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Island Hotels Group exploring
options to expand overseas
by Ivan Brincat,
David Kelleher
Although no decision has, as yet, been taken, Island Hotels
Group is actively exploring the possibility of expanding overseas,
Group managing director, Winston Zahra Snr told The Malta Business
Weekly.
Replying to questions after the Group announced that it had
taken over one of Malta’s oldest and unique hotel properties,
Golden Sands Hotel in Ghajn Tuffieha, Mr Zahra said the group
was studying all options.
“Our strategy includes expanding our operations overseas.
We have been working on this for some time now, and although
we have a number of options open, we have not as yet taken a
decision. We feel that there are opportunities abroad both for
owning and managing properties. We are currently building up
our resources and preparing the infrastructure of our company
to be in a position to move forward with our programme of overseas
expansion,” Mr Zahra said.
Giving a breakdown of the hotel’s operations for the past
14 years, Mr Zahra said Island Hotels Group started operations
with the 200-bed Bugibba Holiday Complex.
“The demand we had from Tour Operators could not be met
and an extension was built to bring the Complex to accommodate
up to 1,000 guests. The formula used for the success of the
Complex was to offer excellent accommodation, good food and
value for money. It worked. In 1992 we bought the Salina Bay
Hotel and after a complete refurbishing programme, we opened
the hotel as the Coastline Hotel, a hotel which was to be one
of the best four-star properties in Malta,” Mr Zahra said.
It was however between 1995 and 1997 that the group developed
their flagship, the Radisson BayPoint Hotel. “In the meantime
we have also established Island Caterers, a household name within
its field. Island Hotels Group is also involved in TGIF and
Italiannis as well as the Dragonara Casino,” he added.
The company has grown at an accelerated rate over the years,
and one of the Group’s main plans is to bring their bed
stock in Malta up to 3,000 beds.
“We are always looking for opportunities and if the right
proposal comes up, we will certainly go for it,” he said.
Asked why the Group decided to buy the Golden Sands Hotel, apart
from its need to increase bed stock, Mr Zahra said the hotel
“is a property, which is unique mainly because of its position
overlook-
ing one of the most picturesque
beaches in Malta. We know that this property has tremendous
potential both with tour operating business as well as with
conference and incentive business. Basically the Golden Sands
will be closed down as of the 1 November 2001 and it will be
completely refurbished to bring it up to Island Hotels standards,”
he said.
At present they are working on a marketing plan for the property,
which will reopen in spring 2003.
“We are also looking at the possibility of having the hotel
branded with an international name, but this will be on a franchise
basis. The Golden Sands will be operated and managed by Island
Hotels Group itself,” he added.
Mr Zahra said the hotel has 300 rooms with 600 beds, an ideal
number for this type of property, therefore making it a feasible
proposition. “No development as such will take place. Of
course there is need for some structural alterations in order
to make the property more attractive and more user friendly.
It will be upgraded to a top end four-star hotel, to be positioned
as Malta’s unique upper end beach hotel,” he said.
“The refurbishment programme is scheduled over a period
of 15 months and the hotel will open for business in early spring
of the year 2003. Apart from the usual facilities, we are planning
to add other extra facilities, which will help us no mean way
to make the hotel more attractive to prospective holiday makers,”
Mr Zahra said.
Asked to comment on the state of the tourism industry in Malta,
Mr Zahra said it was a known fact that the Tourism Industry
is one of the mainstays of the Maltese economy, especially because
of the multiplier effect.
“It is also very important because the great majority of
the investment in the industry is Maltese investment. It is
for these two main reasons that the industry must continue to
strive and move forward.
“One must not forget that as time goes by more and more
countries are realising the importance of this industry with
the result that the competition will become greater. On the
positive side more and more people are taking holidays so the
market will also grow,” he explained.
“I believe that Malta has a lot to offer especially in
the winter and shoulder months. In line with the MTA strategic
plans, we need to continue to develop our unique selling points.
It is important that the strategic plan is monitored and followed
to ensure that the targets set are achieved.
“Having said that it is very important to continue to improve
our product. A lot has been done
with the infrastructure and embellishment, but we need to do
a lot more and in a faster fashion,” he added.
However, “we also need to ensure that the MTA has the necessary
funds for the promotion of the Island as a tourist destination.
Funds allocated to the industry must be looked at as an investment,
rather than an expense,” he said.
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