1. INTRODUCTION 2. DETAILS ON THE BUSINESS

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1 1. INTRODUCTION 1.1 The purpose of the Tour Operators/Travel Agents Survey was to obtain detailed information on the travelling patterns of the local population and the demand for travel services, mainly from a land-use perspective. The Survey consisted of 29 questions divided into 4 sections, namely Details on the Business, Inbound Tourism, Outbound Tourism and The Tourism and Recreation Product. Issues such as itineraries and duration of organised tours, demand for facilities, visitation and expenditure patterns, product evaluation and marketing channels were thus raised. 1.2 The two main sections of the questionnaire, that is inbound and outbound tourism, were structured in such a way as to allow respondents to skip particular questions. Entrepreneurs were in fact adviced to complete certain sections only if they operated an inbound or outbound department within their company. This distinction was deemed necessary since not all companies organised tours overseas or acted as local handling agents organising itineraries for foreign operators` clients. 1.3 In total, this postal survey was distributed to 213 tour operators and travel agents in Summer Managing directors or owners of such businesses were asked to return the completed questionnaire by mail. Regrettably however, only 47 entrepreneurs provided valid feedback, that is a meagre 22%, with a particular respondent actually stating that his travel agency is currently not in operation. Such a figure is quite disappointing, considering that the survey was sent to companies and not individuals. 2. DETAILS ON THE BUSINESS 2.1 The majority of respondents are mainly travel agents (32 out of 47, that is 68%), with such companies involved in inbound operations (47%), local excursion operators (32%) and as destination management companies (26%). An additional 21 companies (45%) on the other hand concentrate on outbound operations, that is on selling overseas destinations to local holidaymakers. 2.2 Companies operate mainly from Sliema (28%), although the St Julian`s/Paceville area (15%) is also quite popular. The capital city of Valletta and Msida also attract several companies (11% and 6% respectively), closely followed by other towns like Floriana, Qormi and Bugibba (4% each). Other localities from which tour operators and travel agents operate include B`Kara, Hamrun, San Gwann, Mosta, B`Bugia, Mqabba and Wardija (2% each). 2.3 The 47 tour operators and travel agents employ 505 full-timers, that is an average of 10.8 employees each. Furthermore, an additional 293 persons are employed as part-timers with the above companies, an average of 6.2 employees each. Two of these companies seem to be considerably large, employing over 100 full-timers each, with another company actually PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 1

2 employing 200 part-timers. The majority however are small companies, with most businesses employing less than 5 persons. Locality Others Bugibba Qormi Floriana Msida Valletta St Julian`s Sliema Fig. 1: Location of business (tour operator/travel agency) 2.4 Companies employ part-timers mainly in the summer season (19 out of 47, that is 40%), although other part-timers are also sought in the Christmas and Easter periods (9% and 4% respectively). Most respondents, however, find plenty of difficulties to recruit personnel due to shortages. Indeed, 47% of respondents (22 out of 47) admit finding difficulties in employing the right staff in the right jobs, with only 34% happy with the current employment situation. 2.5 Personnel communicating in foreign languages seems to be the main problem area, according to 19% of respondents. Respondents however also find it difficult to employ responsible travel and ticketing staff (13%), travel consultants/representatives (9%) and sales managers (4%). Furthermore, 4% of respondents stated that they find problems employing personnel in all types of jobs Foreign language speakers Ticketing staff Travel reps Sales managers All types of jobs Job types Fig. 2: Job types where entrepreneurs find difficulties to employ staff PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 2

