Travel Reference
In-Depth Information
The mid-1990s proved to be turbulent years
for tourism. The quest for quality tourism accom-
modation led to tensions between the Maltese
population and entrepreneurs (Boissevain and
Theuma, 1998; Ioannides and Holcomb, 2001).
This was compounded by Malta's continuing
dependence on tour operator business, where-
by in the late 1990s, 85% of Malta's tourism
business was generated by large multinationals.
In an attempt to encourage operators to sell
Malta, Maltese tourism authorities had provided
UK tour operators with advertising assistance
and a preferential rate of exchange for 15 years
(1985-2000). Although this support sustained
visitor numbers it was counter-productive in
terms of market and product since Malta's
image still remained predominantly that of a
'3Ss' Mediterranean destination (N. Theuma,
2002, unpublished PhD thesis).
In addition, Malta was facing competition
from other newly established destinations within
the Mediterranean region such as Tunisia, lead-
ing to further price competition among Maltese
hoteliers. In an attempt to retain economic via-
bility, local entrepreneurs undercut one another
to the extent that five-star hotels sold three-star
priced holidays, in turn jeopardizing service qual-
ity, leading to many 'consumer complaints about
the facility and service standards' (Cleverdon,
2000, p. 85).
In summary, tourism during the 1990s in
Malta was characterized by an over-reliance on
price factors, large hotel developments and a
tourism service that lacked quality. The appli-
cation of Malta to join the EU had forced the
Maltese government to cease its preferential
treatment under EU competition law.
The MTA took over the responsibilities of
the NTOM, the Hotel and Catering Establish-
ments Board (HCEB) and also became involved
in human resources. The new tourism authority
was empowered to address the key challenges
facing the industry, namely:
visibility, competitiveness and attractiveness
oftheMaltabrandinsourcemarkets;
●
product
upgrading,
presentation
and
●
interpretation;
development of core service skills to enhance
visitor experience;
●
the establishment of standards and regula-
tion of the industry; and
●
the provision of relevant information to
enable critical decision-making by the MTA
itself, by government and by the industry
(MTA, 2000a, p. 15).
●
Strategies adopted by MTA
The approach adopted by the MTA addressed
the main stakeholders in Malta (local popula-
tion, tourism providers) and abroad (tour oper-
ators and prospective visitors). For many years,
Malta's competitive advantage as a tourism
destination was price (Brigulio and Vella 1995).
Despite the fact that price remains an important
element in determining the choice of holiday
destinations, the MTA's main objective is to
move away from this position through new
marketing activities. Malta had to become a
destination of choice (MTA, 2000a, p. 40) by
emphasizing non-price factors of quality, service
and product.
In analysing the work conducted by the
MTA since the inception, one could argue that its
strategic focus was based on three main areas:
product development, re-imaging of the Maltese
Islands, and, a redefined marketing campaign.
These three factors are discussed below.
Malta Tourism Authority: a New
Approach
A more strategic approach to tourism man-
agement had to be found. A government
paper (Ministry of Tourism, 1997) led to the
production of two studies - on economic
impact (Vella and Mangion, 1999) and carry-
ing capacity assessment (Ministry of Tourism
2001). These three documents resulted in the
formation of the Malta Tourism Authority (MTA)
in September 1999.
The Malta product
As part of the author's survey (N. Theuma,
2002, unpublished PhD thesis), informants from
the public and private tourism sectors opined
that the Malta product was 'very fragmented'
since Maltese tourism authorities sell Malta as a
