiry dates on product packaging.

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Hologram Technology and Tourism Nick Vilardell

We live in an interactive world where individuals demand access to information in real time. To thrive in todayâ&#x20AC;&#x2122;s competitive economic environment, businesses relying on income from the tourism industry must keep pace with the newest trends in marketing and entertainment to survive.

T

ourism

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these days relies heavily on the Internet to lure travellers to various destinations, regardless of whether they are visiting for business, leisure, health, education, to visit relatives or friends or any other reason. Consumers can now book airline flights, secure accommodation, reserve rental cars and purchase tickets for attractions, sporting events and live performances ahead of time and from the comfort of home or even their mobile device.

These online tools are extremely helpful to attract travellers and help them get to where they want to go, but some of the most exciting advancements in technology focus on enhancing the travel experience by disseminating useful information to visitors after they arrive at their destination.

The mobile phone has already become the travel guide of choice for

many people. Fewer tourists are relying on maps, books, pamphlets and other printed material for information about what to do, where to go and how to get there. They no longer have to carry and organise individual guidebooks and maps for multiple locations because they have access to all the information they need at their fingertips through a mobile electronic device.

Augmented reality offers innovative ways for local businesses to engage travellers with interactive content.

This technology works by superimposing computer-generated sensory input onto the real-world environment. Unlike virtual reality, which creates an artificial environment, augmented reality uses physical objects in the real world as the backdrop for computer-generated annotations.

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Hologram technology superimposes onto the environment 3-D illusions which seamlessly blend in with reality.

Hologram technology superimposes onto the environment 3-D illusions which seamlessly blend in with reality.

The most commonly applied augmentations are currently auditory and visual overlays, but augmented reality actually has the potential to add elements to the physical environment perceptible by all senses.

Hologram technology superimposes onto the environment 3-D illusions which seamlessly blend in with reality. A hologram shows the relationship between all components of an image more vividly than 2-D images. This vastly improves the viewer’s experience by showing free-floating video in 360 degrees.

Everyone should experience the wonder of holographic images. This technology can create amazing viewing experiences. It offers a wide variety of applications across many business sectors, especially the tourism industry, which is dedicated to enhancing every aspect of the tourist experience.

Multiple holographic images can be used as virtual tour guides to the city.

By utilising this cutting-edge technology, historic figures or fictional characters come to life to promote attractions, restaurants and other local businesses.

Museums may offer holograms featuring famous figures relaying stories,

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narration and commentary about relevant displays and exhibits. Instead of just viewing a spectacular piece of artwork, imagine watching as the artist describes his or her creation and offers insight into its inspiration.

Reality augmented sightseeing goes way beyond just educating visitors about the history and culture of a city. It actually immerses them into the environments of years gone past and offers them the chance to witness significant events that shaped the city or region.

Reconstructed images of long-gone historic landmarks superimposed on their original sites give visitors the feeling they have travelled back in time. They can watch the evolution of a city’s skyline over time and see how it looked at different times throughout history.

Merchants can use hologram technology to create virtual displays and product demonstrations designed to entice visitors to purchase their products and services.

Technology is available that allows people to view holograms on mobile phones and notebooks. Travellers use their mobile electronic devices to access an app, which guides them to various trigger points. Upon arrival at the trigger point, the app recognises the location and triggers a holographic performance on the screen. Users can take pictures of themselves with the holographic images and share them on Facebook, Twitter and other social media sites.

Your Signs in the Mediterranean Sky! The creative minds at 360BrandVision are also excited about the possibilities offered by Skignz, a system that places signs and 3-D objects in the en-

vironment so app users can view them through the camera on a mobile device. Skignz is a geolocated augmented reality system that creates content from thin air.

An innovative (UK based) digital company we have partnered with is providing a new way for people to navigate around the Mediterranean using virtual signs in the sky viewed through a smart phone or tablet. The concept creates a whole new way for people to interact and experience the Mediterranean. skignz is the brainchild of UK entrepreneurs Si Brown and Gary Baker. It allows people to use their mobile devices to find their way around and access digital content using real time ‘virtual’ signs in the sky.

As well as helping visitors familiarise themselves with the country/resort/city/ town they are visiting, the technology also enables users to locate places of interest, find out more about the area around them and connect with other users; pinpointing their locality. All this is done by holding your mobile device aloft and accessing the digital “skignz” which have been published by

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the place you are visiting or by other previous visitors. The original idea for skignz was to develop a way for friends to keep track of each other at large events, such as festivals, sporting arenas and also whilst on holiday. By registering with skignz - for FREE - users can hold up their mobile device and pin point exactly where their friends are. It also allows you to add your social media profile so users are able to see which of their Facebook friends, for example, are also in the same location.

