The tourism sector may not be the same again, Valletta Cruise Port Chief Executive Officer and Global Ports Holding Chief Operations Officer, Stephen Xuereb, has said, going on to announce that the entity is “already gearing up for a new modus operandi in both the short- and medium- term to rebuild the cruise industry” in the aftermath of this global outbreak.

“The current situation is certainly having a big impact on all players in the tourism sector and, we anticipate that, post-COVID-19, a new reality will dawn upon all operators,” he explained. The situation, however, he underlined, was also “dependent on how quickly the industry’s stakeholders, such as the airline industry, can return to normal operations.”

Honing in on the cruise ship sector, he outlined the damage done by the pandemic. “Last year saw over 900,000 cruise passenger movements at the terminal, and 2020 was set to replicate this success, but things changed during the first quarter. Tourism on a global level has been affected negatively and the industry is at a standstill. Against a backdrop of travel restrictions being introduced, cruise vessels are being laid-up, resulting in an ever-increasing number of cancelled travel plans.” 

Despite this, he expressed faith in the sector’s longevity, stating that “the cruise industry has, along the years, proven to be very resilient. It has weathered many unfortunate events,” he attested. 

He pointed to the ways in which cruise brands were tackling the situation by encouraging their passengers to postpone their trips and estimated that the sector would start making some headway towards the end of this year, with a full recovery likely by 2021.  

With this in mind, and despite the current crisis having had a severe impact to the bottom line for 2020, VCP was moving on with their planned investments, and also ensuring employees were supported. In this regard, he said, “Government’s assistance is proving to be a welcome relief.”

One of the planned projects is the setting up of bespoke canopy structures, a two million Euro investment which sees the terminal’s outdoor space enhanced in such a way so as to also respect “the fabric of the historic Valletta Waterfront buildings.” Commenced in the first week of January, these enhancements have now almost been completed, he said. 

And, this year, VCP is planning on starting works on widening the quays at Pinto 4 and 5 by 15 metres, to be able to accommodate larger ships; parking is also set to increase at the terminal, with the VCP management currently focusing on securing the necessary permits for a carpark.

Apart from these in-house projects, the VCP is supporting a 49.9 million initiative spearheaded by Infrastructure Malta and Transport Malta to develop shore-side electricity, the CEO said. “The first of this two-phased project includes a €37 million investment to provide shore power (also known as cold ironing) on the five main cruise ship quays of the Grand Harbour by the end of 2023,” Mr Xuereb asserted.

These plans are all part of a forward-looking strategy which has helped the VCP diversify its offerings, the CEO underlined. “Valletta Cruise Port has modelled its operations to not be solely dependent on cruise tourism,” he explained, though he also admitted that its restaurants and retail operators have, inevitably, suffered a hit in the downswing as a result of COVID-19.