3 3. INBOUND TOURISM respondents out of the 47 operators (that is 60%) have an inbound department within their company. The majority, that is 24 respondents (86% of inbound travel organisers), organise full and half day tours besides trips to Gozo for foreigners, whilst 22 include trips on pleasure cruises as part of their itineraries. 16 respondents on the other hand are involved in conferences (57% of inbound travel organisers), with an additional 15 organising incentive trips. Incentive trips Conferences Itineraries Trips on pleasure cruises Trips to Gozo Half day tours Full day tours No. of respondents Fig.3: Itineraries organised by local operators 3.2 People in the trade rate Malta`s conference facilities mainly as good, although most require modernisation (17 respondents, that is 61% of inbound travel organisers). Two respondents on the other hand asserted that the service offered at hotels is not professional, whilst another two asserted that Malta`s conference facilities were poor. Only one respondent seemed happy with the current offer and subsequently rated the Islands` conference facilities as excellent. 3.3 Respondents were also asked to identify the most popular localities chosen by tourists booking their tours. Rabat and Mdina seem to be by far the most popular localities with tourists (24 respondents, that is 86% of respondents handling inbound travel), followed by the Gozitan localities of Marsalforn and Xlendi (15 respondents, that is 54%). Sliema is another well frequented town according to 13 respondents, whilst Comino and St Julian`s/Paceville also rate favourably according to 11 respondents. 3.4 M`Scala/M`Xlokk/B`Bugia and Zurrieq are other popular sites according to 9 and 8 respondents respectively, with the capital city of Valletta surprisingly listed by only 7 respondents ( 25% of respondents handling inbound travel). Other popular localities mentioned by seven respondents include Bugibba/St Paul`s Bay and Mellieha. PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 3

4 Locality Mellieha St Paul`s Bay Valletta Zurrieq M`Scala/M`Xlokk/B`Bugia St Julian`s Comino Sliema M`forn/Xlendi Rabat/Mdina of respondents handling inbound travel Fig. 4: Most popular localities according to tourists booking local operators` tours 3.5 Historical sites are by far the attractions that appeal mostly to the operators` clients, according to 79% of respondents organising inbound travel. Furthermore, 50% stated that foreigners opt mainly to sunbathe/swim in the local beaches, with an additional 46% each asserting that museums and places of character attracted the attention of their clients. The appeal of shopping centres/areas and the countryside is on the other hand smaller, since only 21% and 18% respectively indicated such options % of inbound travel organisers Historical sites Sunbathe on local beaches Museums Places of character Shopping centres/areas Countryside Attractions Fig. 5: Local attractions that appeal to operators` clients N.B. Respondents were given the opportunity to indicate up to 3 options 3.6 Mdina and Valletta (14 and 13 respondents respectively) are definitely the tourists` favourite localities due to their variety of tourist attractions (museums, historical sites, places of character and shopping areas, as indicated above in paragraph 3.5). Also popular are Sliema, PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 4

5 Gozo and Golden Bay (5 respondents each), mainly for their importance in terms of shopping, history/countryside and beaches respectively. Other localities mentioned include Dingli, Buskett (countryside), Tarxien, Rabat (history), St Julian`s (shopping/entertainment), Comino and Mellieha ((beaches) 3.7 From the feedback received from their clients, operators suggested that there are enough tourists visiting St Julian`s/Paceville, Mdina (20 respondents each, that is 71% of respondents handling inbound travel), Marsalforn, Xlendi (18 respondents each), Rabat (17 respondents), Sliema, Comino (16 respondents each, or 57% of respondents handling inbound travel), and Bugibba/St Paul`s Bay (15 respondents) in the peak months. Mellieha and Zurrieq (10 and 8 respondents each) are other localities where the majority believe that the carrying capacity has been reached, whilst M`Scala/M`Xlokk/B`Bugia (3 respondents, or 11%) are the only localities where tourism can still be developed according to the operators` clients. Overall, however, twelve foreigners believe that the carrying capacity of the Maltese Islands has been reached in the peak season, contrary to the seven respondents that argued otherwise. Locality St Julian`s Mdina Xlendi M`Forn Rabat Sliema Comino St Paul`s Bay Mellieha Zurrieq M`Scala/M`Xlokk/B`Bugia Maltese Islands 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No reply Not sure No Yes Fig. 6: Are there enough tourists visiting the following localities in the peak months? N.B. s exclude those respondents from companies that do not handle inbound travel 3.8 The reasons for suggesting that several localities` carrying capacity has been reached are various. Congestion/overcrowding in historical and scenic sites and inadequate value for money/high costs are the two main reasons for the above, with high taxation, lack of open spaces and parking facilities, inadequate beach facilities, continuous construction works and too much tourist accommodation in particular resorts also mentioned. Interesting is the fact that a particular respondent argued that Marsalforn`s carrying capacity has not yet been reached because retail outlets in this resort do not offer commisions to guides/drivers and subsequently, such a tourist centre is left out of many guided tours. PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 5

