Rebuilding tourism for the longer term

The local tourism industry has been down for 15 months. An attempt to start is now being made in the hope that the number of visitors will increase in the coming months, as the medical crisis is said to be a thing of the past. The industry is facing major challenges as demand factors generally remain outside the control of policymakers and operators.

The government has announced this inject another 20 million euros in favor of tourism. There is little doubt that it will take a kick-start to recover from the devastation it has seen over the past few months.

Tourism Secretary Clayton Bartolo claims the economy lost 2.2 billion euros in annual spending from tourism last year due to COVID-19. Without the generous government support, job losses would have been much higher.

The tourism industry lobbies welcomed the new aid package with sunny optimism. There was no shortage of well-meaning platitudes like the importance of adding “flexibility” to our plans rather than “letting go of our watch.”

An EU-wide agreement on the issue of “green” passports for vaccinated people, with which they can travel without restrictions, would undoubtedly help, once all logistical and ethical issues are resolved.

Brand partnerships with online booking platforms such as Expedia and Trivalgo should also improve the attractiveness on the supply side for those planning to spend their vacation abroad.

However, policymakers need to consider other factors to ensure that the taxpayer-funded bailout package is used wisely to ensure the best chance of success for the industry.

The strength of the economic recovery will primarily drive the post-COVID tourism recovery. The pandemic has severely damaged the economies of the countries from which Malta attracts the most visitors. The loss of jobs can mean that many Europeans forego their holidays abroad this year and, at best, spend their summer holidays in their own country.

Some countries like the UK are now better able to control the pandemic than others, which means their economies may also recover a little faster. France, Germany and Italy, other major source markets for Malta, are still grappling with the third wave of infections.

The possibility that the end of the medical crisis may last longer than expected can also heighten travelers’ concern about the health risks associated with vacationing abroad.

Island destinations are expected to recover more slowly as various governments continue to advise their citizens to avoid air travel. Malta can counter this trend by providing clear information to travelers and businesses and trying to limit the uncertainty of vacationing overseas.

The falling number of cases is a good place to start to convince potential visitors that the island is a safe tourist destination.

More can be done to restore travelers’ confidence. For example, operators need to highlight the processes they use to ensure cleanliness in their hotels and restaurants. Hotels and airlines should make it easy for vacationers to get a quick and full refund on their bookings if the medical crisis breaks out again.

While starting the tourism industry is a major priority, the reopening of Gung-Ho, which Malta carried out last summer with the long-term damage it has caused, must be avoided at all costs. The need to prevent new virus variants from entering should be a priority for policy makers.

In the meantime, they need to rethink tourism for the future. The old business model based on mass tourism is no longer feasible for a small, overpopulated island destination.

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