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NEWS | Wednesday, 07 January 2009

Falling pound spells trouble for Malta’s tourism industry


It will be a long hot summer for the Maltese tourism business this year, as more British holidaymakers are being exhorted to choose non-eurozone countries to spend their holidays in.
As the euro gains strength against the pound, more British tourists could be choosing cheaper destinations, or any holiday deal that will simply give them value-for-money.
And yet, Malta features nowhere in either the bargain bin, or for its value-added charm.
A trendspotting report claims that while more British tourists are expected to choose destinations outside of Europe, they are nonetheless likely to return to countries like Greece, Cyprus and Spain.
So say the Foreign & Commonwealth Office (FCO) and ABTA, the British Travel Association, who also predict that Turkey, Egypt and Mexico will see a significant increase in British visitors in 2009 as bookings show that holidaymakers are favouring destinations that do not use the euro.
The FCO & ABTA 2009 Travel Trends Report shows the number of Brits going to Egypt has risen by 38% in the last year, and visitors to Turkey have increased by 32%. Last summer, according to Ascent-MI, Mexico saw an increase of 23%.
The report predicts a growth in medium and long haul destinations such as Turkey, Egypt, and the Spanish Caribbean – describing them as good value destinations.
As the report remarks, value for money will be a key theme in 2009, but so will ‘added value’. High end operators say customers are wanting more for their money, so rather than trading down, they want free room upgrades, free child places and lounge access.
“2009 will bring more difficult times,” Air Malta chairman Lawrence Zammit said on TVM’s Reporter, to be broadcast tomorrow. “Our markets being international markets, England especially, are passing through enormous economic difficulties.”
But as the euro strengthens against the pound, countries like South Africa, New Zealand and Australia will also look like good options, especially if fuel prices remain low.
And although the rate of the euro is also providing anxiety, Spain, France, Italy and Greece are destinations will continue to provide reasons to go.
“They are so popular that even decreases will see them remain at the top of the charts,” the Travel Trends Report said.
The UK tourist market remains Malta’s biggest. Numbers were down 1% between January and April but they rebounded strongly in May, with the number of visitors to Malta rising by 15.2% over the same month in 2007.
Ascent-MI, which produces the Leisure Travel Monitor, has been monitoring bookings taken for 2009, and revealed the top performing destinations so far in terms of bookings taken through travel agents and tour operators as: Spain, Greece, USA, Turkey, the Caribbean, Egypt, Cyprus, Mexico, France, and Portugal.
A consumer survey commissioned by the FCO and carried out by YouGov in November 2009 found that 11% of 18-24 year olds don’t care where they go on holiday as long as they get the same sun and sand as they would in the Mediterranean. This compares with only a 5% national average.
The pound fell by more than a third against the euro since July, meaning eurozone holidays have now become more expensive for British holidaymakers.
Iceland is instead touted as the big bargain, since the country’s financial collapse enabled the pound to become a third stronger than last year. The island was chosen by the Association of British Travel Agents in its annual “hotspots” list for 2009.

 


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