MHRA, operators at odds on recovery rate of conferences sector

Operators in the industry, speaking on condition of anonymity, said that the government failed to prepare a strategy for the industry's post-pandemic recovery

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Malta has no plan for the conference and events sector and operators have been left to flounder amid rising costs, lower tourist numbers and an revitalised competition abroad, BusinessToday has learnt.

Operators in the industry, speaking on condition of anonymity, said that the government failed to prepare a strategy for the industry's post-pandemic recovery.

"The sector today has been overtaken by numerous other destinations, because the government's tourism strategy has once again reverted to attracting mass holiday makers, who hardly spend money here, rather than attracting high-spending tourists," one source said.

However, Tony Zahra, president of the Malta Hotels and Restaurants Association, insists the industry has performed better than expected this past winter and is on the road to recovery.

Operators insist that whereas Malta - pre-COVID - provided a very attractive package for the conference and events sector, the rising costs of products and services was now making it impossible for local operators to compete with their counterparts in destinations like Spain, Cyprus, Greece, Portugal and France.

But the issue of biggest concern among local MICE (meetings, incentives, conferences and events) operators, is the demise of Air Malta and the government's stated strategy for the national airline.

"Our sector depends on airlines who allow group bookings and who are flexible with us when it comes to split bookings, late bookings and other issues," one operator said. "We can no longer depend on Air Malta, especially as it continues to cut, or lower the frequency of flights to and from key markets like France and Belgium."

Sources told BusinessToday that government said to be pinning their hope on Wizz Air being able to make up for Air Malta's shortcomings.  But, while Wizz Air does provide a solid connection to the Polish market, replacing Air Malta is a long way in the future.

Another roadblock on the road to recovery for conference and events operators in Malta are the rising costs of many products and services, particularly the prices being quoted by local hotels, themselves trying to recover post-pandemic.

"A hotel recently quoted me €480 per night per person for a group of around 80 attendees," one operator said. "Of course I lost that group who chose, instead, to go to Spain, where they were quoted €250 per night per person by a hotel of the same standards and calibre."

Another operator complained about the rising cost of food and beverages for events, citing prices starting at €75 per person today, up from an average of under €50 per person pre-COVID.

"A major venue recently quoted me €250 per person for the venue, minimal audio-visual setup and lunch, featuring chicken thigh as the main course," the operator said. "How can I convince my clients Malta offers the best value for money with those prices?"

Rising costs have also been registered in transportation, with a regular airport transfer, which in 2019 averaged €180 per coach, now costing €250 each way.

Operators have also complained about the constant construction work all over the island, saying this was not only turning away potential customers, but was also turning any confirmed group visits to Malta into a bitter experience, with visitors having to navigate building sites, upturned pavements and heavy vehicles even in centres like Valletta.

Positive winter

When contacted by BusinessToday, Tony Zahra, president of the Malta Hotels and Restaurants Association, dismissed claims that the industry was floundering and said it was, in fact, recovering at a faster rate than had been anticipated.

"We knew recovery in this sector would be slower, especially because lead times in this business were quite long, often between 12 and 36 months," he said. "But these lead times have been reduced as the world emerged from COVID, and the Maltese sector enjoyed a positive winter."

Zahra said that 2023 promises to be equally positive for the sector, and insisted Malta would retain its reputation as a favourable and competitive destination.

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