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MHra / tHE road aHEad / 05

Editorial & ContEnts

07 Message by the

Prime Minister

09 Message by the

Parliamentary secretary

for tourism

11 Message by the hotreC

President

13 spotlight on the Mhra

The first years of the MhRa whentourism was hardly the force it istoday. Yet one man back in 1958had a dream.

19 history in the making

The MhRa history told by theprotagonists themselves – the pastpresidents have their say.

25 thank you Mr President

after two years at the helm of the MhRa, outgoing presidentGeorge Micallef talks about thetribulations, the triumphs and thefew misgivings about MhRa.

29 the man with the golden

smile

The outgoing ceo of the MhRatalks about his career in hospital-ity and why it beats any other job.he believes that the MhRa willgo from strength to strength.

31 a man with a mission

andrew agius Muscat, the manwho will take over from Georgeschembri, has quite a lot on hisplate but loves the challenge andbelieves the MhRa will continueto deliver.

35 re-branding of the Mhra

an attractive new logo for theMhRa is just a small step in thewhole re-branding exercise.

37 the hotel and restaurant

industry: past, present

and future

clyde caruana looks into trendsand anticipates what lies ahead forMalta in tourism.

40 the ministers have

their say

Former tourism ministers and parliamentary secretaries give us their views on their achieve-ments and their relationship with the MhRa.

44 Cleaning up our act

The environment is increasinglybecoming the most important fac-tor influencing the choice of holi-day destinations. local hotels andrestaurants are doing their bit todevelop a sustainable product.

47 MICe attack

Malta is a perfect venue for the Mice (Meetings, incentives, conferences, events) market.

49 tourism and heritage:

do they go together?

Many people feel that tourismspoils a country. actually visitorsto Malta have helped put the spot-light and preserve our heritage.

50 a recipe for dining

a new study being conducted bythe MhRa together with the MTawill ensure that the dining experi-ence in Malta gets even better.

52 a job well done

We ask some employees in thetourist sector to tell us what makestheir job in hospitality so special.

55 a taste of Malta

Taking a bit of Malta back homein the form of wine, olive oil orlace will keep their memory of the islands vivid.

56 to give and to take

We find out the MhRa’s contribu-tion to society and what the peopleoutside think about the association.

58 the eU link

always very active internationally,since Malta’s accession to the euthe international role of theMhRa has grown even more.

executive editor Victor Calleja Layout & Design

Manuel Schembri – MediaMaker Limited, Valletta

Printing Progress Press Limited, Mriehel Publisher

Malta Hotels and Restaurants Association Advertis-

ing Sales Edmund Vassallo – Allied Newspapers

Limited, Valletta

November 2011

THE roadahead

The MalTa hoTels andResTauRanTs associa-Tion (MhRa) has been aleading participant in Malta’stourism since 1958. sincethen, the story of the MhRahas paralleled, and sometimeseven spearhead ed, the growthof tourism in Malta.

Two of the most importantservices that any visitor toMalta needs are accommoda-tion and restaurants. since itsinception, the MhRa’s taskhas been to ensure that hotelsand restaurants thrive, thusbeing better positioned tooffer the visitor – and the localuser of both services – aunique and lasting experience.

hotels and restaurants aretwo of the most vibrant andimportant sectors in Maltaand both have contributed ex-

tensively to the nation’s well-being and development as amodern nation. and no otherindustry is as effective in ad-vertising our country – whenwe, as a nation, present a goodview of our country, then vis-itors are positively impressed,and go back home happier.

Visitors who leave with agood impression return homeand encourage their friendsand family to visit as well. Theeffects of a good impression,or a bad one, are significantlylong-lasting. The fact that athird of our annual tourist ar-rivals are repeat visitors issurely a good indicator of thestate of tourism in Malta.

The MhRa has alwaysbeen an innovator, a catalystfor development and a sourceof information for all playersin the tourism field. Because itis so conscious of its need tokeep updated and relevant, theMhRa council, headed by thepresident, has embarked on anambitious plan to furtherstrengthen itself in the eyes ofMalta and beyond. To this end,the association will be goingthrough a very importantprocess of re-launching itself

and gearing up to meet futuredemands and challenges.

The MhRa has been syn-onymous with success eversince its inception, but like allsuccess stories it needs to keepbuilding on it to reach evenhigher, more momentousheights, and to be ready for allchallenges.

The MhRa represents amajor part of the Maltese en-trepreneurs who have amasseda portfolio of hotels, restau-rants and assets worth morethan €1.5 billion. The future isalways part of the unknownfor Malta, its inhabitants, itsemployees and its tourism in-dustry, but it will find the asso-ciation that represents hotelsand restaurants in Malta wellprepared to confront it withglowing confidence.Following the MHRA’s

AGM on Friday (November25) and just before going toprint, Tony Zahra was elec -ted president of the associa-tion. Hardly a newcomer tothe industry, he brings withhim extensive experience inthe tourism field.

Victor Calleja

The views and opinions expressed in this publication do not

necessarily reflect the official policy or position of the MHRA.

© 2011. All rights reserved. Reproduction in whole, or in part,

without written permission of the publishers, is prohibited.

Nr. 2, Gallina Street, Kappara, San Gwann, SGN 4111, Malta.

Tel: (00356) 2131 8133/4 E-mail: [email protected]

Web: www.mhra.org.mt

Contents

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MHRa / THe Road aHead / 07

Message

As An islAnd stAte at the crossroads of theMediterranean sea, Malta has throughout its historybeen renowned for its hospitality. it is history itself thathas given us the potential for building a tourism industrycapable of generating jobs and economic value added.

it is our unparalleled culture, history, archaeology andheritage that have allowed Malta to build a significanttourism industry. A main economic pillar supporting athird of Malta’s labour force and contributing to a thirdof our GdP, tourism remains a strategic economic sec-tor, a sector that not only has faced pressing challengesin the past months, but one that continues to face themat this current juncture and into the foreseeable future.these challenges, including the global economic crisisand fuel price crisis, took place against a backdrop ofintensified global competition and the emergence ofnew destinations.

However, in facing such challenges, history and pres-ent performance reassure us. We are on the third con-secutive record year of the Maltese tourism industry.tourist arrivals in the first nine months of 2011 in-creased by 6.6% over 2010 whilst nights spent and ex-penditure grew by 3.7% and 8.9% respectively. Over thesame period, cruise liner passengers increased by 15.8%.these positive results reflect key strategic decisions thatwere taken.

We, all stakeholders involved, have embraced changeand improved Malta’s product, marketing and accessi-bility. the investment taken by our entrepreneurs rep-resented by the MHRA has been a key generator ofemployment. My Government recognises your effortsin making the tourism industry the success it is today.However, even with Malta performing better than itsclose competitors, there is no room for complacency.On the contrary there is need for innovation, re-ap-praisal and improvements across the board.

Government is focused on improving our existingproduct. We are investing heavily in our heritage andhistorical sites, not only in preservation and restorationbut also in regeneration. We are also investing in generalinfrastructure and the recently completed €108 million

investment in sewage treatment plants is a testimony toour efforts. Malta is today the only Mediterraneancountry that treats all its sewage before pumping it intothe sea and our water quality has been recommendedby european authorities.

in addition, as stressed in the 2012 budget, we are in-creasing Malta’s accessibility and visibility by penetratingnew markets. We have increased our investment in theMalta tourism Authority. Being a service industry, tou -rism relies heavily on the human resource and we are alsoaddressing the professional skill base of the industry.

Parallel to these initiatives, we need to instil a sense ofinnovation in the tourism industry, with players re-in-venting themselves to cater for changing needs and de-sires. in order to facilitate this, Government has launcheda €10 million investment scheme to assist companies inundertaking projects in the tourism sector.

Government is focused on bringing a general im-provement in various types of tourism-related infra-structure, making Malta more competitive and attractivefor the discerning tourist. this is a national effort andincludes all stakeholders including tourism operatorsand local councils.

the Malta Hotels and Restaurants Association is animportant partner in our efforts. its flexibility and adapt-ability to changing international circumstances make ita dynamic partner, which augurs well for the future ofthe industry. its contributions are needed to continueshaping our strategies, policies and the industry itself.

together, we can continue transforming challengesinto opportunities and making tourism a successful industry.

The Prime Minister the Hon. Dr LawrenceGonzi

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In the last four years, Malta has had threerecord years in the tourism industry. results for the firstnine months of 2011 are also positive with an increaseof 69,667 tourists over the same period last year. thetotal nights spent increased by 336,503 to reach a totalof over 9 million nights while the total expenditure bytourists increased by €81.7 million to reach a total ofover €997 million. the tourism industry is therefore experiencing increases in its three main performance

indicators: in the total number of tourists, total nightsspent and total expenditure by tourists. MIa also an-nounced that passenger movements for october wereat an all-time record.

the positive trends in our tourism industry are not co-incidental but the result of the successful implementationof the national tourism Plan that had been drawn up byGovernment in consultation with, and with the collabo-ration of, the stakeholders in the industry. the strategyfocuses on improved accessibility to Malta, effective marketing and an improved tourism product. however, we cannot afford to rest on our laurels. tourism is a veryvolatile industry in an ever-changing scenario.

to improve the local product, Government has overthe years invested not only in the infrastructure, but alsoin the upgrade and restoration of our historical cities ofValletta, Mdina, Birgu and the Cittadella in Gozo. Wehave invested heavily in enhancing the visitor’s experi-ence in our historical sites, which include Ħaġar Qim,Mnajdra, the hypogeum, Ġgantija, tarxien temples, stPaul’s Catacombs and the roman Villa. We have appliedfor erDf funds to restore st elmo and st angelo andhave embarked on the renzo Piano project at the en-trance to Valletta that will not only give an internationalsignature to our capital city but will allow us to restoreit to its former glory, as will be done with the President’sPalace, as a result of Parliament’s relocation.

the Mta has also embarked on a number of proj-ects. following the inauguration of the €1.4 million stPaul’s Bay promenade, the Maltese public and touristscan enjoy a three kilometre coastal walk that connectsQawra, Buġibba and st Paul’s Bay. Work has also com-menced on the €14.5 million aquarium project inQawra and on the €2.4 million Pembroke Gardens,while the walking/cycling trail and the restoration ofthe Madliena tower are under way.

such schemes encourage innovation and sustain ourcountry’s competitiveness. Mta’s more focused and in-novative way of marketing has seen it receive an awardfor the best tourism authority in the world for market-ing initiative, by the airlines at the routes Conferenceheld in Berlin recently. results speak for themselves butwe start each year from zero.

the private sector is pivotal towards improving ouroverall product and with this in mind Government haslaunched a €10 million sustainable tourism fundwhich co-finances up to 50 per cent of expenditure, aninterest subsidy scheme on loans taken to maintain orexpand hotels, restaurants and other projects related tothe tourism industry, and with the ‘soft’ side of the prod-uct in mind Government launched the aDVanCe pro-gramme that will see the training of 3,000 persons,through an eu co-funded scheme.

the national tourism Policy published in 2007 willexpire at the end of 2011. Government, in collaborationwith the industry, is in the process of updating the pol-icy so as to ensure a sustainable future for this impor-tant sector of the economy.

the tourism strategy that is being implemented withthe collaboration of stakeholders including the Maltahotels and restaurants association is allowing ourcountry to sustain its competitiveness and lay solidfoundations for the challenges that the industry mayencounter in the future.


Message

The ParliamentarySecretary forTourism the Hon. Dr Mario de Marco

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15676 RHR 270x210 indd 1 23/11/2011 13:19

mHRa / THE ROad aHEad / 11

mEssagE

Over the last 20 years, thehospitality industry in europe haswitnessed deep changes in the polit-ical and regulatory environment thatdetermines the way business is prac-tised. One of these profound evolu-tions is linked to the development ofthe competences of the europeanUnion and to its successful enlarge-ments. europe has now become themain political actor that defines thelegal environment in which hotelsand restaurants can operate acrosseurope. as around 80 per cent of national regulations affecting thehospitality sector actually reflect de-cisions taken at eU level, it is of theutmost importance that the hospital-ity industry is well represented anddefended in the eU institutions.

this is the role of hOtreC (ho-tels, restaurants and Cafés in eu-rope), which brings together 43national associations representingthe interest of the industry in 26different european countries.

hOtreC acts as the voice of theeuropean hospitality industry eachtime the interests of the industryare at stake, and expresses the posi-tion of its member associations to

the eU institutions, in order to en-sure that the interests of hospitalitybusinesses are duly taken into con-sideration when needed. hOtreChas been lobbying for lower vatrates for hotels and restaurants, forbetter regulation and transparen-cies of copyright fee rights, for ruleson food hygiene that fully take intoaccount the challenges faced bysmall hospitality businesses, and foreuropean policies that really fosterthe competitiveness of hospitalitybusinesses. these are just a few ofthe issues we have been working on.

