With the tourism sector being a major contributor to Malta's GDP and impacting several businesses and workers, serious concerns have been raised about when the industry can be re-started, while safeguarding public health.

Speaking with The Malta Business Observer, Tourism Minister Julia Farrugia Portelli sheds light on the current scenario and upcoming strategies: 

There are divergent views on when the first foreign tourists are likely to be returning to Malta. What are the latest forecasts by the Government?

There is a common sense of expectation that the reinstatement of normal, day-to-day business and leisure activities will take place in a staggered manner following the introduction of safeguarding measures aimed at reducing the risk of other coronavirus outbreaks.

It is, thus, logical to work on the assumption of a stepped approach towards re-opening the tourism industry as the different operators adjust to new operational regimes, source market populations economies emerge from restrictions and return to economic growth and international measures at curbing the return of future pandemics are set in motion.

We cannot open our ports tomorrow morning but I believe that as a country we need to revive internal tourism.

Malta was praised for our best practice on how we tackled COVID-19. Positioning ourselves as having the best practice even in tourism can give us a cutting edge on other countries. If we have Malta and other countries with a clean bill of health, we can work on bilateral agreements to start opening up slowly. This will take time, but, yes, it is on our agenda.

Before reaching this stage, we have to kickstart internal tourism and I am focusing all my efforts to reach this stage as a country. It is imperative.

The Ministry for Tourism and the Malta Tourism Authority worked tirelessly to support the local industry. We are working with the health authorities on the formulation of protocols for the reopening of different tourism service providers such as accommodation and catering establishments, places of entertainment and visitor attractions so operators will have clear advance notice of new requirements well ahead of reopening.

How many visitors does Malta expect to lose due to COVID-19 restrictions?

It depends on when international tourism flows will reopen and the pace at which they will reopen, subject to a rapidly evolving international situation. There is no doubt, however, that 2020 will feature a substantial downturn over 2019 results. At this stage, it is considered premature to make a statement on actual losses given the uncertainties the entire world, and tourism, are going through.

How much will the losses be in financial terms?

Again, it is not easy to quantify estimated financial losses by the sector at the moment except that they are expected to be substantial. The Government is seeking to minimise the impact of such losses through its various fiscal and monetary initiatives aimed at helping tourism businesses to withstand the difficulties they are facing.

Will the Government be adopting a new strategy to attract tourists post-pandemic?

Absolutely. In response to the turmoil caused by COVID-19 to the tourism industry, the identification of crisis-resistant source markets and segments is crucial in the formulation of Malta’s recuperating tourism strategy.

The MTA is already working with its partners in the fields of airline connectivity, tour operation, accommodation and destination management to identify those markets and segments that will give Malta highest initial recovery response, on the basis of which we will start regaining on the losses registered to date.

The indications are that the first travellers post COVID-19 are expected to be healthy, independent, adventurous and active people in the 21 to 35 years age bracket followed by those in the 36 to 55 age group coming mainly from a medium to higher socio-economic background and employed in areas of industry less affected by the pandemic

The tourists will typically travel in couples or in small family groups or friends that know each other very well, will prefer short haul destinations close to home, from within Europe, in Malta’s case, with direct flight connections to the holiday destination to avoid unnecessary layovers in airports and connecting flights and will prefer to travel to destinations perceived to have handled the pandemic very well and that offer the highest standards in hygiene and service. There will also be a strong motivation towards outdoor activity, sports and al fresco dining.

The MTA’s marketing strategy is being recalibrated to first target these segments when overseas travel starts again. The aim will be to balance the number of tourists needed by our industry to achieve profitable economies of scale with the quality and spending power of the tourists we target.

The industry niches the MTA will primarily be focusing on include city breaks, short breaks and luxury holidays with themes like fine dining, diving, outdoor activity, faith, sports, film, wine, history, romantic, LGBT+ and pure leisure, to name a few. There will naturally be others, like family holidays and English language learning, which the MTA shall tap into as the situation continues to improve.

More and more of the MTA’s marketing budget will be invested in online media with much less going to the traditional advertising channels of print and television. Online media campaigns today have the widest reach, allow close monitoring of performance and also instant corrective action where needed.

Campaigns can also be specifically targeted to specific audiences by age, location, level of income, past holiday buying patterns and browsing interests.

The MTA’s advertising and PR activity will consistently be conveying the message of Malta and Gozo offering a rewarding enriching holiday experience while giving best value for both money as well as precious holiday time.

To keep a holiday to Malta topmost in aspiring travellers’ minds, we have launched an international awareness campaign in 14 different languages themed Dream Malta Now, Visit Later.

Malta’s tourism recovery strategy also features a number of other supply-side initiatives being undertaken during this subdued period of tourism activity to ensure a stronger and better equipped destination for when tourism returns to growing ways. These initiatives include an extensive programme offering continuing professional development to a wide range of employees from all sectors of the tourism industry. We shall be launching this ambitious programme in a few weeks’ time.

Also, no fewer than 16 large and smaller sites and attractions are receiving varying levels of MTA support to undergo extensive restoration works.

What is the direct and indirect contributions the tourism industry makes to the GDP?

Tourism continues to be a major pillar of Maltese economic activity not only because of its direct injection of overseas monetary funds but also because of the higher-than-average multiplier effects of tourism expenditure.

Although there is no official measure, estimates made by the MTA on the basis of different studies carried out from time to time indicate that tourism to Malta has a direct GDP impact of about 12 per cent, going up to 25 per cent if its full economic impact magnified by its multipliers is taken into account.

This interview first appeared in the April edition of The Malta Business Observer