A clear marketing strategy for the Authority
by Mr Winston V. Zahra, chairman, marketing and promotion directorate, MTA
1999 can be called a good year. About 1.224 million tourist arrivals are expected to visit Malta, a 3.5 per cent increase over last year.
Nevertheless, on closer examination, it is clear that we have continued to lose ground in our major market, the United Kingdom - down to 34 per cent of tourist flow - but managed to more than counter balance this loss with increases from other sources particularly Germany, Holland, Ireland, Austria and Sweden.
I must mention the valid contribution given by The National Tourism Organisation of Malta. Times change though, and the tourism set-up in Malta had to change in order to be in a position to face the challenges of the future.
The Malta Tourism Authority has now been established the result is: the direct involvement of the private sector and that the various aspects of tourism have all been brought under one umbrella.
The local scenario has changed. The Malta product now offers more high quality hotels and expecting some more shortly.
We are expected to reach 11.5 million guest-nights, despite a slowly declining length of stay. This is still 400,000 nights below the peak, registered in 1994.
Closer examination of this data indicates that the four- and five-star sector continue to increase their share of total tourist nights with the three-star sector losing ground. This implies that a radical restructuring of our hotel industry is occurring and perhaps has reached a peak this year.
The international scenario is also changing. Global growth prospects continue to improve and GDP growth rate in the European Union have either been revised upwards or left stable at three per cent. The positive global scenario is underpinned by the recovery of the Asian economies. All this is good news for us. The year 2000 promises buoyant tourist outflows from our major sources.
However we continue to receive reports of the many product improvements, not only in hotels, that our competition is making particularly in them provision of golf courses, and yacht marinas adding value to their offer. What is more of concern are substantiated reports of our poor performance in the environment area.
These reports originate from the Customer Satisfaction Surveys made by major operators, particularly the German operators, which explains why we have failed to make any noticeable headway with some of them.
Maybe the most important aspect here is the globalisation, which is happening, and happening fast, within the tour operating field. Tour operators, from privately owned companies, particularly in the UK, are becoming plc's with the result that loyalty by tour operators to particular destinations will be replaced by what profits can be achieved by selling a particular destination.
Competition will be harder and operators will become more ruthless.
Primarily there are three main initiatives towards putting Malta on the global tourism map.
1) A local campaign with the objective of making the tourism industry owned by everybody.
2) A change in our method of judging our performance purely on just tourist arrival figures. Tourist arrivals are fine but more important are beds nights and yield per arrival.
3) The strengthening of our Intelligence Unit. This unit will be there to give us the information required in order to be able to take decisions rationally.
There are two other important areas that need to be examined:
1) The need for the MTA to have the required funds to operate effectively.
2) The second aspect is the fact that Malta in recent years has been selling mainly on price. We have to change this by reviewing our positioning as and when necessary.
What is the MTA's strategy?
1. Positioning - branding of the Maltese islands.
The Maltese islands have to be positioned. We have to establish how to sell the islands. The positioning will be more than one aspect and could vary from country to country, but it has to be established, and it is being established.
2. Strengthening core markets geographically and through niche markets.
3. Strengthening and improving the niche markets.
4. Improvement in added value. This cannot be achieved unless we address the environment problem. We have to go back to the basics, cleanliness, cleaning of rubbish and so on. Things that can be done without the need of money.
5. Targeting new markets.
This is the strategy. To achieve results the following are necessary:
1. Proper funding
2. Publicity and promotional material
3. Information from the Intelligence Unit
4. Close collaboration with the local operators
5. Close collaboration with the airlines.
Although the MTA and this directorate have only been going for two months a lot of work has been going on to formalise these strategies, to improve in the internal organisation and also to get the ball rolling as quickly as possible.
Marketing plans for 1999/2000 were completed and public relations companies were contracted. We are now ready to start work on the marketing plans for year 2000/2001 and the following two years.
This industry is vital for our economy, we have a lot of responsibility to make a success of this industry. A success of this industry is a success for Malta and its economy. With intelligent planning, aggressive marketing and innovation, there is no reason why we should not succeed.
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