In all these activities, it is of para-mount importance that each of thenational hospitality associations mo -nitors assiduously the trends and theeffects future legislation will have onthe market – both nationally and in-ternationally – before they are actu-ally adopted and implemented. Inmore than 10 years of membership,hOtreC has always been able torely on the very productive and effi-cient contribution of the Mhra,which has been very forthcoming inits reports and participation in allmajor hOtreC initiatives. thisknowledge base brought by theMhra to hOtreC has helped tocreate a unique opportunity to influ-ence the way laws and regulations arebeing shaped in the eU and in itsmember states.

the Mhra can proudly claim tohave successfully con-tributed to the mainhOtreC activities in recent years, be itabout vat, copyright,standardisation, envi-ronment policies orother matters. For instance, theMhra was the first national associ-ation to organise an environmentseminar in 2002, when the solidwaste management strategy was dis-

cussed for the Maltese islands. In thatrespect, the Mhra was the pioneerin this field and helped to change theway policies about environment andhuman health protection are beingimplemented in europe.

the Mhra is now led by GeorgeMicallef, President, tony Zahra,vice-President and the CeO Georgeschembri, who succeeded in raisingthe profile of the industry in theeyes not only of the Maltese govern-ment, but also of various europeandecision-makers.

together, they made the Mhra atrue pillar of hOtreC! Based onthis success, and as the Mhra iscurrently re-energising itself andstrengthening its vision for the in-dustry, hOtreC is confident that aneven more fruitful cooperation willbecome a reality in the near future.

I have heard that George schem-bri will soon be replaced as CeO byandrew agius Muscat. I would liketo take this opportunity to expressmy sincere gratitude to George forhis proactive and brilliant contribu-tion to hOtreC work. also, I lookforward to soon meeting andrewagius Muscat at hOtreC.

Malta might be the smallest eUnation but this is in itself a uniqueadvantage. Malta is a good soundingground for policies that are pro-posed at european or internationallevel. trends are easily monitored

in Malta and all newinitiatives or meas-ures can be launchedthere on a pilot basis.Malta can thereforeact as a sampling ofthe holiday/gastrono -

mic experience in europe, thanks tothe Mhra’s commitment and de -dication to the issues that mattermost for the hospitality industry ineurope.

A message fromKent NyströmHOTREC President

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The hisTory of Tourism inmalTa, especially since the 1960swhen tourism really started flour-ishing, has been intricately linked tothe mhra. hotels and restaurantshave been the major focus of themhra throughout its long andsometimes turbulent history. andbecause hotels and restaurants formthe backbone of tourism, the asso-ciation has been one of the mostvocal and important bodies to keepmalta’s tourism alive, sustainableand a major contributor to the is-lands’ economic and strategic well-being.

Back in 1958, malta’s tourism washardly organised in any way thatwould be recognisable to a youngiTs student embarking on a careerin hospitality today. although therudimentary fundamentals of hos-pitality were there – a few hotelsand places to eat – the real boomwas yet to hit in the 1960s when anumber of top hotels and hotelchains sowed their seeds in malta’stourism industry.

Jean Cauchi, a man with supremevision, felt that the best way forwardwas to group all hotels and restau-rants under one umbrella, formingan association to lobby the author-ities of the day and to help defineand refine a promising industry.Jean Cauchi went on to be electedthe mhra’s first president, and it ishis same vision that still inspires themhra today – to see malta ad-vance its tourist sector.

from then on, the mhra posi-tively flourished and took on anever more important role in the de-velopment of tourism in malta.

mr Cauchi, who was president ofthe association for 10 years, was anassiduous worker who did a lot ofwork that today is recognised asbeing the base for what the mhrahas developed into. he also becamea member of the Board of Gover-nors of the original mCasT, theprecursor of today’s iTs, and wasinstrumental in launching an insti-tute that still develops and nurturesgood and capable employees for thehospitality trade. mr Cauchi’s pres-idency spanned from 1958 to 1967,with an extra year in 1969.

MhrA / The roAd AheAd / 13

The hisTory

Photo: Phoenicia Hotel, Floriana.

Back in 1958, tourism wasn’t the major

force it is today. yet one man had an

ambitious idea – to unite the hospitality

entities under one umbrella. We go

back in time to celebrate the Mhra’s

major achievements.

Spotlight on

the MhRAthe first years


The hisTory

subsequently, an unbelievable rollcall of stalwarts of the hotel industryheaded the mhra, among themsome who have since died: anthonymiceli farrugia, Joe Zarb mizzi andVictor mercieca. all contributedtheir incredible part to the historyof tourism in malta. it is thanks toall these and other personalities thattourism is the economic pillar it istoday, directly contributing about aquarter of the country’s GDP.

Besides top hoteliers, one of thefirst and very successful mhrasecretary Generals was Dr edgarmizzi, later attorney General. Drmizzi added a legal framework tothe lobbying strength of the mhra,a legacy which it still carries to thisday. it was all new territory.

mr Cauchi, his council and Drmizzi formulated, on an ad hocbasis, all procedures to cope withcircumstances and whatever the au-thorities flung at them which wouldaffect the operation of hotels andrestaurants. These decisions andstructures were salutary and helpedlaunch the mhra’s lasting contri-bution to malta, its tourism and itseconomy.

after Dr mizzi resigned from hispost because of new responsibilities,Dr enrico scicluna took over for avery short time. he asked Judge(then Dr) Joe Galea Debono, to takeover. The latter agreed and for 26

years kept assisting and paving theway for the mhra to become themodern association it is today. JudgeGalea Debono was subsequently ap-pointed Chairman of nTom. Dur-ing his tenure of the post the mhra’sheadquarters were Judge Galea De -bono’s own office.

When Judge Galea Debono tookover he was young and inexperi-enced and today admits that goingto his first council meeting was adaunting affair.

some of the members, besidesJean Cauchi, were some not soyoung tourism heavyweights like JoeZarb mizzi, Walter Zammit Tabonaand the redoubtable miss mabelstrickland who represented the XaraPalace hotel.

at the time, the mhra was lessproactive than today – its majorfocus was seeing what was wrongand clamouring to make it right. Thissucceeded very well until, in 1969,Judge Galea Debono faced his firstbig battle on the tourism front whenall the employees of the major hotelswent on strike. This was a tough timeand it took a lot of protracted nego-tiations to get the workers back. Themhra was there to assist the hotelswho, together with their own legaladvisers, were trying hard to solve theimpasse, mostly united in workingout a collective agreement with theGWu. here, the mhra was very ac-tive and advised its members regard-ing all aspects connected to thevarious agreements.

another mhra achievement wasthe formulating and acceptance byall hotels of a common contract withtour operators, who were very strongat the time and practically called allthe shots. as a result, a significantamount of the work done regularlyby hotels was eliminated and thedealings – which became moretransparent to both parties – wereeasier and more rewarding. The ho-tels could see clearly how effective itwas to be grouped and to respond ina unified way. This remained one ofthe most important mantras that themhra used in all its dealings withGovernment and all other bodies.

The role of the mhra kept grow-ing as the numbers of tourists keptescalating. The mhra and Judge

the MhRA wAS leSS pRoActive –

itS MAjoR focuS wAS Seeing

whAt wAS wRong And clAMouR-

ing to MAke it Right.

“ Top photo: Dr G. Felice, Minister responsiblefor tourism, addresses hoteliers. Le photo:Jean Cauchi. Photo above: Judge Joe GaleaDebono.

The hisTory

Galea Debono assisted hotels intheir dealings with tour operatorsand whenever the latter did not stickto credit terms the mhra broughta lot of pressure to bear on them toabide by the conditions of the con-tract. at this time, the mhra wasseeking even more direct links with

foreign tourism associations as theneed to keep in touch with the for-eign market was further recognisedand developed.

after the long stint as president bythe originator of the mhra, therenowned industrialist ninì micelifarrugia took over the presidency.is-sur ninì, as he was known, washead of farsons, which had devel-oped the Verdala hotel in rabat.

after him followed another gen-tleman of tourism, Joe Zarb mizzi,who was at the time heading the old lady of maltese hotel lore, ThePhoenicia hotel. mr Zarb mizziwas to later move on as Gm of theexcelsior hotel which stood on thegrounds of the recently-built hotelbearing the same name as its pred-ecessor.

in 1972 norman mifsud took overas president and managed to updatethe association to modern timeswhen tourist arrivals grew to stratos-pheric numbers and needed a newvision to cope with the changes.

from here on, the history of themhra is best related by the protag-onists themselves – the presidents.

Top photo: One of the first MHRA meetings.Right photo: Anthony Miceli Farrugia.

NormaN mifsud took over the reins of the mHrapresidency in 1972, when the numbers game reallystarted being played. Till the end of the 1960s, the num-ber of tourists coming to malta was under 200,000 an-nually. They shot up to close to a million and have nowsurpassed the million mark in the space of 40 years.

Globally, tourism also changed as easy travelling be-came accessible to more people. The globe shrank andtelecommunications changed the way we look at theworld. undreamt of possibilities became a reality.

obviously, given the change in scenario, the mHra,its members and hotel and restaurant operators had tochange their outlook.

all this called for a newer, more visionary mHra. asit takes another plunge into the future, we look back andsee how the association and its presidents met thechanges in local tourism and in malta.

over the years, the mHra has enjoyed the tenure of astring of presidents who, through foresight and courage,guided the association through tough patches and pros-perous times. at this point in time, the mHra is readyto reap the several benefits of past accomplishments aswell as take stock of what needs to be done to ensure fur-ther national benefits in the sector. The presidents them-selves have their say.

Norman Mifsud1972-1983

“Taking over the presidencyafter Joe Zarb mizzi was bothan honour and a challenge. iwas to lead the association forthe next 10 years through somevery interesting but also turbu-lent times. in 1972 malta was at-

tracting some 150,000 visitors mainly from uK. in thoseearly years, dark clouds loomed, with various conflictsgoing on around the globe including the mediterranean.

“at the mHra, we felt it was essential to expand ourmarketing network beyond our core market and attemptto improve our seasonal offering. The local TouristBoard (the predecessor of mTa) opened offices in Ger-many, italy and france. Thus the mHra efforts weresuccessful and instrumental in tracking and finding newmarkets. Locally the Tourist Board was changed and wehad the setting up of the National Tourism organisation(NTom).

“We ensured that the various tourism operators werenot only represented but also took an active part in thedecision-making process. We also established a funda-mental rule that would safeguard our interests in thenational tourism body – the operators would contributein a monetary way to the NTo but they would have au-tomatic representation.

“By the late 1970s, we had reached the target of700,000 visitors annually. Then in the 1980s we saw areversal of this success and we had a crisis, with hotelson shorter working weeks and some even closing. inan attempt to protect employment, a freeze on hotelrates (which were then regulated by government) wasintroduced, together with an imposed fixed ratio ofemployees according to bed capacity and category. Wetried as much as we could, in those difficult times, tofight off these draconian measures. as an associationwe also took an active interest in various areas that im-

pacted on the tourism productand in exploring ever newways of promoting malta.”

Donald Pace Bonello1983-1984

“during my tenure as Presi-dent of the mHra, the associa-tion was faced with dwindlingfigures of tourists visiting the is-land. Hoteliers had already re-

signed themselves to the fact that improvement in the rateof exchange (in particular sterling) was far from possible.The mHra requested help from the authorities, such asa reduction in charges for water and electricity and the re-introduction of customs duty exemption on plant andequipment to refurbish hotels.

