As news of a potential closure of EU borders to UK citizens for non-essential travel hit headlines, many expressed concern for the local tourism industry, already hard hit by the COVID-19 pandemic.
In the increasingly likely case that no deal is reached between the EU and the UK, the UK will be bound by additional restrictions affecting travel in and out of the EU – restrictions that bar all but essential travel.
However, Chamber of SMEs’ Deputy President Philip Fenech sought to allay fears that the situation may continue in the long term.
He said, “Obviously, tourism is already what it is, with airlines in retrenchment and demand low because of our main markets having contamination of the virus, so tourism in general is obviously down a lot. Problems with the UK will only add to the difficulties already there.”
“But,” he continued, “I’m sure that some kind of solution will come out of this sometime later on next year.”
He believes this is only a short term reaction, probably coming from the fact that both sides are keeping to their bargaining positioning.
Regardless of the reason or the exact duration, the closure of borders to non-essential travel by Britons would affect Malta significantly. However, Mr Fenech cautions against Malta going it alone in negotiations with the UK.
“The impact, not just on Malta, but on the entire EU, is obvious. There is a lot at stake from both sides, so I believe this is only a temporary solution.”
Mr Fenech prefers a collective negotiation, especially at this stage before there is a definite outcome.
“I believe that we need to look at it holistically for the time being, and then adapt depending on the direction we’re going. It makes sense to wait until negotiations are concluded before we even think of striking deals independently – otherwise you would be weakening the negotiating position of the EU. We should all be pulling the same rope,” he says.
Mr Fenech stresses that this is however only his immediate reaction – things may change down the line.
Asked whether members of the Chamber of SMEs are working to diversify their offerings to appeal to other tourist markets, Mr Fenech starts by reasserting the importance of the UK market due to the long cultural ties between the countries, stressing that this market should not be in any way excluded.
“But,” he continues, “obviously, every person in business that is involved in travel looks at the market and looks to broaden their horizons, in the sense that Malta is an island economy, and we have seen in the last years that our success has been thanks to a marketing mix of different nationalities.”
He points out that every time a new link is opened, tourism numbers go up.
“There is no mainland tourism here, tourists come by air or sea, so diversification has always been ongoing as we attempt to broaden the nationalities coming here.”
He notes that every time a new flight path is introduced, even to different airports in countries already served, tourism increased.
“That’s how we increased our figures to €2.7 million tourists in 2019,” he says. “It’s all about linkages.”
Mr Fenech says that diversification in tourism markets has been a long term process over the last 15 years or so, with each year bringing new links to destinations and more tourists.
Main Image:Chamber of SMEs Deputy President Philip Fenech