As the platform is always evolving, skignz has developed live events signage/navigation, corporate hospitality support, digital displays, even 1:1 scale 3-D models that are being used by brands to promote their products or by tourist destinations to show what an ancient ruin might have looked like when it was in its prime! skignz has been described by its clients and users as “a unique concept”, “It’s like the Internet in the sky” and they have even said “How did I ever cope on holiday, when I lost my friends? Now I have skignz I feel safer and I’m not wasting time looking for them.”

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The Mediterranean is an ideal location for people to use skignz as it’s a transient place and constantly changing with holiday makers and visitors coming to the region for many different reasons. Tourist information units could use skignz to highlight interesting locations, places of outstanding natural beauty and even enhance the visitor attractions, making the destination more interactive and engaging. Tour operators could use skignz to help the holiday makers locate their transport upon arrival at airports: travellers would just walk through the terminal, open the app and be able to locate their selected mode of transport and walk straight to it. The resorts could use it to connect places with treasure hunts for children, events focused on a particular demographic or age group, or simply for use around the large hotel resorts with multiple pools, restaurants and other facilities spread over large sites.

As it’s free to download, skignz users can access the content straight away.

If they want to place their own content all they need to do is register for an account. Parents could use it to track their kids, or groups of friends could stay connected in a visual way by connecting all the group’s devices.

Si Brown adds: “We passionately believe in skignz and are delighted that people are downloading the App and placing their own content. As the word spreads about skignz, we are seeing more and more people using it across the world.

One of the biggest advantages of skignz is that you can set the language to your preference and the app even allows dual languages to help visitors help find their way around as well as provide real time offers to the skignz audience, such as ‘a coffee shop offering a free pastry with a latte’ or ‘a restaurant offering deals on children’s meals’.

To find out more about skignz and download the app visit www.skignz.com.

skignz could be a key tool to help places like Malta, Ibiza, Majorca, Kos, Rhodes etc. almost become digital islands, with skignz spread across all the tourist areas. This not only enhances the visitor experience, but also allows the smaller local businesses to engage in the same way the large operators do.

One important factor to keep in mind is that skignz is a virtual product and so has no harm on the environment, does not obstruct beautiful places and is only used when and where the person requires the information, making skignz the most helpful yet unobtrusive marketing channel in the world. skignz is hyper local and brings truly focused real time content to its user.

We are on an incredible journey, which already has skignz being used globally, so the hotel resorts, tour providers, tourist information bureaus, even whole countries who engage now, will be able to steal a march on their competitors. After all why try to play catch -up with technology when you can be out in the forefront of technology!”

Nick Vilardell is a co-founder and the SVP of Business Development at 360BV. Under his leadership 360BV has become a leading proprietary holographic imaging products and creative services company.

Nick has been instrumental in securing clients such as Google, NFL, BMW, Lexus, Bacardi, Six Flags Dubai, Sprint, Siemens Medical, and Planet Hollywood.

Contact info: nick@360brandvision.com

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The New Reality

Augmented Reality Experience in the Tourism Industry Daniel Surya and Jeffrey Budiman

This is the new digital era: the time when consumer technologies have advanced tremendously with the likes of fast processing tablets, high resolution cameras in a smartphone, free video-conferencing modules, smart watches, and many more to come.

A higher processing capability, combined with higher internet penetration in emerging countries as well as wider bandwidth provided to accommodate the daily internet usage has truly enabled new interactive media solutions to be implemented nowadays.

How, then, is this affecting the tourism industry?

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n recent years, conventional media such as TV, posters, newspaper ads and billboards have been seen as those ‘compulsory’ means of communicating a destination. But did you know that the popularity of some applications like Trip Advisor is spreading virally like wildfire? This is probably so because the application is so simple and 'personalisable'. It can indeed be customised to provide what you really want to know for a particular destination, and this includes other travellers' reviews.

In truth, new technology solutions have benefited the tourism industry, not only for a particular region, but have become a global phenomenon. In the end, we have to realise that people have been becoming more social than ever; more adaptable to new technologies. And therefore, liking it or not, we can no longer ignore this.

So how do we start? Simply having a website or developing an application does not guarantee that the destination will get noticed right away. This is where creativity comes in, and uniqueness will surely make your destination stand out amongst the crowd. One of the technologies that offers flexibility and interactivity to consider is Augmented Reality.

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You may have heard the term Virtual Reality (VR) before. To put it simply, it allows users to transport themselves into the digital / virtual space.