“The highlight of my tenure was the association’s initiative, through the international Hotel association(iHa) under the auspices of the European Travel Com-mission, to launch a pilot programme to combat seasonalfluctuation in tourism in three mediterranean resorts


The hisTory

Former presidents talk about what

the mhRa fought for and achieved.

Historyin themaking


The hisTory

(malta, rhodes and Cyprus).Later i was also honoured to bethe first-ever mHra CEo from1998 to 2005.”

Ian DeCesare 1986-1989

“my mHra presidency star -ted at a difficult time when theGovernment of the day chose

not to abide by an existing law which allowed the associ-ation to nominate its representative on the NTom board.Government wanted to nominate the representative forus and the minister for tourism changed the law to suithis purpose. We obviously objected and this led to a walk-out of the entire private sector from the NTom.

“This lasted until the government changed in 1987and relations with the ministry and with the NTomwere back to normal. The following couple of years sawsteady and profitable growth in tourism as the publicand private sector co-operated to increase both 5/4 starbedstock and tourist arrivals to malta. at this time, amajor hotel reclassification exercise took place and theinstitute for Tourism studies was set up. a key eventthat was completed in 1989 was the preparation of themaster Plan for Tourism, mapping out a holistic strate-

gic approach for the future de-velopment of our industry forthe coming years.”

Edward Melillo1989-1991

“it was a great honour to benominated president. i knewthat we needed to organise our-selves better to be able to dealwith the ever-increasing num-

ber of hot issues that we had to face as we went forward.These included the introduction of the Government levy(later replaced by VaT), the sit-in at the Phoenicia andthe setting up of the Council for Economic develop-ment. However, i think that the one that caused mostconcern, at the time, was the establishment of the Pricesand incomes Policy which was controversial and in-

volved lengthy and heated dis-cussions among the employers’associations and the unions.”

Albert Muscat Inglott1991-1996

“amongst the tribulationsfacing the industry during mypresidency, the Gulf War andits repercussions will remainremembered for the uncertain -

ty they caused. ironically, it turned out to be a blessingin disguise and positively instrumental towards ourtireless efforts to persuade rather obstinate mandarinsto part with much-needed funds towards a long-over-due aggressive marketing blitz. i recall our stand whenthe levy was rudely imposed solely on our industry. our

efforts in this regard produced some concessions but,alas, ultimately the levy remained in place. i am pleasedto have re-launched the quarterly mHra magazine and

to have been instrumental inestablishing our association’sfirst HQ in sliema.”

Winston V. Zahra1996-1998

“Primarily, it was an honourfor me to be elected to this pres-tigious position. i enjoyed mytenure at the helm of the associ-ation as it gave me the opportu-

nity to be of service to our colleagues within the industry.“during my period as president, i set out to achieve two

major targets – to raise the status of the mHra and to up-grade the infrastructure so that we would be able to offera better service to our members. during this time, we alsostarted issuing the mHra quarterly report – today, thishas become a very important tool for every hotel manager

and is used by banks and Gov-ernment to benchmark the in-dustry’s performance.”

Joseph Preca1998-2000

“i became president at a timewhen the government contin-ued in its recognition of themHra’s position in the publicsphere. Government, in fact, ap-

pointed mHra representatives on the mCEsd and onall the newly-formed mTa (previously NTom) boards.following my predecessor’s initiatives, the mHra had be-come immensely proactive and i made sure that the mo-mentum that had started did not cease. They were veryexciting times and most of our objectives were reached.

“Key events during my tenure included the removalof the Toss, which allowed the marketing directorateof mTa to have, for the first time ever, substantial fundsfor advertising and promotion in the uK and other coremarkets. The public presentation of the deloitte Hotelsurvey gave the mHra strong media coverage whilethe advent of the internet was identified as the way for-ward, giving the industry the opportunity to attract in-

dependent business after beingtour-operator dominated fordecades.”

Anthony Chircop2000-2002

“during my presidency, gov-ernment was preparing for Eumembership. We had to pro-vide industry players with ac-curate balanced information

about the Eu while re-shaping and re-motivating thetourism industry. This period immediately followed thenegative and unfortunate events of 9/11 in the us, andother acts of terrorism within Europe.

22 / The roAd AheAd / MhrA

The hisTory

“The mHra was invited to participate on various na-tional committees even beyond our original remit, tocontribute on a much wider national spectrum. i aimedto further consolidate the mHra’s leading role in thetourism-related sphere, while maintaining an apoliticalframe of mind and ensuring that, irrespective of the sizeof their investment, members were to be guided, assistedand rewarded for their confidence in investing in thesector. amongst other things, i recommended the enrol-

ment in HoTrEC and made ita point to take part in its activ-ities at international level.”

Winston J. Zahra Jr2002-2004

“as the youngest mHra Pre -sident, and the first son to followhis father into the role, i greatlyenjoyed my tenure. They weretwo hectic years within which

we achieved a great deal for the mHra.“The most significant issue was undoubtedly our

stand on Eu membership. following extensive researchand consultation with our membership base, the mHraled many other constituted bodies in the run-up to thereferendum as part of the ‘Yes campaign’.

“There were many other initiatives, including thelaunch of the associate membership scheme, the estab-lishment of the past presidents’ council, negotiation ofthe electricity surcharge capping system, extensive me -dia presence which ensured the mHra was kept at theforefront of the local political landscape, lengthy dis-cussions, albeit unsuccessful, to try and reach agree-ment on a social pact for the country, enhancement ofthe mHra quarterly reports prepared by deloitte, ele-vating the report to the leading source of tourism sta-tistics available locally, negotiation of reduced dataprotection law fees, successful lobbying to ensure thedevelopment of st George’s Bay beach and collaborationwith Enemalta to solve power supply problems in thesliema and st Julian’s areas. We were also involved inthe preparation of budget papers to ensure capping ofthe accommodation VaT rates at 5%, enhancement of

the tourism marketing budgetsand the introduction of a VaTrecoverability system on con-ferences held in malta.”

Justin Zammit Tabona2004-2006

“i believe the best word todescribe my time at the helm ofthe mHra is challenging onall counts, from wanting to do

more for the association and its members to balancingthis with my existing work and family responsibilities.

“The tourism industry spreads over a number ofareas and as the mHra, we are continuously lobbyingfor more marketing activity of the maltese islands. Themost important issue during my two-year term was theintroduction of low-cost airlines. my first interview ontaking over the presidency centred on this issue which

eventually became a national one. ironically on the daythat i was handing over my presidency, the first ryanairflight arrived on the island.

“as the mHra, we were at the forefront in lobbying forthe introduction of low-cost carriers without ever under-mining the importance of legacy airlines. it was importantto have them as part of our business mix. it took a goodnumber of meetings and reports locally to convince gov-ernment to support the introduction of low-cost carriersand also abroad with different airline representatives.

“i believe that seeing this come to fruition was a majorstep in the right direction, notonly for the tourist industry butalso for the maltese to travelabroad at a reduced cost.”

Josef Formosa Gauci2006-2008

“my presidency was, to say thevery least, interesting. i would saythe key event happened on thevery first day i took over. That

day, low-cost carriers be gan operating to and from malta.i was naturally involved in the lengthy and often contro-versial aftermath of this.

“until the advent of low-cost carriers, the availableflight capacity was limited but once new routes openedup, the increase in flight capacity also signalled impres-sive increases in tourism numbers. The mHra was apivotal player in the whole debate, with its successfulPr, lobbying and campaigns obtaining the desired re-sults. i was also involved in steering the mHra throughthe 2008 general election, when we had the duty and re-sponsibility to present our agenda to all the contestingparties while at the same time remaining impartial.

“all in all, my time as mHra president was thor-oughly rewarding, albeit challenging. i came in directand constant contact with the various groups and indi-

viduals operating within themaltese tourism industry andwe worked closely together toget the results we desired.”

Kevin DeCesare2008-2009

“The mHra’s achievementshave been many and varied andalthough i feel a lot was doneduring my tenure, i would prefer

others to evaluate my role. my council and staff were al-ways excellent in their support of the post, which is un-believably taxing but which offers great satisfaction. Wewere at the time going through challenging times, maybethe most challenging since the formation of the mHra,with the worst recession since the great depression.

“What i tried hardest to do during my presidency wasto convince government to seriously concentrate on theproduct in its totality. We all agree that unless the productis up to standard, then we will always struggle to attract thenumbers that this industry needs to be sustainable. it willcost the authorities far more to convince tourists to visitthe island if the product is not given a total makeover.”

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GeorGe Micallef was elected MHra president in 2009.His baptism of fire came the day after he was elected, when hefaced the first challenge – having to give his reactions to the 2010budget within moments of his appointment.

When he accepted the post, he knew he would have to be pre-pared but he had hoped for a few days to get his bearings.

“after all,” he confides in his usual business-like way, “what yousay will be conveyed publicly and reflects on the association thatrepresents an enormous capital investment, employing thousandsand directly contributing to over a quarter of the nation’s economy.”

Sounds like one slip and down you go. But how does he eval-uate his presidency?

“i feel privileged to have served as President of the MHra –an association i have been involved with for so many years, andwhich represents an industry which i have formed part of formost of my life. i accepted the post with a lot of enthusiasm andplans. i was in a post formerly occupied by stalwarts of the busi-ness who left their mark and contributed a great deal to hospi-tality and tourism, so i felt it was absolutely necessary that i also

do my part and con-tinue to build on whathad been achieved be-fore me.

“i had a good teamand i will leave verysatisfied with what we

– the council, the ceo, the secretariat – achieved. We now haveset the pace for a better adjourned and a more effective MHrathat can face the challenges as it has always done in the past.”

i ask him if he feels his was just a story of success or whetherhe is relieved to leave the post.

“of course, there are some aspects i felt i could have donemore in. one area is keeping our members aware of what’s takingplace in real time, and improving the level of communication,not only with the members but also with the general public.”

Here Mr Micallef explains how the MHra works. first of all,although it represents such a huge chunk of the economic forceof Malta, it still has a relatively small team which has to cope witha huge amount of issues both locally and at eU level – it’s like deal-ing with two governments. The MHra team has to keep abreastof all that is happening locally and abroad and gives its valid con-tribution to several diverse issues before they become known tothe industry player and the general public.

MHrA / tHe roAd AHeAd / 25

IntervIew

After two years at the helm of the MHRA George Micallef talks to Victor Calleja about

the tribulations, the triumphs and the few misgivings he has about his time as president.

He looks at the past, the present and sees a good but challenging future for the MHRA

and tourism in general.

Thank you mr president

‘’I have to gIve way for someone wIth newIdeas to take over thepresIdency.

26 / tHe roAd AHeAd / MHrA

IntervIew

all this takes time and energy and often, because theMHra works behind the scenes, the work of research,lobbying, preparing and analysing reports, goes unno-ticed. few know that the MHra, through its affiliationin HoTrec, which groups together all the eU memberstates’ hotels and restaurants associations, vetoed an iSoinitiative which would have had untold repercussionson the local operators. another issue was the food la-beling directive, among many others. Some of these ini-tiatives, if accepted as they were originally proposed ateU level, would have had a huge effect on the industry.Unfortunately this does not give the association – orany association operating like the MHra, any easy Pr.

“ideally, members need to be made more aware ofhow we operate and what the MHra achieves. But now,with the new structures of the MHra, both in counciland the secretariat, and with a new ceo, the situationshould improve. The new ceo will have a more centralrole and his remit is more of a directional one supportedby an executive council made up of members who areappointed on the basis of their area of expertise.”

according to Mr Micallef, the main aim of the restruc-tured MHra is to have a more pro-active organisationwhich fights and stands for a long-term sustainabletourism industry.

When the MHra clamours for a better product and acleaner, more efficient Malta, it does it not for tourists toreturn and so fill the MHra members’ coffers. it’s for usas citizens to enjoy the benefits and in so doing increasetourists’ satisfaction and as a consequence members’ bot-tom line. and from that proverbial bottom line, the whole

of Malta – its Government andall its citizens – benefits.