6 3.9 It seems clear that the UK and German markets provide local operators with the highest percentage share of business. Two respondents rated the UK market as providing over 90% of their overall business, with the average figure for all operators being in the region of 37%. The German market also registers some high figures, with the average being 34%, whilst the third best source is the Dutch market with an average of 17%. This is indeed quite surprising, since the Dutch market ranks fifth and not third in terms of overall yearly tourist arrivals by nationality The Dutch market is closely followed by the Russian, French and Italian markets, with an average of 15%, 13% and 12% respectively. The Austrian market comes next with an average of 10% business share, whilst the Scandinavian and Swiss markets provide for 9% each of the overall business and the Belgian and US markets for 8% and 2% respectively. Other countries, mainly from the former Eastern block and the Middle East, were also mentioned, although business from these countries is quite negligible Surprisingly, respondents overall asserted that there are no particular differences in the spending patterns of tourists of the same nationality visiting the Islands in different seasons. Indeed, the expenditure patterns of the majority of British (36%), German (43%), French (36%) and Dutch (46%) tourists do not vary from one tourist season to the other. It is only from the Italian (54%) and Scandinavian (25%) markets that the tourist spend increases in a particular season, that is the summer months, although expenditure is also relatively high in the shoulder months as regards the German (32%) and Dutch (14%) markets. Expenditure in summer by British tourists is also quite high at 18%. Scandinavian Dutch Nationality French Italians Germans British No difference Summer Shoulder Winter Fig. 7: Are there any particular differences in spending patterns of tourists of the same nationality visiting the Islands in different seasons? N.B. s exclude those respondents from companies that do not handle inbound travel PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 6

7 4. OUTBOUND TOURISM respondents provided feedback on their outbound activities, that is 66% of total respondents. Out of these 31 respondents, 25 suggested that the most popular destination with Maltese people travelling overseas is England (81%), with Italy (77%) and Sicily (68%) following closely. Tunisia is the next most popular destination (55%), with other well visited destinations including Spain (42%), the United States (39%), Turkey (32%), France (26%) and Germany (23%). Other less popular destinations include Holland, Scotland, Portugal, Austria and Russia. Destination Germany France Turkey United States Spain Tunisia Sicily Italy England Fig. 8: Most popular destinations with Maltese people travelling overseas N.B. Only the most popular destinations are graphically represented 4.2 Maltese tend to choose such countries because they are traditional destinations but especially because of favourable prices. 68% asserted that their clients choose destinations because they are cheap, whilst 58% suggested that certain countries are given preference because they are traditional destinations. 15 respondents (48%) on the other hand opt for destinations where they encounter no language problems, whilst an additional 29% visit those destinations that have various cultural attractions. The natural environment, scenic attractions, religious appeal, shopping and entertainment sites are other motives attracting Maltese nationals to specific destinations. 4.3 The summer months are definitely the most popular period chosen by Maltese to travel abroad, with 23 respondents (74%) listing such an option. Christmas and Easter are also favourite periods of the year for travelling overseas according to 58% and 55% of respondents, whilst 45% believe that the January-March period comes next due to the attractive skiing option. A particular respondents on the other hand stated that his clients book mainly in the months when specialised trade fairs are organised around Europe. PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 7

8 Cheap Traditional destinations No language problems Cultural attractions Scenic attractions Environment well kept Reason Fig. 9: Reasons why Maltese choose particular destinations N.B. Only the main reasons are graphically represented 4.4 An organised tour on half board basis and individual (not group) arrangements are by far the favourite options for travelling overseas according to 58% (each option) of respondents. Flight only is another popular way of making travel arrangements, attracting 45% of respondents, whilst 23% each asserted that their clients book organised tours on a full board and bed/breakfast basis Summer Christmas Easter Jan-Mar for skiing Trade Fair periods Season Fig. 10: Favourite periods of the year that the Maltese choose for travelling overseas PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 8

