www.travel: setting the groundwork for the future of T-commerce
Foreign business executives are slowly becoming aware of the island's potential as a business hub. ANDREAS F. FORSTHUBER, managing director of www.travel, spoke to David Kelleher about the company's
innovative plans and why Malta is attractive to foreign businesses
Five years ago, few people would have ever dreamt of using their mobile phone to receive messages, let alone internet and video clips or video on demand. The phrase m-commerce was something that only visionaries could have come up with.
Today, with the convergence of all forms of media and the Internet, the result is that m-commerce is no longer a vision but a reality. It may still be in its infancy but there is certainly no holding back.
Success in today's technological world does not solely depend on creating a niche market and becoming the market leader. It requires becoming a sort of visionary, being able to read into the future and more often than not believe that concept products or services are a possibility.
It is becoming very clear that all forms of media are converging into one. This is already evident by the number of TV stations that are buying up publishing houses and newspapers.
"The market is now shifting towards a new form of commerce, t-commerce, whereby television will be used to provide information yet at the same time allow the user to interact with the content," Andreas F. Forsthuber, managing director of www.travel, said.
www.travel is a free-to-air TV channel which anyone in Europe, the Mediterranean region and the Middle East can receive either via satellite or cable reception.
Mr Forsthuber is a firm believer in the vast possibilities that TV has to offer, even more so when you have an audience of over 100 million viewers.
"Our channel provides viewers with up-to-date travel information on numerous destinations around the world. If someone is interested in a tour, he can then make a booking through our website at www.wwwtravel.net," Mr Forsthuber told The Malta Business Weekly. Yet, this is but the first stage of an ambitious project that he began working on a couple of years ago.
"With the convergence of all forms of media, the TV is now moving towards the Internet and vice-versa. We must arrive at a point where both media simply become one and viewers become 'view-users'. In other words, we are looking at a new form of business - t-commerce," he added.
T-commerce is still in the development phase, however Mr Forsthuber expects the technology to be available within the next 18 months.
"The technology will offer a high level of interactivity via the television screen. For example, if you are watching one of our programmes and you want to know more about a particular destination, you can get that information via your television. You will be able to book a holiday as well.
"The only hardware required would be a set-top box and a small keyboard. Otherwise, the possibilities are endless," Mr Forsthuber explained.
His company expects market saturation within two to three years and although not infinite, the market potential is huge.
The company has already invested over Lm1m, with capital coming from 75, mainly Swedish, investors.
"The second stage of our operations will see the investment of another Lm2m. We have proved that we are capable as a company to provide high quality travel features and that there is added potential for cable providers to transmit our services as well," Mr Forsthuber said.
The company is now aiming to have Europe-wide coverage and to enter other markets, thus increasing its market boundaries.
"www.travel is already received through cable networks in Russia, the Middle East, Romania, Pakistan, Estonia, and now also in one of Germany's Federal States. Next month, the channel will also be available in Israel," Mr Forsthuber said.
The company is also hoping to break into the US market and Asia. At present, www.travel is broadcast in three languages - English, German and Russian but will add Polish, Italian, Arabic, French and Spanish later on. It will also be providing subtitles in the Netherlands, Sweden and Norway.
The question that inevitably always surfaces is: why come to Malta in the first place?
"The usual question that can be easily answered. Well, basically I was already living in Malta but most importantly, the country offers big incentives for businesses to set up companies here," Mr Forsthuber said.
"The MDC gives international investors a 10-year tax holiday and that is a very attractive offer. Another good reason is that employer taxes are very low compared to those in other European countries. When you have lower employer taxes, your payroll expenses are heavily reduced yet you are still paying good wages," he added.
Mr Forsthuber also believes that most of the potential lies in the people. The island has a high level of education and judging by the number of radio and TV stations and production houses on the island, the skilled staff are readily available. All the content on www.travel is produced in-house, except for the footage which is received from tourism boards.
"All the post-production work and software development for our internet site is done here. We employ 40 people at present although this figure will nearly double when the project is in full swing," he said.
Although the presence of companies like www.travel helps to promote the island as a country with a lot of potential, the number of similar investors is very low.
Mr Forsthuber is of the firm belief that the problem lies with the huge lack of knowledge about Malta. Foreign investors are not aware of Malta's potential.
"A lot of people have heard the name Malta but not much more. Many don't even know where the island is on the map.
"They don't realise the enormous potential the country has to offer. The idea that Malta is only a holiday destination has to be changed," he said.
Mr Forsthuber said people coming over to Malta on business matters are surprised and do not expect Malta to be so organised.
"Malta has lost out in the past. I believe that today the island has an excellent chance to make headway in the new electronic markets. However, I think Malta needs a change in politics - away from heavy industry and to invest in alternatives," he said.
The island, he said, could become a hub for high technology operations, with a high level of employment and a relatively high tax income. He is particularly impressed by the local workforce's attitude towards work.
"People are very willing to work. It is not true that Maltese workers are lazy; the majority are not and become 'attached' to their job. There is a high level of loyalty because they feel part of the company is theirs," Mr Forsthuber said.
He feels that not enough is being done to promote the island as a business centre and that funds are not being properly channelled to the right markets.
"Through our channel we are doing our best to promote the island. In fact, one per cent of our broadcasts are related to Malta. We are doing our part but much more has to be done. I think that certain markets are receiving funds that should be used to promote the island in Germany or Austria, for example," he added.
The past four months have seen numerous takeovers and mergers between top companies. Are strategic partners a must today?
"This is the decade of mergers. We are also in the process of discussing business with strategic partners.
"No one can survive without an alliance in today's market. Malta will also have to change its 'local/foreigners' mentality. The country cannot have different regulations for both," Mr Forsthuber said.
"Walls have to be brought down. This form of 'two-class business society' must cease to exist. Otherwise it will not be easy in a global market," he added.
Profile:
Andreas W. Forsthuber
Born in Vienna in 1961, he studied law at university before switching to photography and journalism. After completing his studies, he joined one of the main Austrian weeklies specialising in investigative journalism.
He then moved to the other side of the fence, taking up the post of Press Secretary to the vice-mayor of Austria.
Still attracted to the world of media, he turned to journalism again, this time focusing on advertising, as creative director.
Eight years ago he started working on TV production, specialising in tourism. This inspired him to develop the www.travel project.
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