The outgoing MHra presi-dent says that Malta has ach -ieved a lot over the years. Thetourism industry players, bethey government or the privatesector, have come a long way. Hewas never reluctant to criticisewhen necessary but equallypraised achievements when due.However, certain issues like airMalta have been left to fester forway too long and such uncer-tainty does not help anyone.

one major area of concern facing the hospitality sec-tor is profitability. Hotels and restaurants are seeingtheir return on the vast amounts of capital investeddwindling. The most worrying thing about this is thathotels and restaurants need the capital to plough backinto the business so that they can retain a competitiveedge. and obviously if the operators – MHra members– suffer, then the whole industry and Malta follow suit.

“although the numbers have been relatively good, ifyou crunch them they paint a less rosy story for the in-vestors,” says Mr Micallef.

There are concerns over next year, given the bleak eco-nomic scenario in europe and the uncertainties at airMalta. But, as is his wont, Mr Micallef does not let agloom scenario take over.

“We’ve made it through all sorts of calamities so i’msure that, with the right attitude, we willmake it through this one too. We will, ifnot bounce back, get back on track.”

Mr Micallef will be relinquishing histwo-year presidency but will still give hiscontribution to the MHra in otherspheres. He leaves knowing that thestructure is stronger and the member-ship base bigger. The council and secre-tariat will be beefed up. But now he hasto move on and, in his own words, “ihave to give way for someone with newideas to take over the presidency. Mypersonal commitments do not allow meto carry on as president. i’ve been in-volved in the tourist industry all my life,mainly as an hotelier. But i’ve also beena consultant in tourism development forwell over 20 years, working with govern-ment and national institutions, locallyand overseas. These last two years i’veneglected a lot of that work but hope togo back to tourism development andconsultancy work.”

in just two years Mr Micallef has hadto face three budgets, a recession of im-ponderable proportions, a volcanic ashdisaster, the air Malta uncertainty, a VaThike in accommodation, utilities pricesskyrocketing and wars being waged onour doorstep. To think that he startedout feeling that being asked a few ques-tions about the budget was tough.

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IntervIew

A lifetime in hospitAlity – since 1967 to beexact – might have been stressful and tiring. 44 years ofcontinuously wearing a smile on your face and beingcourteous, welcoming and always full of bonhomieeven when under pressure and over-worked, can’t beeasy. And yet George schembri, outgoing mhRA Ceo,still manages not only to smile but to rave about thehospitality profession.

i asked around for a few comments about him. the re-action was amazing – everyone spontaneously smiledand used words which i too have always felt sum him up:a gentleman of the old guard, effective, efficient and pos-itive. A doer who leads by example and who loves people.And after nearly 40 years of hotels, six years ago he joinedthe mhRA as its Ceo and has led it to heights no onethought possible 58 years ago when the mhRA was born.

“the hospitality sector gives you a satisfaction and afeeling that few openings in work offer. it gets you to meetpeople, make friends and learn about cultures and people’sfoibles and humanity’s inner workings. nothing i canthink of comes close to this. in hospitality you have to sella dream, help others enjoy their few days of bliss awayfrom their normal drudgery. that gives our position in

hospitality a lot of responsibil-ity – and for all layers not justfor the Gms and the managers.

“in fact, no matter what roleor position, everyone is re-sponsible for keeping a hotelrunning – the housekeeper, the

engineer, the receptionist. All need to do their utmost tokeep the establishment running smoothly. the same canbe said of a restaurant and its staff. if the service and theproduct offered to clients is coupled with the courtesy thatis so vital to gel the whole holiday experience, then yousurely get a satisfied client. And this satisfaction makesyou feel proud of your contribution to the whole process.it’s like magic – the magic of making people happy andof making people feel at home. And in 44 years of closeproximity to hospitality, i can really say i have made long-lasting real friendships through my work.”

mr schembri has been in hospitality for more thanfour decades and has seen some noticeable changes inhis time. When he started off way back in 1967, book-ings were actually received through the post. “Can youimagine such a scenario now?” he asks smiling.

“today hotel rates are constantly changing. if you hadto wait till the booking is confirmed by snail mail, thewhole industry would collapse.”

then change came with telex, fax and e-mail. “As with everything else, progress is magnificent and

you endorse it happily. But i do think the personaltouch of letters has been lost and, in the process, a bitof humanity was lost too.”

how has he seen the mhRA change and how will it copewith the new vision, the new structure and the new Ceo?

“Change, as i said before, is not always completely good.But change and adapt we must to meet the new challengesthat lie ahead and that will be increasing in the near anddistant future. We have to be prepared and plan. so i’mhappy to be passing my baton to someone younger,fresher, with a completely new agenda and from a differ-ent background. i came from a hotel background and thatwas vital – at the time i think it was more important tohave a direct link to the hotel operation, especially as wehad just joined the eU and the challenges were huge andmore connected to the operational point of view.”

now, according to mr schembri, the scenario hasslightly shifted.

“We know what to expect or at least how to cope withit. now we need to improve our strategy and our policy.the new Ceo is not from a hotel or restaurant back-ground but he is well versed in policy, both on the pub-lic as well as the private level. he will also have a bigger,more beefed-up secretariat which will ensure continuityin the hotel and restaurant sphere. i am very confidentthe future – even if it does have its many imponderablesand its obstacles – will be even better than its past.”

The manwith thegolden smile

The hospiTaliTy secTorgives you a saTisfacTionand a feeling ThaT fewopenings in work offer.

“

After a lifetime in hotels, George Schembri took over

as CEO of the MHRA in 2005. Now that he is about

to retire from its leadership, his bonhomie and his

persuasive ways will be missed by many. He tells

Victor Calleja why nothing beats a career in hospitality

and why the MHRA will go from strength to strength.

The MhRA is going through atime of change and re-evaluation. ithas renewed its vision and the manchosen to gel all this change and de-velopment into place and to makethe transitional period as smooth aspossible is Andrew Agius Muscat.

The first obvious question i askthe new CeO is how does he feelabout this new post? is it challeng-ing enough?

Mr Agius Muscat looks at mewith a smile, as if to say that i mustbe joking.

“it is an enormous chal-lenge,” he assures me.

“First of all, i’m takingover from someone whoseact is dauntingly difficultto follow. he is charm per-sonified – he knows everyone anddoes it all effortlessly. The MhRAitself boasts a history that is theenvy of most other associations. itrepresents a most vital part of oureconomic motor and this, coupledwith the big question mark which isthe future, is more than merelychallenging – it is a tall order. how-ever, together with the secretariatand the MhRA council, i can, andwill deliver.”

This is not just his brash youngyears talking. Although self-assured,Mr Agius Muscat is no arrogant,over-confident man with just wordsand theory to his pedigree. he hasbeen around and delivered both in

the public and private sector. sowhen he makes a statement that hewill deliver, it is backed up by theproper credentials.

Mr Agius Muscat has occupiedtop positions for most of his 16years in employment. Fresh out ofUniversity he was already high inthe ranking at Management sys-tems Unit Ltd (MsU), government’sagency set up to spearhead the re-structuring programme in the pub-lic sector and the precursor oftoday’s MiTA. he then moved on tohead organisations in both the pri-vate and public spheres and accord-ingly was in charge of projects bothlocally and abroad. his input was

not just of a leader withknown objectives – he

was also instrumental in changingattitudes and practices.

One of Mr Agius Muscat’s theories– which he successfully put intopractice when he was heading otherorganisations – is that success needsto be nurtured and upheld by res -ponding continuously to the custo -mers’ needs in an innovative manner.That is why he felt excited by theoffer of the new post at the MhRA.The MhRA showed the way ahead:they were successful, very successfulin fact. But they still wanted to movefurther ahead and find new ways,new developments and new visionsto become even more successful andmore relevant.


IntervIew

The man appointed to take over where

George Schembri leaves off has quite

a lot on his plate. But Andrew Agius

Muscat knows it and relishes the

challenge, says Victor Calleja.

a manwith amission

‘’TogeTher wiTh The secreTariaT and The Mhra council, i can, and will deliver.

32 / tHe roAd AHeAd / MHrA

IntervIew

As the world changes, we need tochange. But if we prepare for thechange or effect the change our-selves, we are ever so more relevant.

The word relevant seems to cropup a lot in our discussion. does hefeel the MhRA is not relevant?

“it is more than relevant,” he tellsme. “i know how successful it hasbeen with members on other boards.Moreover, it has been effective withgovernment and in its work to influ-ence decisions taken abroad whichwill affect Malta or have an impacton the Maltese economy. But weneed to build on what we have andbe a few paces ahead all the time.”

The main thing for Mr AgiusMuscat is to change only if it is im-portant and necessary. he does notbelieve that change just for the sakeof changing is a good policy.

The MhRA’s success is measurednot just by its achievements but alsoby the trust put in it by the leadingnames in Malta’s hospitality industry.

These leading restaurateurs andhoteliers have been very successfulin their own lines. however, theyhave remained tied to the MhRA,which has been instrumental inlobbying and making its members’voice heard for over 50 years.

“it has evolved a lot since its in-ception and become increasingly anassociation that is consulted by gov-ernments and other bodies,” saysMr Agius Muscat.

“All this is extremely positive,” MrAgius Muscat says. “We have tobuild on it to add on to our impor-tance in local politics. We need to beeven more proactive and seek a newplatform to actually set the agendaand to influence policy even beforeit is discussed by anyone else.

“in fact, this is already happening– the way the MhRA started therestaurant study to find out whatreally makes the sector tick is animportant indicator of what i feel tobe the best way forward. We need to

be catalysts for change and so weneed to move into studies and re-ports that will start debates going inpublic fora or to be discussed withthe authorities. This will ensure thecountry then adopts the best poli-cies possible, not just for tourismbut for everyone involved.”

Mr Agius Muscat agrees that hisbrief is challenging.

“What we are all agreed upon is toget everyone to appreciate that whatthe MhRA is trying to achieve isnot just for the sake of the membersor the association but for the wholeof the country. This is the vision ifeel is most important. This is whati want to be my most importantguiding light.

“We are not reinventing anywheels – we have been doing thisfrom day one of the MhRA’s incep-tion. But sometimes the message isnot communicated well. This iswhat i wish to do well – to reachour members, the wider audience,and the authorities in a more effec-tive manner.

“We need to show that what allMhRA members want is not nec-essarily just for the hotel guests orthe restaurant clients but for thewell-being of the whole country”.

The new CeO is full of ideas,confidence and pride in what heperceives to be the Maltese dNA.

“We have hospitality running inour veins and we are always verywelcoming,” says Mr Agius Muscat.“This does not mean we must notpolish up some aspects of our actand keep trying harder to be morecompetitive in what we offer as atourist destination.”

however, this belief in our dNAmakes his job easier – he believesthat if the product (Malta and theMaltese) is good and the conveyorsof the product are also extremelygood (hotels and restaurants) thenthe consumers (tourists) will gladlycome and enjoy a genuine experi-ence on our shores. The profit ele-ment will naturally follow to allconcerned.

The new CeO at the MhRAmight have a hard act to follow andhe will surely be put under the spot-light to confirm that he is really upto the challenge. But one thing hecertainly does is talk sense and,from my dealings with him, i canconfirm that he delivers things justas planned and promised.

The secretary general speaks

We Asked dR hUgh PeR-ALTA for a few comments aboutthe MhRA and tourism in Malta.

dr Peralta, who has been secre-tary general of the MhRA forthese last 10 years, said that whenthe MhRA was set up, it tookcourage and foresight to come upwith such a body when tourismhardly mattered.

Today, 53 years after that his-toric start, it can easily be said thatpart of every Maltese individual’spay packet is somehow connected

to the tourism industry. it is very hard to estimate exactly what effecttourism has on the whole economy, but the ripple effect of tourismis well-recognised and all agree that it is significant.

dr Peralta contends that, “We have to look after our tourism andmake sure we have the edge on our competitors. That is why it is soimportant to keep improving our product and keep the place clean,safe and, ultimately, keep Malta accessible.

“The MhRA has an important role in the development of thetourism industry. Throughout its years of existence, it has been animportant body for its members and for tourism in general.”

dr Peralta concludes by saying that, “As long as the MhRA isthere, it will continue to protect the interest of its members and togive valuable advice to government and relevant authorities, whichover the years has proved to be beneficial not only to hotels andrestaurants but also to Malta and its community.”

