Looking for the Holy Grail of Asian tourism

Around the world, airlines, hotels and luxury businesses are bracing for the return of tens of millions of tourists and their hundreds of billions of euros – though experts suggested that the revival could take months to fully gather pace.

Many are basing their hope of a revival in the Asian market. During the Covid years, China had strictly limited outbound travel in an effort to prevent its residents from returning with the virus. The pandemic took a heavy toll on Asian outbound tourism, which contributed roughly 4.5% to Hong Kong’s economy in 2018, with a majority of 65 million coming from mainland China. In 2019, before the Coronavirus pandemic, 155 million Chinese people travelled abroad and now experts project a solid recovery in the first quarter of 2023 and mass return of tourism in the second. The lifting of quarantine rules effectively opened the door for many Chinese to go abroad for the first time since borders were slammed shut three years ago. Concerns about travellers from China were understandable, given the scale of the Covid outbreak.

There is a lot of pent-up demand from the Chinese to travel but the problem is how agile is Malta’s tourist ministry to accommodate them by issuing visas and creating extra flight connectivity. Can Malta stand to gain? It is blessed as one of the sunniest European destinations with a good climate all year round, making it an ideal location for a short getaway. An island steeped in history; Malta is an ideal short-haul destination claims the Malta Hotels and Restaurants Association (MHRA). MHRA believes that a budgetary measure to subsidise energy and food costs was necessary to ensure stable cost of living and this augurs well for the continued good health of the tourism and hospitality sector. With reference to the product,

“In a cost-cutting move, the airline has hived off baggage and ground handling services and started to drop unprofitable routes. Rumours has it that some employees will be transferred to the civil service at same pay while others hit the jackpot landing generous severance pay – all costing almost €200m.”

MHRA notes that once again reference is being made to the restructuring of the Tourism Zones Foundation for more effective embellishment and for the regeneration of tourism designated areas across Malta and Gozo.

Obviously, many have written to the tourism ministry to ensure a better upkeep and cleanliness level of these zones. So far, we are still nailed to a colonial cross, how to run the sector-old habits die hard. Unequivocally, the mantra at MTA mainly focuses on a tried and tested safe policy of attracting as many low-spending tourists as possible. Numbers are expected to reach three million visitors this year. No studies have ever surfaced over the years funded by hotel lobby groups to discover the actual value added (GVA) that the sector contributes to the economy after deducting infrastructural costs, environmental damage and various State subsidies to low-cost airlines. Looking back to the origin of tourism in the early 1960s, such a nascent tourist sector was warmly welcomed and supported by politicians as a pivotal means how to balance annual budgets and create lucrative jobs for hundreds of Illuminati with Air Malta.

As recently advised by DBRS (a rating agency) caution is in short supply as it reminds us how tourism can be a rather volatile industry. Now, that two years of pandemic shutdowns are over, the finance minister wants to catch up on lost revenue. Castille now concocted a highly vaulted Holy Grail to attract Asian traffic. Success depends on improving connectivity. The Shift News reminds us that in 2018, the government had registered, Malta MedAir (see picture), a brain child set up by former minister Konrad Mizzi in partnership with Ryanair to form a completely new entity. Could this be the key solution to solve the problem faced by Air Malta of regular delays on its flight schedules? No official reason was given by management to explain why the service has suffered so much degradation. Air Malta’s COO has attributed some of the recent flight delays to the shortage of aircraft being faced by the whole industry, caused by technical problems as a result of the length of time planes spent idle during the Covid-19 pandemic. All this compounds the issue that one cannot rely on Air Malta with its under-capitalized structure, chronic losses and having just eight leased aircraft at its disposal. Its bloated crew and pilots’ overheads have always been a reflection of political interference from those who pull strings from Castille. One reads that the company will be wound up since after many attempts failed to obtain approval from the Commission to inject state aid. On the bright side, prospects for this year look good and provided Europe avoids the pangs of a mild recession, there is a feeling of socalled revenge tourism with millions of travellers still having unspent cash in the drawer; saved during two years of restrictions. Quoting, again The Shift News it is reliably informed that a backup plan has been hatched on replacing the national airline with a properly funded national airline. The Finance minister hinted on discussions concerning the possibility that Air Malta could be replaced by another flag carrier, while with a smile insisted that the airline's restructuring programme is on track.

In a cost-cutting move, the airline has hived off baggage and ground handling services and started to drop unprofitable routes. Rumours has it that some employees will be transferred to the civil service at same pay while others hit the jackpot landing generous severance pay – all costing almost €200m. Three years ago, the ex-Prime Minister Joseph Muscat said at a political activity that Malta will attract three million tourists. In fact, the total figures were close at 2.8 million in 2019 including cruise liner visitors. Muscat was enthusiastic about the future prospects, projecting that soon we should start attracting tourists who spend €5,000 a night in super luxury hotels which government urged developers to build. Was he anticipating millionaire Asian visitors who are expected to flood Europe this year? Notice the starting gun is about to be fired on the anticipation of building pristine hotel towers licensed to DB, the massive Villa Rosa complex, Comino bungalows and six luxury towers by Corinthia. A reality check reveals how last year the island attracted a lower quality visitor booking competitively priced Airbnb accommodation. Is this a bad sign for millions splashed by developers on highend tourist accommodations? It is an enigma which is built on a flawed creed that only those who risk millions succeed. Finally, one waits with bated breath for the Joseph Muscat’s vision of Malta to be upgraded to a Monaco-style destination, welcoming gatecrashing rich Asian travellers.