Low-cost Isn't Enough for Malta Tourism
The Times (Malta) | Sep. 11, 2006
The news that three major low-cost airlines - Ryanair, EasyJet and GermanWings - will be flying to Malta on a year-round basis has generally been welcomed, especially by operators in the tourist sector who have long been insisting that only by having low-cost flights can we hope to reverse the decline in tourist numbers we have been experiencing.
This could well be the case. Ryanair alone, which will start operating daily flights from London-Luton as early as October 31, estimates it would be carrying around 86,700 tourists a year to Malta on the three routes it has been granted. These, one expects, would be over and above the 1.1 million or so who currently visit us annually.
Of course, low-cost airlines do have their disadvantages compared to scheduled flights, and the ticket price may not include services and comforts to passengers, but they have certainly brought about a travel revolution.
Actually Ryanair is already advertising flights to Malta from Luton, Dublin and Pisa - the three routes it has been granted - for just one euro, excluding taxes, which brings the cost of a flight to Malta from these destinations to around Lm40, or a third of the normal price.
This should be a tremendous incentive to prospective visitors to Malta, and put the island on a par with other destinations which have experienced growth in tourist arrivals this year, rather than the two per cent drop we have had so far this year. And it is likely that what passengers save on tickets they spend on food, entertainment, car hire and other services in the receiving country.
Besides, the introduction of low-cost airlines on the scene could induce established airlines already operating here to lower their prices, or at least adopt a more flexible pricing and booking policy.
One of the arguments brought by those who have opposed the coming of low-cost airlines is that this would seriously jeopardise the future of Air Malta and maybe force established foreign airlines to stop flying to the island. The fact is, however, that established airlines have continued to operate elsewhere, where low-cost airlines have been active for years now, while there is no doubt that low-cost airlines have contributed considerably to the market's expansion, which means that the "cake" for all airlines is now bigger.
However, one should not run away with the idea that with the start of low-cost airlines' operations in Malta (one expects other routes to be opened up to low-cost airlines - God knows, there are many untapped markets in Europe and outside it which Malta could exploit), our tourist industry's woes are over. Far from it. The relatively high cost of travelling to Malta was only a part of the problems we face in this sector.
An increasing number of travellers today book plane tickets, hotel accommodation, car rentals and even excursions over the Internet, where prices are generally much cheaper than if booked through travel agents. Besides, the browser has the added advantage of comparing prices of flights, hotels and other services at a glance.
The existence of a dedicated portal for Malta holidays would thus be a tremendous boon to our tourism; Internet-advertised rates should logically be cheaper, and hotels would thus be able to offer more competitive prices. The same applies to airlines and other services.
Still, once the tourists get here, what do they find? Do we meet their expectations? Frankly, in some sectors, such as restaurants, prices are quite high, with exaggerated mark-ups on wines and spirits which do not reflect the quality of the food or the standard of the service.
Then of course there are the taxis... Several letter-writers have recounted veritable horror stories in our newspapers of blatant overcharging, which is nothing but daylight robbery. The tourists' experience becomes worse when overcharging is accompanied by bad manners.
And what about the product itself? Can we ever hope to shake off this image of a dirty, shabby, dust-laden island whose inhabitants do not seem to mind passing through litter-strewn streets (despite the recently introduced hefty fines for littering), or making their way gingerly through (very often potholed) streets marked by open construction sites?
This is where the "branding" exercise comes in. We must all feel responsible, even if we are not directly involved in tourism, for giving the best possible impression of our island. Low-cost flights are clearly not enough...