The Council of the MHRA congratulates the restaurants which have just been awarded theMHRA Recommended label after having undergone a rigorous and independent auditing process

that certified Professional Management, Food Quality and High Standards of Service.

MHrArecommended

In pursuIt of excellence

MALTA HOTELS & RESTAURANTSASSOCIATION



S LETOHA NTS

An initiative of the Malta Hotels & Restaurants Association endorsed by the Malta Tourism Authority.


Re-bRanding

The changes To the MhRa’s logo are not just cos-metic or simply dictated by a need to look modern ornew. Rather, the entire MhRa, its structures, its function,and its secretariat have been overhauled and changed.

The need for this change was felt because the associa-tion has evolved and is now more dynamic, more proac-tive and has a set agenda to be more involved in directingnational policy. The changes that a modern society hasbrought about, the effects of the internet towards moreefficient travelling, together with eU membership, havechanged the whole ethos of the association.

all this was happening very successfully even beforethe changes in the logo and structure were instituted.But it was of immense importance to regularise andemphasise the new changes that were taking the asso-ciation and its members by storm.

The old logo was attractive and served a very goodpurpose. The new one is more dynamic and more for-ward-looking. It is cleaner, crisper and more in synchwith the association’s new ethos of leading, of finding away forward and not simply reacting to what is happen-ing around us. The conceptualisation and design of theMhRa’s brand identity was entrusted to contenthouse, whose team of designers followed the MhRa’sbrief perfectly.

The icon chosen for the brand identity – the square –is a strong symbol that captures the MhRa’s strongstanding with the relevant stakeholders. The icon alsoincludes the MhRa acronym which builds upon the or-ganisation’s heritage in a harmonious but subtle way.

The colours used in the branding are not used as solidblock colours but have been given different gradients toadd perspective and depth to the visual aspect of the logoitself. The colours are blue, which through its strengthemphasises the association’s own force, and red, which isthe stronger colour in the Maltese flag and which in thebranding symbolises the dynamism of the organisation.

The typography used is clean, sophisticated and mod-ern – this reflects exactly what the association has aspiredto be these last years but is now being more recognised.

The new MhRa branding is a good move forward. It isa strong, visual identity which is also memorable and im-mediately recognisable. In this way the branding will helpto build on the MhRa’s deep-rooted heritage whilst in-fusing a new lease of life into the organisation’s brand.

The attractive logo that has been designed for the MHRA is

just a small step of the whole re-branding exercise.

The re-brandingof themhra

The need for This change was felT because The associaTion has evolved andis now more dynamic, more proacTive andhas a seT agenda To be more involved in direcTing naTional policy.

“ MALTA HOTELS & RESTAURANTSASSOCIATION



S LETOHA NTS

mHrA / THe rOAd AHeAd / 37

TOurism Trends

Over the years, the avid demandfor the Maltese islands as a holiday des-tination has been fuelled by our distinctblend of culture, history and climate.Consequently, in order to exploit ourcompetitive advantage in the tourismsector, local resources have been allo-cated to the development of this lucrativesector. Initiatives aimed at attracting ad-ditional volumes of tourists, such as theintroduction of low-cost airlines and theinflux of cruise-liners, have also beensuccessfully implemented.

Demand for Malta as a holiday desti-nation, as measured by the number oftourist arrivals, increased by 235,259over a span of eight years (2002-2010).When compared to the most promising year for thetourism industry prior to the recession in 2008, thenumber of tourist arrivals in 2010 increased by 3%.Moreover, tourist arrivals between 2010 Jan-Jun and2011 Jan-Jun increased by 68,104.

Over the period under review (2002-2010), the pre-dominant source of tourist influx came from the United

Kingdom, Germany, France and Italy, in that order. yetit must be highlighted that the number of Britishtourists declined by 51,000 over the eight-year periodunder review (2002-2010).

Despite the positive trend registered for the volumeof tourist arrivals from 2002 to 2010, the aggregate vol-ume of nights spent in Malta during the same periodremained almost unchanged (see figure 1). It is no won-der then that the average length of stay, that is, the num-ber of nights spent per tourist in Malta, has beendeclining since 1995. table 1 shows the decrease in av-erage length of stay per tourist and the decrease in oc-cupancy levels of local accommodation in Maltabetween 1995 and 2009. these developments in the ac-commodation sector had direct implications on outputand profitability levels. Indeed, while output registereda moderate increase, profitability shrank as the share ofcosts per unit of sale increased from €0.79 in 2002 to€0.86 in 2010.

hotels’ and restaurants’ sales registered an increase of7% between 2000 and 2008. yet, due to the global eco-nomic slowdown brought about by the financial crisis,the economic wealth produced by the industry between2008 and 2009 underwent a drop of 12.8%, though itrebounded by 12.1% between 2009 and 2010.

the hotel and restaurant industry

past, present… future

Figure 1: Aggregate volume of nights spent in Malta between 2002 and2010.

Table 1: Changes in average length of stay and occupancy levels between1995 and 2009.

Our tOurism industry is One Of the leadingdrivers Of ecOnOmic grOwth.“

Clyde Caruana looks into past and present trends in tourism and anticipates

what lies ahead for Malta in this most important sector of our economy.

Tourist arrivals

nu

mb

er

of

dep

art

ing

to

uri

sts

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

1 2 3 4 5 6 7 8 9

9,700,000

9,950,000

10,200,000

10,450,000

10,700,000

10,950,000

11,200,000

total number of nights (right scale) total arrivals

Decrease in

average length

of stay per

tourist in Malta

between 1995

and 2009

Decrease in

occupancy levels

of local accom-

modation in Malta

between 1995

and 2009

Overall 11.2% 23.0%

2-star hotels 10.3% 28.2%




38 / THe rOAd AHeAd / mHrA

TOurism Trends

In employment terms, the hotels and restaurants in-dustry employed 11,199 full-time equivalent employeesin 2010. (Full-time equivalent is an indicator that meas-ures labour hours worked in terms of one employeeworking full-time. Only employees whose main sourceof income originates from a particular industry aretaken into account.) this figure is slightly lower thanthe 2008 and 2009 levels of employment of 11,751 and11,766 respectively.

Over a span of 25 years (1985-2010), the hotels andrestaurants industry infrastructure underwent evidentmodifications to cater for developments in tourist de-mand. Between 1985 and 2010 the accommodationmarket welcomed nine new five-star hotels and 21 four-star hotels. Consequently, the number of bed places forboth accommodation tiers increased by 5,212 (303%)and 10,116 (187%) respectively. Conversely, 21 two-starhotels and 16 three-star hotels closed down, reflectingthe shifting trends of the tourism market. this implieda drop in the number of bed places for 2-star hotels of810 (61%). although the number of bed places for 3-star hotels between 1985 and 2010 increased by 4,721(99%), it must be highlighted that between 2005 and2010, the number of bed places dropped by 1,753 (37%).

In the restaurants sector, total tourist expenditurecontributes to one third of the total sales of the sector

under consideration. this figure is calculated implicitlyin terms of the difference between the total sales of thissector less the expenditure of Maltese customers in localrestaurants. When considering the economic contribu-tion for the restaurants sector, figures for 2008, 2009 and2010 stood at €79,383,000, €73,477,000 and €79,674,000respectively. employment-wise, this sub-sector on av-erage employed 3,157 full-time equivalent employees(as well as 3,100 part-timers who hold another job astheir main source of income) over the period 2008 to2010.

On the premise that the local hotels and restaurantssector is highly susceptible to foreign economic shocks,it thus follows that the performance of this sector de-pends on forthcoming global developments. the re-

sponsible authorities must addressthe sustainability of this sector inview of the prospective global chal-lenges. the validity of this statementbecame stronger than ever in viewof the recent warnings reported bythe credit rating agency Moody’s.

Malta needs to address its debt towealth creation burden through thereduction of government fiscal im-balance as well as by increasing theproduce generated by our economy.

evidence shows that our tourismindustry is one of the leading driv-ers of economic growth that couldhelp achieve this goal due to its highmultiplier value and low importcontent. In addition, higher volumeof tourist arrivals does not solely

generate additional value added, but further contributesto the collection of higher tax revenues. It goes withoutsaying that this is achievable thanks to the infrastruc-ture that is already in place for the accommodation oftourists during their stay in Malta.

In order for government to consolidate this effort, itshould primarily develop a target-oriented plan with re-spect to tourist arrivals. the manifestation of promisingtargets can only be assured through the preservation,and to an extent the extension, of the seating capacityof the airlines operating through Malta.

It is vitally important for government to further con-trol the persistent locally generated cost-push inflationthat continues to harm the competitive edge of the localtourism industry. such measures endorse the recoveryof the profitability ratios and investment prospects ac-cruing to this sector which in return can contribute to-wards a sustainable tourism industry.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2 Star 3 Star 4 Star 5 Star

bed

palc

es

Number of bed places

1985 1990 1995 2000 2005 2010

Figure 2: Number of bed places in Malta between 1985 and 2010.

Over a span Of 25 years (1985-2010), the hOtels and restaurants industry

infrastructure underwent evident mOdificatiOns tO cater fOr develOpments

in tOurist demand.

”

40 / the road ahead / Mhra

PoliticianS’ ViewPoint

Reno CallejaMinister 1981-1983

“My tenure as Minister of Tou -rism lasted less than two years. Withmodesty I think I can say that inthat short time, I managed to buildan excellent relationship with theMHRA and the other players in thetourism sector.

“Hotel owners and others werecontributing to the tourism budgetso it was only fair to agree to givethem an important role in decidinghow Malta should be marketed andhow the advertising budget shouldbe spent.

“In the early 1980s, times werevery hard for the tourism industry.The world was hit by an oil crisisand the price of fuel skyrocketed.Mass tourism suffered a severe blow.British tour operators were threat-ening to drop Malta from theirbrochures if the fluctuating rate ofthe Maltese Lira continued to ad-versely affect their plans. They in-sisted that we guarantee a fixed ratefor the British Pound. The then Fi-nance Minister, Lino Spiteri, starteddiscussions to introduce a schemewhich became known as the for-ward buying rate. This was intro-duced just after my stint as ministerand saved the tourism industryfrom total collapse.”

Joe GrimaMinister 1983-1987

“In 1983, as the new Minister forTourism, I faced an industry battlingfor survival.

“There were serious problemswith the UK market due to the fluc-

tuation between Sterling and theMaltese Lira but the Prime Ministerhad the answer. The forward buyingrate (a much plagiarised solution)was conceived. That year, ABTA se-lected Malta as one of three fav -oured destinations.

“A successful campaign on Ca nale5 yielded positive results from Italy.We revamped a fledgling Frankfurtoffice and I appointed Paul Galea, a top-notch researcher from my office, as director. A returning TUImarked our progress.

“We had our share of shocks. Theattack on Libya in April 1986 lost us90% of our European bookings. Itook a marketing team on a tour ofEuropean capitals, meeting scoresof top tour operators in order to re-stabilise our markets. Arrivals in1986 grew by 11% after a growth of5% the previous year. In 1987,Malta’s tourism receipts grew by awhopping 30% on the year beforeand arrivals by 26%.

“I took over tourism when ar-rivals numbered 464,023. I left it at787,501, a creditable 323,478 moretourists than I found and our tou -rism receipts almost doubled inthree short years. Our hotels wereback in business and full.”

Michael RefaloParliamentary Secretary1987-1994; Minister 1998-2003

“Choosing the most significantresult achieved by the industry –which I had the privilege to lead for11 years – from one record to the

Former tourism ministers and parliamentary secretaries give their views on

their ministry’s achievements and their relationship with the MHRA.

The ministershave their say

Reno Calleja

Joe Grima

Michael Refalo

Mhra / the road ahead / 41

next is neither an easy matter northe work of one man alone.

“Despite fierce competition fromour Mediterranean rivals, the SARSepidemic, wars in the Middle Eastand the 9/11 tragedy, the fruitfulpartnership forged by my team andmyself, with the MHRA and otherstakeholders, led to: the doubling ofarrivals from 0.57 to 1.32 million;the trebling of annual income fromLm83.4 million (equivalent to€194.27) to Lm271.46 million(€632.33); changing the industry’sprofile from a barely acceptableimage and making the tourist in-dustry Malta’s biggest direct and in-direct employer.