For example, if talking about Virtual Reality Glasses,the user gets virtually embedded within the VR video game; simulating his or her presence within the game. The most popular VR glasses nowadays is the Oculus Rift which has been bought by Facebook in early 2014. Augmented Reality (AR) on the other hand is the opposite of Virtual Reality. In simple terms, AR allows us to extract digital items, or content, or even avatars, and place them into our real life environment in real time – giving the impression that the object or person actually exists right in front of us. This is surely adding new possibilities of how we can bring the experience unique to a particular destination to your living room instantly.

The Flexibility of AR Technology Before delving into the endless possibilities for using AR, one ought to first step back and understand that this technology must not be seen only as a standalone item, or even as a gimmick.

AR as a platform offers flexibilities to enhance existing programs, or even on-going brand activations. You can use this technology for various reasons, from solely giving information, to the collection of more detailed data from travellers, to providing fun memories through unique experiences, or even to direct users to your website and social media channels. Many possible scenarios can be created, and several modules can indeed be developed in conjunction with the existing Augmented Reality application. You can use this for an event, roadshow, on stage presentation, or one could even give the application away as a free download to mobile devices. New Augmented Reality modules are devel-

oped every day, and even companies such as ours have a dedicated Research and Development team to push the boundaries of this technology and to come up with new patented solutions.

Do Not Sacrifice your Assets Does it sound too good to be true? Do we need to sacrifice or current assets in order to support an AR application?

The good news is that you don’t need to reprint all the merchandise, posters, billboards, name cards etc. just to be able to enhance them with their AR module. The latest development of Augmented Reality technology does not require a special code such as barcodes or QR codes in order to activate the contents; the current computer vision technology has allowed the AR application to recognise the design and shapes. This is indeed another advantage for many brand owners in that they can enhance the brand experiences without sacrificing the ones they already have.

Simply having a website or developing an application does not guarantee that the destination will get noticed right away. This is where creativity comes in

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experience, they can proceed to collect their photos from the website or social media channels, thus increasing traffic and databases as well as memorable fun.

Some Examples of AR in use In how the technology can be applied to tourism, the opportunities are endless and are limited solely by one's needs, objectives and creativity. Some examples are as follows: â&#x20AC;˘

Navigation Guide The technology can be combined with a mobile city guide employing an Augmented Reality navigation system that guides users to reach their selected destination in the particular city. Based on the current GPS location, s/he can see from the live camera the direction and distance that is wanted to be reached.

â&#x20AC;˘

Collecting Photos People can simulate the wearing of a traditional costume, or dance together with a local famous dancer in a roadshow or experiential centre, or wherever. Following this

Data mining is also important in that it allows you to understand the new demographics of your targeted audiences, each one of which caries a unique set of behaviours and expectations. In order for any brands or destinations to keep their relevance, we do need to intimately understand their wants and needs and leverage our tools, information and thus knowledge so as to implement the next impactful strategy. â&#x20AC;˘

Enhancing Existing Attractions We can even use this technology to further enhance the existing attractions - imagine the re-enactment of historical moments - perhaps La Vallette leading his Knights into battle in front of your customers'

very eyes! Edutainment at museums and at Conference Centres is one such incredible provision.

Conclusion The above are simply some of the possibilities of how we can utilise this technology, enriching our real life environment with destination-specific digital contents. Depending on the set objectives, the AR platform can be fully customised to suit the role, thus making it a more complete and memorable experience for the audiences on-site. It can be utilised too in attracting the tourist to a particular destination. Augmented Reality offers us a new Reality that we can and should exploit - a new tool for us to seriously consider using.

So, are you ready for the next, new (digital) reality?

Daniel Surya is the Group Chief Executive Officer, WIR Group.

Daniel is an architect of branding industry and recognised authority on Indonesian branding. He has been quoted in numerous business and professional publications and has frequently appeared on radio and television programs.

Jejjrey Budiman is Chief Technology Officer, AR&Co. Jeffrey received a Master degree from the University of Central England in Birmingham, UK where he developed his ability to utilise new innovative technologies, strategy and creative design to communicate impactful brand identities.

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Tourism? We have a clear picture.

At Deloitte, we know you need more than a functional solution to your business problems, you need real industry insight - a clear picture.

Making informed decisions is key to the effective management of all business organisations. With close to 20 years of experience in analysing performance, costs, trends, and general market information of the tourism industry, the Deloitte Malta firm is well established to provide advisory services and business solutions to operators in this sector.

To learn more please contact Raphael Aloisio at raloisio@deloitte.com.mt or David Bonett at dbonett@deloitte.com.mt

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