9 5. THE TOURISM AND RECREATION PRODUCT 5.1 The majority of respondents feel that new facilities need to be developed in order to improve the tourism and recreation facilities available in their business`s locality and/or sector of operation. Indeed, 25 operators, that is 53% of the total respondents, suggested that a number of improvements are necessary, with a mere 15% happy with the current facilities and the rest preferring not to answer such a question. 5.2 An improved transportation system, coupled with better roads and more parking areas, are a must according to 13 operators, that is 28% of total respondents. Better landscaping, a cleaner environment and attractive green areas/national parks are instigated by an additional 15% of respondents, with improved beach facilities also identified as necessary by a number of operators. Furthermore, better entertainment and conference facilities are also deemed as necessary by 9% of respondents, with others also mentioning the need to train catering staff and the importance of proper town planning. 5.3 The majority of respondents, that is 83%, highlight the fact that there is too much building activity in tourist areas, whilst 72% feel that the tourist localities are noisy and dirty. 53% of respondents also agree that the environment has suffered due to tourism development, with only 28% stating otherwise. Operators however also state that tourism is not to blame for the Islands` parking problems (only 21% disagree with the above), with 43% also asserting that tourism has positively enhanced Malta`s image and character. 66% of respondents on the other hand disagree with the statement that Malta has enough quality tourist attractions, in the process highlighting the fact that major improvements are needed in this area of tourism activity. Malta has enough quality attractions Tourism is not to blame for parking problems Tourism positively enhanced Malta`s image Dirty/noisy tourist localities No reply Don`t know Disagree Agree Too much building activity in tourist areas Environment suffered due to tourism Fig 11: Respondents` views on tourism related activities PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 9

10 5.4 Direct mail and tourism trade advertising are the two main types of marketing engaged in by operators when selling their tours. The above two methods attract 30 and 27 respondents respectively, that is 64% and 57% of operators, closely followed by consumer advertising with 49%. Other popular types of marketing include TV/radio advertising and promotional offers (32% and 30% respectively), whilst relatively new channels such as the Internet are amongst the least attractive since they are used by a meagre 19%. Other types of marketing engaged in by operators include personal contact and information leaflets. 5.5 It seems evident that consumer advertising and direct mail are the most sucessful types of marketing for tour operators and travel agents. Tourism trade advertising and TV/radio advertising are also rated quite positively by respondents, although promotional offers, information leaflets and especially the Internet do not seem to rank among the favourite types of marketing in the tourism sector. The importance of personal contact is however also stressed by certain operators Direct mail Trade advertising Consumer advertising TV/radio advertising Promotional offers Internet Type of marketing Fig.12: Type of marketing that respondents engage in when selling tours N.B. Only the main types of marketing are graphically represented 5.6 Moreover, 47% of respondents asserted that their company caters for a particular special interest/niche market. 9 operators, that is 19% of total respondents, handle incentive and business groups, with an additional 6% interested in the conference sector. Other operators on the other hand specialise in sports travel and the young/student generation (6% each), senior citizens (4%), honeymoon packages, travel from the US, Australia and Africa, and specific European markets. PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 10