“Some of the high points of mycareer were: the setting up of the In-stitute for Tourism Studies; thefunding of the tourism degreecourse at the University of Malta;the driving of a policy which deliv-ered all but two of the excellent five-star properties currently on themarket and the coming on-streamof other accommodation establish-ments; the removal of the drain onthe exchequer caused by the For-ward Buying Rate subsidy and theresulting increase in promotionalfunding and campaigns; the enlarg-ing of the Mediterranean Confer-ence Centre; the diversifying ofsource markets and Product Malta;the establishing of the island’s car-rying capacity; and the building ofthe Tourism Satellite Account.

“However, compared to the legis-lation I piloted, which removed thestigma of tourism stakeholders hav-ing to kowtow willy-nilly to minis-terial directives, and the creation atthe turn of the millennium of theMalta Tourism Authority, many ofthese achievements pale into in-significance.

“During my tenure of office, myministry worked very well with theMHRA and I can say with pridethat together we contributed to theprogress and success of the coun-try’s largest industry.”

Joe Psaila SavonaParliamentary Secretary1994-1996

“I would like to think that the big -gest achievement was the upgradingof what we used to crassly call ‘theproduct’ – what Malta had to offer.

“The challenges facing the tour -ism industry in the early and mid-

1990s were various. Numbers of arrivals had then reached newheights, to the extent that the is-land’s infrastructure was bursting atthe seams, and a great deal of en-ergy was spent with other min-istries to attend to these needs.

“As always, the enforcement ofregulations was a problem and anextended role of the Hotels andCatering Establishments Boardhad been envisaged. It seemed theright thing to assume that the dif-ferent roles of NTOM (the Na-tional Tourism Organisation), ITSand other bodies needed a reviewtoo and the concept of a MaltaTourism Authority was conceived.The necessary legislation for thiswas undertaken in the legislaturethat followed.

“However, my baby was Birgufest.This festival of re-enactments, mu -sic and history was a great event.This in fact contributed in no smallmeasure to the regeneration of theSouth of Malta. Birgufest has been asuccess ever since. Thereafter, otherlocal councils were encouraged toset up a theme specific to their townor village for similar fests, albeit ona smaller scale.

“Regular meetings were held withMHRA officials who contributedwith much appreciated advice andsuggestions to many of the under-takings of the secretariat.”

Karmenu VellaMinister 1996-1998

“The Ministry for Tourism, whichwas also responsible for AirMalta,was re-established in 1996.

“In the short term, it immediatelymanaged to reverse the prevailingdownward tourism trends.

“In the longer term, the TourismStrategic Development Plan and theTourism National Master Plan setoff a planned management processtargeting a better and a higher value-for-money product in terms of hard-ware, standards and service. Maltaand Gozo were successfully pro-moted through highly effective mar-keting and offered at competitiveand yet profitable prices.

“The biggest achievement was the collective effort, commitmentand collaboration by all governmentand private tourism stakeholders,especially the MHRA, which gavesterling contributions throughout,particularly in setting up MTA

Joe Psaila Savona

Karmenu Vella

Francis Zammit Dimech

PoliticianS’ ViewPoint

which was all but approved in parliamentduring that legislature.

“The sum total was an enhanced product,higher numbers, improved tourism profileand spend, increas ed profits, additional em-ployment, and a bigger contribution towardsMalta’s economy.”

Francis Zammit DimechMinister 2003-2008

“My major achievement as Minister re-sponsible for Tourism was to introduce low-cost-carriers to Malta.

“In one memorandum after another, Ipointed out to my colleagues in Cabinet thatMalta cannot be out of this equation. Thiswas for the simple reason that more andmore tourists were booking their holidaysthrough the internet and by checking thebest offers available on low-cost-carrier sites.

“I faced resistance for obvious reasons andwhile I persisted with making my case throughmy channels, the MHRA were putting up a lotof public pressure on the issue. I was happywith that since the pressure was strengtheningme in my own internal lobbying.

“My discussions with Ryanair were colour-ful in their own way – I think I could write avolume or two about this chapter in my life!”

We also asked Dr Gavin Gulia, opposition spokesman fortourism, to give us a comment about tourism and the MHRA.

Gavin Guliaoppositionspokesperson fortourism

“One of the major chal-lenges facing the tourismindustry is competitiveness.Undeniably costs for the industry have been on therise, some that we have little,if any, control over, and oth-ers that are purely govern-ment-induced. One of themajor contributors to costs,

which is impacting negatively on profitability, are the utilityrates. If we are in government we will make sure that utilityrates truly reflect oil prices. The industry needs to be ableto enhance its product through higher investment. Also in-frastructural projects must be seen to be done. Tourist areasparticularly in the north have not been upgraded for yearsand need to be revamped. The MHRA knows the industrymore than anyone else and, as we did in the past, we willensure that it will be consulted in the preparation and im-plementation of infrastructural projects.”

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The environMenT

Nowadays tourism and the environment

are inseparable. In fact the environment

is increasingly becoming the most

important factor influencing the

choice of holiday destination. Our

tourism entities are doing more

than their bit to increase the

awareness of, and the need to

develop, a sustainable product.

Sandy Calleja Portelli highlights

a few examples from the hotel

and restaurant trade in Malta.

EnvironmEntal rEsponsibility wasunheard of when tourism first took off in malta– indeed, it was not an issue anywhere in theworld. but times change – nowadays, the tourism in-

dustry has taken environmental issues to heart andis fast cleaning up its act.

admittedly, our islands are congested and cater-ing for the influx of tourists to our shores con-

tributes towards the levels of pollution around us.nevertheless, it is undeniable that the same tourists

also make a significant contribution to our GDp figures.neither of these realities has changed – what is changing

is the industry’s attitude to environmental issues as moremajor players in the market adopt environmentally friendlypractices.

some initiatives utilise cutting edge technologies and in-volve major capital investment, while others have been in usefor many years and are pretty low-tech practices, yet still effective.

one example of the latter is ta’ Frenċ restaurant in Gozo.over the last 30 years, ta’ Frenċ has cultivated its own freshproduce, including herbs, vegetables and fruits. olive oil ispressed from the restaurant’s own olive grove while all thesalt is collected from the establishment’s pans. these oldfashioned methods have a double-edged benefit – they are amarketable angle of fresh, high quality produce served at pa-trons’ tables, and they are also a cost-cutting advantage.

Cleaningupour act

‘what is changing is the

industry’s attitude to environmental issues as more major players

in the market adopt environmentally

friendly practices.’

44 / The road ahead / Mhra

Mhra / The road ahead / 45

a number of local catering establishments have alsoadop ted principles of waste separation, automatic con-trol for lighting, energy-saving light bulbs and the in-stallation of photovoltaic panels and reverse osmosiswater systems.

While small changes on an industry-wide scale go along way towards increasing sustainability, some hotelsand restaurants are undertaking larger projects along-side the adoption of good housekeeping practices. mostlarge companies also provide staff training – this is important as being eco-conscious spreads outside theconfines of the work environment and eco-friendly ini-tiatives are adopted in the private lives of the staff.

major hotels on the islands have adopted traditionalconservation methods alongside modern green tech-nologies. in addition to installing water reservoirs forthe collection of rainwater, which is subsequently usedfor irrigation and flushing systems, hotels are also in-vesting in wastewater treatment plants for second-classwater and reverse osmosis systems for potable water.

the radisson blu resort & spa, Golden sands hasbeen an innovator in the responsible use of water eversince it opened. the resort installed two efficient seawaterreverse osmosis plants with the capability of producingmore water than the whole property needs. this meansthat water from Government supplies is hardly everneeded. the resort also has a sewage treatment plantwhich has, to date, treated more than 90,000 tons ofsewage. the water produced using this process is usedfor flushing and irrigation. Even here the treatment meetsmore than the demand and so the hotel is contributingthe excess second-class water to the parks department.

Cooling systems are simultaneously a necessity forany commercial enterprise and a main source of energyconsumption. Here, catering establishments are alsoleading the way in innovative use of alternative energies.barracuda restaurant in st Julian’s has recently under-gone a major refurbishment which included the instal-lation of a new cooling system. motivated by the needto preserve the appearance of the old building as well asreducing the company’s reliance on fossil fuels, the newsystem is the same as that used on sea-going vessels.

taking full advantage of the restaurant’s proximity tothe sea, the restaurant’s management has installed a coldstorage facility that is cooled by seawater, thus eliminat-ing the need for the installation of noisy, unsightly con-densing outdoor equipment anywhere on the building’sfaçade. seawater is pumped to a number of seawatercooled condensers via the supply header and is subse-quently discharged back to source at a higher tempera-ture. Despite requiring a substantial investment, thenew cooling system has produced energy savings of ap-proximately 30 per cent.

a similar cooling technology is also used at Hiltonmalta where it is complemented by automatic controlsfor heating and cooling as well as solar screens to reduceindoor temperatures.

a number of local hotels are now eco-certified. theeco-certification scheme is run by the malta tourismauthority and requires hotels to satisfy criteria on theirenvironmental responsibility. besides ensuring the col-lection of rainwater, separating waste for recycling andthe use of energy-saving light bulbs, hotels must also use

biodegradable cleaning products and ensure that 75 percent of foodstuffs used are locally produced.

Kempinski Hotel san lawrenz was the first hotel inGozo to join the scheme and has since continued towork on its green credentials, becoming the first hotelworldwide to stop using chlorine to treat tap water. thisis due to the use of a new product which was developedby a belgian company that produces environmentally-friendly products for disinfection of spaces and rooms,process water and drinking water. the product is basedon hydrogen peroxide, which is recognised by the EUfor use in drinking water.

in addition to increasingthe hotel’s environmental aw -areness, the product is alsobeing used for the disinfec-tion of rooms and public spa -ces, thus reducing the hotel’scarbon footprint once again.

of course, sustainable tou -rism is more than just about reducing one’s carbon foot-print and so hotels are looking beyond such measures.the major hotels all offer training initiatives based onincreasing environmental responsibility for their teams,with some hotels also providing web-based distancelearning programmes to their hotel staff worldwide. ahotel in Gozo has gone a step further and has introducedeco-tourism to its guests, offering country walks andagro tourism experiences on local farms where guestsare encouraged to take a hands-on role in the farmingactivities.

although the hospitality industry markets an intan-gible experience, the need for profitability is a very con-crete one and this is reflected in annual financialreports. thus it should come as no surprise that one ofthe major driving forces propelling the environmentalmovement in this trade is a financial one. the reality isthat energy is becoming ever more expensive and in-vesting in alternative energy is translated into savingsin the medium to long term, thus helping to ensure sur-vival in a hugely competitive global market.

Furthermore, as travellers become increasingly awareof their carbon footprint, a percentage of tourists shoparound and feel more comfortable in giving their busi-ness to eco-friendly establishments. Hotels and restau-rants which are more eco-friendly have a marketingedge over their less environmentally aware competitors.in fact, the latest Eurobarometer surveys indicate thatnowadays the most important factor that influences thechoice of holiday is the environment.

Having made great strides in sustainable tourism, thelocal industry is not resting on its laurels, as individualestablishments seek ways to increase their energy effi-ciency by moving away from reliance on fossil fuels.some hotels in malta are investing in future green planswhich include the installation of solar cooling systems,heat recovery management and the use of wind energy.

the hospitality industry is motivated to change by amixture of environmental responsibility and the need tomaximise profitability. the extent to which one super-sedes the other is largely irrelevant as the wider commu-nity benefits from any initiatives that help reduce thelevels of pollution in the wider environment.

eurobarometer surveys

indicate that nowadays

the most important

factor that influences

the choice of holiday is

the environment.

”

mHrA / tHe roAd AHeAd / 47

meetings, incentives, conferences & events

MALTA IS BLESSED with beautiful seas and mildweather and most visitors, especially from colder coun-tries, love to bask in our blazing sun and enjoy the warmsea. And when their expectations go further, they dis-cover our food, heritage, hospitality, diversity, andeverything that makes us uniquely Maltese.

