When Mario de Marco took over the tourism portfolio in April he was lucky enough to enter the sector at a time of growth.
It is no secret that the figures for 2007 and the first half of 2008 were positive primarily because of the advent of low cost carriers (LCC). Low-cost airlines provided increased inbound seating capacity, new internet marketing techniques and a wider network of flights to the island.
LCCs were a missing link in the tourism sector. The breakthrough was welcome and provided a breath of fresh air in a stagnating environment.
But the positive impact of LCCs was not going to last for too long unless government took corrective measures to bolster product Malta.
That was always going to be the case but it has been rendered much more urgent with the global economic downturn.
Mario de Marco is fully aware of the challenges we face. In the few months he has headed the sector he has struck up a good working relationship with the operators. He is also on the ball, having shown his true colours when the country was paralysed by the transport strike.
The Parliamentary Secretary was on the ground co-ordinating the efforts to get tourists out of Malta International Airport when taxis blocked access to it.
That may have been a litmus test for the junior minister. But what the country and the sector faces today is much more serious and problematic.
Government has realised this by voting a bigger sum for the Malta Tourism Authority in the budget.
This leader hopes that the MTA utilises the allocated funds in a diligent way to advertise the island in our core source markets. Furthermore, we expect meaningful and lasting public investment in the core tourist areas of the island.
But more money alone might not be enough. The global downturn is too big for any single entity to handle on its own. Government will need the full cooperation of all players in the sector and vice versa.
De Marco has created the necessary harmony among all the players and we believe that he has the charisma to bring them all working together.
However, what we find disturbing is his silence over the hikes in utility tariffs. Tourism operators will be hard hit by these tariffs and the new tourist tax to be introduced in 2010. At a time when competitiveness is a touch and go affair, these two major government decisions risk endangering the viability of major operators.
We expect the Parliamentary Secretary to be vocal in defending his patch, especially when he has publicly acknowledged the negative prospects for the sector in the months ahead.
How well we do in tourism may not depend solely on our efforts. But how we act, the speed with which we take corrective measures and what type of investment decisions the country takes can make a difference between a total slump and survival.