11 6. COMMENTS AND CONCLUSIONS 6.1 Local tour operators have experienced a steady increase in outbound tourism even though the Maltese are becoming more discerning in the choice of their next destination, some even seeking tailor-made packages. Indeed, the Maltese are nowadays even more attracted to other destinations since foreign countries have upgraded their product and are offering wider opportunities and more value for money. 6.2 Many agree however that Malta is overpriced and overdeveloped, with some stressing the need for more planning and development control in order to curb the prevailing laissez faire attitude. Additional attractions are needed to improve the overall product, especially in areas other than Bugibba and Paceville, whilst a proper terminal is needed in the Grand Harbour to cater for cruise passengers. This, according to many, is indispensable if the hub concept is to be promoted. 6.3 Not enough is being done to identify (and satisfy) the needs of existing tourists. Many respondents are preoccupied about the shabby and dirty state of the country, besides highlighting the fact that tourists are grossly overcharged by certain establishments around the Islands. The above, together with unprofessional tourist brochures, commissions to guides, a lack of greenery and environmental eyesores, are severely harming the industry and definitely portraying a negative image of the Maltese Islands. Indeed, many agree that the product is not justifying the price charged. 6.4 Certain respondents suggest that a building moratorium would be appropriate in tourist areas during the summer season, as happens in other resorts around Europe. Law enforcement should also be stepped up, with tourist wardens seen as a possible solution especially in the main resorts. Furthermore, a particular respondents also stated that direct taxation collected from the leisure industry should be dedicated to the general upkeep of our Islands, in particular the protection/embellishment of the natural environment. 6.5 Other conclusions could also be derived from the analysis of the survey questions: There is a concentration of tour operators and travel agents in the North Harbours area local plan (around 50%), with the capital city of Valletta hosting an additional 11%. Most of the companies are small family run businesses, although there are a couple of large operators employing over 100 full-timers each. The number of part-timers employed by tour operators and travel agents is also quite high, with a ratio of one part-timer for every two full-timers. Part-timers are employed mainly in the summer season, although respondents complain about several difficulties they face to recruit personnel (especially personnel communicating in foreign languages). PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 11

12 Over 80% of operators that have an inbound department organise full/half day tours and trips on pleasure cruises. Around 60% are also involved in the organisation of conferences, with the majority rating Malta`s conference facilities as good but requiring modernisation. Rabat and Mdina (in the North West local plan) are the most popular localities chosen by tourists booking tours (around 85%), followed by localities in Gozo and the North Harbours. The southern localities of M`Scala, M`Xlokk, B`Bugia and Zurrieq are also quite popular, although surprisingly only 25% identified Valletta and the resort villages of Mellieha and St Paul`s Bay as popular with tourists. This shows that the product in these areas needs to be improved upon (it should be noted however that the survey was carried out before the commencement of the Bugibba upgrading project). Furthermore, the operators` clients are also attracted to Comino, Golden Bay and Ghadira (as regards beaches) and Buskett/Dingli (countryside localities). The operators` clients (around 80%) are attracted mainly to historical sites around the Maltese Islands, although beaches, museums and places of character are other local attractions that are viewed favourably by foreigners. The majority of foreigners (twelve against seven) asserted that the carrying capacity of the Maltese Islands has been reached in the peak season. Most foreigners also believe that the carrying capacity of several local cities and towns predominantly situated in the North West, North Harbours and Gozo local plan areas (such as Mdina, Rabat, Xlendi, Sliema, Comino and St Paul`s Bay) has also been reached. The main reasons for the above are congestion/overcrowding in historical and scenic sites, too much tourist accommodation and inadequate value for money/high costs. Respondents state that only areas such as B`Bugia and M`Scala, and to a certain extent Zurrieq (mainly situated in Malta South and M`Xlokk local plan areas), can still be developed from a touristic perspective. The UK, German and Dutch markets provide local operators with the highest percentage share of business. There are hardly any differences however in the spending patterns of tourists of the same nationality visiting the Islands in different seasons. The Maltese travel overseas mainly in the summer months, although Christmas and Easter are also popular periods for holiday making. Besides their innate desire to travel, most Maltese opt to travel to England, Italy, Sicily and Tunisia (in order of preference) mainly due to the price factor but also because they prefer traditional destinations. Over 50% of respondents specifically suggested that their business`s locality and/or sector of operation need additional tourism, recreation and infrastructural facilities ranging from an improved transportation system to better roads and additional parking lots. Other facilities proposed by respondents include national parks, beach facilities and better landscaping. PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 12

13 The majority of respondents asserted that tourists constantly complain about dirty and noisy roads resulting from incessant building activity. Indeed, over 50% agreed that the environment has suffered due to tourism development, although they also stressed the fact that tourism is not to blame for the Islands` parking problems. Furthermore, most respondents highlighted the urgent need for better quality tourist attractions to improve the overall product. PLANNING DIRECTORATE: STRATEGIC PLANNING UNIT Page 13