Yet beyond all this, there is something else that putsus in a position to offer more than just sun, sea and cul-ture. This is our creative side, which comes into evi-dence when we offer our islands as a backdrop, or aparticipant in, organised events for corporate compa-nies to launch a product, hold a sales conference or usea venue for anything which brings a number of peopletogether at the same time while in Malta.

Malta is the perfect venue for MICE – meetings, in-centives, conferences and events. The business this sec-

tor generates is astounding, making Malta more visibleto international decision-makers who can influenceothers to visit and experience our islands.

In fact, Malta offers a complete winning combination:hotels of a high standard, excellent conference and ban-queting venues, restaurants with great food, an infra-structure that is very dependable, weather that is mostlypredictable and mild, and a choice of venues, indoorand outdoor, which are easily accessible.

Add to this the security of the country, a dedicatedand knowledgeable workforce, and a very creativegroup of companies (DMCs) which offer their servicesin the MICE segment, and all promises to work likeclockwork.

But out of the boardroom or venue, Malta still offersa bit more and MICE are packaged beautifully withpalazzos, bastions, gardens and a host of other placesthat make the Malta MICE experience truly grand andunforgettable.

In the past few years, we have used Malta in very orig-inal and trendsetting ways. Other countries might beatus in size, in more exclusive beach resorts and in a fewother pluses we might lack, but what we have, whenused well and when the offering is not just original butalso well organised, adds up to a truly winning country.

The MHRA has throughout the years been a strongbacker of all things MICE because when these eventsare held in Malta, everyone profits, from the hotelswhich accommodate the delegates, to the restaurantswhich host them, to a number of other connectedtrades. In fact, even the people who are not directly con-nected to tourism get a boost, because when Malta isspoken of highly, more quality visitors are encouragedto visit our islands.

Malta offers much more than just the obvious

sun and sea and a dab of culture – our islands

are also a perfect venue for the niche, but

lucrative, MICE market.

MICE attack

Top photo (courtesy of Island Hotels): Oriflam event held on the Grana-ries in Floriana – one of the largest open-air events ever held in Malta.Bottom photo (courtesy of MTA): ICN gala dinner at the Upper Barrakkagardens in Valletta.

mHra / THe road aHead / 49

Tourism & HeriTage

IN PROPORTION TO ITS SIZE, Maltahas the second biggest accumulation ofworld heritage sites. Only Rome beats us.All the sites are easily accessible withinless than an hour of wherever you are inMalta or Gozo. We are surely not just sunand sea.But would Malta’s heritage and art be

the same if it wasn’t for the sometimesdreaded throngs of visitors from abroad?As we all know, the treasures we have inour back-yard are the ones we visit andappreciate least. This isn’t just a Malteseomission – most Romans would be ableto tell you where the great sites are, butnot many would have set foot in them orvisited them more than once during someschool outing, if at all. Just like with Romans, Florentines and Londoners,

tourists draw our attention to our rich heritage. More-over, they inspire us to look after it. Throughout theyears, all cultural, historic and folkloristic heritage hasbeen protected and preserved with the indirect help ofvisitors coming to Malta and Gozo.Visitors who come to our islands to enjoy the heritage

and the rest of Malta’s attractions obviously need accom-modation and sustenance. The MHRA, as the main rep-resentative of both hotels and restaurants in Malta, hasthus contributed directly to furthering the interest of vis-itors in our heritage and all the arts, the folklore and alsothe colour, that make Malta the special place it is.

Tourism is seen by someas having contributed, if notbeen the cause of, the de-struction of Malta’s pristineheritage. This is a miscon-ception: tourism is a driverfor conservation of what isuniquely indigenous, be it

heritage, buildings, culture or traditions. All this consti-tutes our unique selling point, which gives us a compet-itive edge. The preservation of these unique elements isthe key for the sustainability of tourism in the longterm. Tourism in all its forms, be it hotels, restaurantsor the rest of the services connected to it, has helped usto generate economic growth, which ultimately has im-proved our standard of living.The MHRA, together with a number of other NGOs

and agencies, has always backed and encouraged devel-opment with a soul and which can be sustainable in thelong term. As with everything else there have been somesins of omission and commission on the part of devel-opers, but the MHRA has always encouraged a properbalance between development and conservation. Hotels and restaurants have become, in themselves,

good ambassadors for visitors to our islands, who havesung the praises not just of our hospitality and theweather but also of what an enviable number of culturaljoys Malta offers. Sun and sea are available in abun-dance in a host of other countries, but our unique blendof sun, sea, hospitality, culture and ease of accessibilityaround the islands has always made us, and should al-ways keep us, an attraction that is hard to beat. Tourism stakeholders, and indeed hotels and restau-

rants, keep the economy well oiled. Visitors to Malta,even the simple sun-seekers, encourage us to rediscoverand conserve our beautiful island, keeping it clean andhospitable.Together with a growing local awareness of conser-

vation, the tourist influx has helped the overall better-ment of our country. Visitors contribute economically,culturally and in making us more aware of our myriadtreasures. The contribution of visitors is hardly anything to be

ashamed of – after all didn’t the Grand Tour help con-serve and increase awareness about the splendours andgrandeur of Rome?

Many people feel that tourism spoils a country’s real essence. Yet visitors to our island, far

from helping in the destruction, have put the spotlight on our history, culture, folklore and art.

Tourism and heritagedo theygo together?

Photo: Ħaġar Qim temple is older than Stonehenge and Egypt’s pyramids.

Tourism is a driver forconservaTion of whaT is uniquely indigenous,be iT heriTage, buildings,culTure or TradiTions.

“


A proper study of the dining experience in Malta has, up

to now, never been on the menu. But this is set to change

soon and the beneficiaries will not just be restaurateurs

but everyone who loves dining out.

A recipefor dining


dining sTudy

Although food And dining play such an im-portant part in the holiday experience, few scientificstudies have been conducted to analyse the actual situ-ation of Maltese restaurants.

however, this is all set to change as the MhRA, in col-laboration with MtA, has started the research neededto conduct an in-depth study that will eventually assessall issues affecting the restaurant sector. findings willhelp draw up a strategy to guide the development of thisimportant sector for long-term sustainability and tooffer the discerning diner a better product.

to date, surveys have revealed that most visitors toMalta are satisfied with the overall experience of diningin restaurants, cafés and fast food outlets. And localsseem to be of favourable opinions too.

of course, certain sectors of the local community areof the opinion that restaurants are generally overpricedand do not offer value for money. unfortunately, verylittle information, if any, exists.

But beyond satisfaction levels, what does the con-sumer think about the whole experience of eating out,including the food, prices, opening hours, ambience andservice? And what information do we have to help es-tablish the extent of any negative perceptions?

in the last 10 years or so, changes in the way we travelhave been quite drastic. But change is constant and vis-itors’ different needs and expectations will keep evolv-ing as the years go by. the same applies to food andeating out.

the MhRA/MtA study will help determine the re-ality in a measurable, scientific way and will analyse allthe problems and pitfalls connected to the dining ex-perience in Malta. ultimately, if the authorities, restau-rant owners, chefs and everybody connected to thetrade responds to the findings of the study, the diningexperience in Malta will benefit tremendously.

in recent years, there has been a huge shift in the mixand numbers of the tourist source markets. the italianmarket, which has a very sophisticated and high foodbenchmark, is now almost at par in terms of numberswith the uK one. Malta is also seeing a number of newvisitors from other countries.

this influx of new customers from new source mar-kets means a different profile of visitors which contrastswith those that we have been used to for a number ofyears. this brings about new needs and challenges tothe sector. in order to maximise the level of satisfactionin the restaurant sector, which is necessary for it to pros-per further, Malta needs to match supply with demand.Among the other issues, the report will establish if thecountry has a large enough customer base to supportthe number of restaurants that exist.

the report’s findings will also be a valuable guide forany new venture – any chef or entrepreneur who is em-

barking on the opening of anew restaurant or the extensionof a present one will find it use-ful. the findings could indicatewhat is lacking, what isn’t pay-ing off and what is most sought

after in the dining experience in Malta. And most im-portantly, it will base its conclusions on scientific re-search which will be carried out with locals and visitors.the findings, therefore, will be beneficial not just to thelocal or foreign diner but also to business.

the results of the MhRA/MtA study will serve as abasis for the drawing up of a development policy for therestaurant sector. it should help identify the key issuesaffecting the sector and offer proposals that can addressidentified concerns. it will guide the sector as to howbest it can realign itself with the industry’s presentneeds to support its development and that of thetourism industry for the years to come.

the study will also provide an in-depth analysis ofthe restaurant industry, denoting the difficulties in-volved in maintaining a business of this nature. the in-dustry is currently facing a number of challenges,including the level of custom, rising labour costs, foodcosts, energy and other operating costs. Meanwhile, thecustomer’s disposable income is on the decline. this iscontributing to a tightening of margins.

tourists, however, are booking their accommodationmore on bed and breakfast and bed basis only, whichhas increased the potential for more eating out inrestaurants. the study will find out if the restaurant sec-tor is geared up to meet the demands and the expecta-tions of new types of clients.

Another aspect that will be evaluated in the restau-rant study is what sort of marketing has been done andwhether the restaurant experience has been properlyfactored in. the employment angle will also be ex-plored – is the industry attracting enough new blood?And if not, is it because the conditions are not good, orare not perceived to be good?

And is it time to look into a change in the restaurantclassification system – which has been in place for quitea number of years without being updated – in order toreflect the changes which the market has undergone.

to ensure the long-term success of the restaurant in-dustry, the changes affecting our society and thetourism industry at present, including the pressuresbrought about because of economic conditions, have tobe factored into any future forecasts.

the results of the MhRA/MtA study that is beingconducted will help us, as a nation, to plan and developmore carefully what has become a most important sec-tor of our economy and one of our most regular leisurepursuits – the dining experience.

By spearheading such an important study, the MhRAis committing its constant effort to be the voice of thehospitality industry, while increasingly taking on therole of leader in Malta by paving the way for a betteroverall experience for the diner and, ultimately, for theMaltese economy.

UltimAtely, if the AUthorities, restAUrAntowners, chefs And everybody connectedto the trAde responds to the findings ofthe stUdy, the dining experience in mAltAwill benefit tremendoUsly.‘’

52 / THe RoaD aHeaD / MHRa

THe eMPloyeeS’ VIew

Robert AquilinaConcierge, InterContinental Malta

“Working in the hospitality in-dustry has been very rewarding tome. The main reason for this is thatI work in a people industry where,together with all the rest of theteam, I contribute to make visitors’stay in Malta a memorable one withthe best service possible. It is sogratifying to see a repeat guest ornew guests saying they came be-cause they heard such good reportsabout the hotel and Malta, that theywanted to come and experience itthemselves.”

Stuart PsailaDemi Chef de Partie, Hilton Malta

“The most satisfying aspect ofworking in this industry is certainlymeeting people from all over theworld. The next best thing to trav-elling myself is having the worldcome to me. You cannot succeed incatering if the highlight of your dayis saving that extra olive. It is allabout being generous, giving timeand yourself.”

Joseph VellaHead Bartender, Seashells Resort

at Suncrest

“The continuous interaction withguests and colleagues alike keepsme extremely motivated. It is veryrewarding work – I’ve been in thisindustry for over 22 years and I’vemade life-long friends of many ofthe repeat clients. It is such a joywatching these guests’ childrengrow and joining in their family cel-ebrations. You feel part of their ownfamily and this is a special rewardhospitality work gives you. Duringmy career as head barman, I can’t

A jobwelldone…To work in hospitality, you have to be ready to strive hard and keep

that smile even when not everything is rosy and exciting. Yet it is a trade

that gives you something more than just monetary gain. We ask some

employees in the tourist sector to tell us what makes their job special.

MHRa / THe RoaD aHeaD / 53

deny I’ve come across a few chal-lenging clients, but it makes my dayknowing that I have contributed insome way to make their holiday anenjoyable one. I encourage prospec-tive students to take on this reward-ing career.”

Johnnie gee (John grima)animator, Mellieha Bay Hotel

“What satisfies me most in myprofession as animator and enter-tainer is when repeat guests to thehotel ask for me by name upon ar-rival. It is a reassurance that they en-joyed their previous visit and leftMalta with pleasant memories. Thenumber of people I’ve met in the jobis unbelievable. Few other jobs Iknow of offer such an opportunity.”

Antonio PanéFood and Beverage attendant,

Casino di Venezia

“The biggest satisfaction in thisjob is seeing customers smile in sat-isfaction. That smile means every-thing as it reflects well on the effortand dedication I and people in myposition give. The smile of everyclient is what I work for and it iswhat will bring them back as repeatguests.”

Anna AzzopardiReceptionist, Maria Giovanna

Hostel

“This is an industry where onemust be committed to work hard forlong hours but the satisfaction in thejob is then great. My aim is to ensurethat each and every guest feels athome. Tourists greatly appreciatethat personal touch. Their appreci-ation is evident in the positive com-ments left on our guestbook and onTrip Advisor. Such comments makeme feel proud that I have contri -buted to make our guests’ holiday aspecial one. So in my opinion themost rewarding thing in working inthe tourism industry is the custo -mers’ satisfaction.”

godfrey Zammitowner/Manager, Ron’s Restaurant

“There are several reasons why Ihave found my work highly reward-ing. The most important is meetingnew people all the time. The fact thatyou help them with all they need –not just regarding the best dishesand best wine – gives me great satis-faction. It fills me with pride when-ever tourists ask for informationabout Malta and I can assist them. Ifeel delighted when clients appreci-ate my work and thank me for thekind service and exquisite food andfinish off by saying that they’ll comeagain.”

Joseph SaydonConcierge, Marina Hotel at the

Corinthia Beach Resort

“The biggest reward in my job iswhen guests leave the hotel and ourisland satisfied with the service andhelp I gave them during their stayand when they are back home theyput our hotel and Malta on themap.”

Andrew farrugia waiter, Red lion Pub

“Personally, what I have found themost rewarding about working inrestaurants is seeing and knowingcustomers are satisfied. I do my ut-most to make sure customers enjoytheir visit and try to make them feelat home as much as possible. 99 percent of our customers are repeatones, which proves our effort isworking.”

ThiS iS An induSTRy wheReone muST be commiTTed To

woRk hARd foR long houRSbuT The SATiSfAcTion in The

Job iS Then gReAT.

”

“WHEN IN ROME do as the Romans do,” is a maxim which mosttravellers have followed since ancient times. Visitors usually want toexperience a country fully and deeply, which is why, throughout theyears, the MHRA has championed anything and everything Maltese. The MHRA has tried its utmost to get its members’ guests to

experience Malta’s unique products – the only condition that hasalways been made is that the quality of the products has to be con-sistently high.When visitors want to experience Malta, one of the best ways is

through a sip of our locally produced wine or a bit of our deliciousġbejnawith scrumptious bread and galletti, bigilla, pastizzi and ħobżbiż-żejt. If they miss out on all these items, they will leave Maltawith an experience that is not complete. It’s like going to Spain andnot having paella or to Italy and not having pasta. Our productsmake us; our products identify us.If visitors do not experience a bite of Malta through its products,

the whole holiday effect would have died long before. But throughexperiencing the unique tastes of Malta, they can also relive thewhole experience even with others who have never been to Malta.It is amazing what a bottle of wine or olive oil, a local glass or a

lace centrepiece can do to promote and prolong the holiday expe-rience. This will be a bit or bite of Malta to cherish and enjoy whileback home.The MHRA has constantly and consistently encouragedall its members in hotels, restaurants, cafés and places visited bytourists to push and champion anything which is Malta-made.We have to be proud of anything Maltese, not just because it is

the result of the toil of fellow Maltese, but also because these pro -ducts serve as ambassadors to Malta and its inhabitants.

Visitors travel to Malta to enjoy our sights, swim

in our seas and walk down our memory lanes.

And most of them love it so much that they

want to stay here. The alternative to this is to

take a bit of Malta home with them, in the form

of our homegrown foods and wines, a few pie -

ces of our locally produced filigree, lace or glass.

AtasteofMalta

Gifts from malta


The MHRA has long been a believer in Malta and its people. Besides

actively and proudly promulgating its members’ business interests, the

MHRA has always given its contribution in a number of other spheres

including employment, training and the economic development of

the islands. We outline MHRA’s contribution to society.

To give and to take


WhaT They ThInk

The numbers are sTaggering. The memberswho constitute the mhra manage assets in excess of€1.5 billion and employ a whopping 18,000 people.most of the 1.3 million tourists who visit malta con-tribute close to a quarter of all the money generated inmalta’s economy. These visitors usually stay in one ofthe properties owned by mhra members, and quiteoften eat at restaurants owned by members too.

The mhra also dedicates a lot of time and resourcesto actively participate in matters taking place abroad thataffect tourism and the hotels and restaurants. mhraparticipation at various levels is an important aspect ofits work to see the successful development of strategiesand policies. all these facts and figures keep the mhraand its president and council, its CeO and secretariatvery much on their toes – they all want to make sure theirmembers’ voice is heard, unified and consistent. Themhra also strives to make sure malta is a better placeto visit and that the country is marketed well and tourists’needs are met. all these factors, if combined properly,would develop a very sustainable product.

however, the mhra not only looks after the interestsof its members but also that of tourism in general – arecognition of the importance of tourism for the islands’economy. since its formation, the association has gone waybeyond what the founder members ever dreamt of doing,constantly striving to work with all associations and otherbodies that need its support in the national interest. gov-ernment and society have throughout the years recognisedthe importance of the mhra’s contribution at nationallevel. The sectors which the mhra, directly and indirectly,assists in include heritage, employment, product improve-ment and cleanliness. it also actively endorses and encour-ages more use of local produce and products whileworking hard to improve the overall aspect of malta notjust for incoming tourists but also for all of us locals.

The first mhra president was a member of the boardof governors of the forerunner of iTs, thus setting thepace for later mhra council members and presidents tooccupy prestigious and important positions in tourismboth locally and abroad. besides its members being nom-inated on boards and councils, the mhra has also beeninstrumental in carrying out studies and surveys and incontributing to and disseminating schemes offered locally.

but what do the people outside the mhra think? Wespoke to some exponents in other bodies and associationsthat help keep malta’s tourism and economy ticking over.

Alan Camilleri executive Chairman, Maltaenterprise

“recognising the importance of the tourism industryfor the country’s economy, malta enterprise provideswide-ranging assistance to facilitate further growth andsupport operators in the industry. The mhra has alwaysbeen a valuable partner in this regard, endowing us withan insight into the particular needs of the tourism indus-try and the challenges it is facing, which in turn enablesus to provide a better service to the tourism industry.”

Adrian Mamo executive director, ITS

“iTs believes that the relationship between the mhraand the institute is of vital importance, particularly toidentify which competencies and skills tomorrow’s tour -ism and hospitality personnel need to possess. This is why

iTs is consolidating its relationship with the mhra, a re-lationship which has always been special. The mhra hasalways provided us with the necessary support to ensurethat our students are developed to the required standards.”

Sonny Portelli Chairman, Malta Council forSocial and economic development

“since the mCesD’s foundation, the mhra has par-ticipated very actively in its work. Together with the othermembers of the mCesD, it regularly highlights the gen-eral concerns and aspirations of civil society in malta, aswell as the particular challenges faced by its members.Through its research and articulate debate, the mhrahas also ensured the right atmosphere for the continuinggrowth of the tourism industry in malta. going forward,the mhra will undoubtedly maintain its focus on theattainment of its objectives and will continue to con-tribute to the growth of social dialogue in malta.”

Josef Formosa Gauci Ceo, Malta Tourismauthority

“The mhra is, undoubtedly, one of the key players inour islands’ tourism industry. The relationship betweenthe mTa and the mhra has gone from strength tostrength over the past few years and clearly exemplifieshow constant, ongoing collaboration and co-operationbetween stakeholders in any sector can greatly benefit theindustry as a whole. The road ahead in tourism, the worldover, appears to be rife with challenges and, possibly, ob-stacles. The global economy is under serious duresswhilst the economic crises raging through europe, ourprincipal tourism source market, will undoubtedly leavetheir mark. The only way in which we can rise to thesechallenges and weather storms that may come our way,is for us, all the stakeholders in one of malta’s essentialindustries, to work together and collaborate fully, wher-ever and however possible, towards achieving commongoals. i trust that this level of close co-operation betweentourism stakeholders will continue to persist and reapdividends for our country’s tourism sector.”

Nadia Theuma director, Institute forTourism, Travel and Culture

“The mhra is instrumental in enhancing the ad-vancement of hospitality in malta, in particular theneed for continued development of persons engaged atall levels within the sector. The mhra has been sup-portive of our initiatives, especially our efforts to fur-ther develop higher education in tourism, travel andculture. i look forward to our continued collaboration.”

Claudio Farrugia Ceo, employment andTraining Corporation

“The employment and Training Corporation has beencooperating closely with the mhra for a number of yearsto promote further training and employment in thetourism sector. Through its relentless work the mhrahas always encouraged its members to innovate and im-prove the quality and level of service to market malta asthe prime mediterranean tourist destination. This in turnhas improved the quality of work and career prospectsthat people employed in this vital sector now enjoy. Welook forward to more cooperation and wish the mhraeven more success in the future.”

Top from le:Alan CamilleriAdrian MamoSonny Portelli

Bottom from le:Josef Formosa GauciNadia eumaClaudio Farrugia

58 / THE ROAd AHEAd / MHRA

MHRA & THE EU

Vanni Xuereb Head, Malta-EU MEUSAC

“In seeking to reap the maximum benefits of EUmembership, the Government actively seeks the viewsof the Social Partners and Civil Society on new EU-wide legislative proposals. The MHRA, which had par-ticipated in the MEUSAC process during the accessionnegotiations, is committed to the consultation processwithin MEUSAC besides also collaborating withMEUSAC on a num-ber of EU-related ini-tiatives. Furthermore,through the MaltaBusiness Bureau, theMHRA has affordedMEUSAC the possibil-ity to collaborate onnew and creative ini-tiatives that enhancethe sector’s potential inthe European context.”

Joe Tanti CEO, MBB

“As the leading representative of the hospitality sec-tor on the island, the MHRA plays a pivotal role in thetourism industry. Throughout these years, it has beena pleasure to work closely with the MHRA on varioustourism initiatives for the benefit of the industry andmore recently on the EU-related front in my capacityas CEO of the Malta Business Bureau.

“MBB, as the joint-EU Advisory and Support Officeof the MHRA and the Malta Chamber of Commerce,Enterprise and Industry, is there to make sure that thevoice of local businesses is well heard in European fora.

“On behalf of the MHRA, MBB is in direct regularliaison with HOTREC on all legislative, policy andfunding issues which have a direct impact on tourism.Most importantly, MBB is continuously driving thesector’s business interests as there is need to make surethat the legislative agenda of the EU is better-tuned tothe specific sensitivities of the tourism sector.”

The MHRA’s participation in the internationalfield has propelled it to dedicate some of its re-sources to strengthening such an internationallink. Its affiliation with HOTREC – a Europeanassociation grouping all the EU’s hotel andrestaurant pressure groups – and its importantcontribution is endorsed by the president ofHOTREC in one of this publication’s messages.

Recognition is also forthcoming from TheWorld Tourism Organisation (UNWTO/OMT)which is a specialised agency of the United Na-tions and the leading international organisationin the field of tourism. It serves as a global forumfor tourism policy issues and a practical sourceof tourism know-how.

Besides these foreign affiliations and closecooperation agreements, the MHRA is also in-volved in the Malta Business Bureau (MBB)and the Malta-EU Steering and Action Com-mittee (MEUSAC).

MBB was founded in October 1996. Repre-senting the Malta Chamber of Commerce, En-terprise and Industry and the Malta Hotels andRestaurants Association in Malta and Brussels,it liaises directly with local and European coun-terparts. MEUSAC has three main areas of ac-tivities: consultation, information and research,and support on EU programmes and funding.

The role that the MHRA plays in tourism is

acknowledged by various organisations

and industry leaders. Especially since

Malta’s accession to the EU, the MHRA

has been very active in the international

field, making its valid contribution to poli-

cies and decisions that affect the local

stakeholders and the country in general.

TheeU

link

Documents

The road ahead--MHRA