Mediterranean has work to do to maintain tourism position

Mediterranean tourism has reason to be optimistic. Although the region is likely to lose market share to upcoming destinations, especially the Asia-Pacific region, its tourist arrivals will grow as the world tourism market expands. The Euro-Med region currently has around 35% of world tourism receipts and is predicted to register an average growth of 4.8% in the near future, according to the World Tourism Organisation’s latest barometer.

However, while the acute crises of the past two years such as the threat of terrorism and health scares did not appear to have had a lasting impact on the region’s potential for growth, deep-rooted challenges, such as an ageing tourism product, a lack of diversification, overcapacity in certain accommodation categories and a failure to engage in sustainable tourism development would have to be met now in order to future-proof the industry for continued success. These were some of the key findings presented at the 1st Mediterranean World Tourism Conference, Medworld, held in Malta last week (26th & 27th February). 

Medworld, a joint initiative of IPK International, the World Travel Monitor company, and the Malta Tourism Authority, was intended as a pilot event to gauge industry interest in creating a permanent mechanism for dialogue on the challenges facing the region’s tourism. “Even though the Medworld region is far from homogenous in its approach to tourism, the conference demonstrated that there were a considerable number of common areas to address if we are to continue to be successful in our respective destinations”, said Leslie Vella, Chief Executive of the Malta Tourism Authority and Chairman of the European Travel Commission Research Group. 

Medworld is not the first attempt to create a pan-Mediterranean networking structure, but Vella sees the initiative as having a different remit from its predecessors: “Medworld is not about trying to create a ‘Mediterranean brand image’. The region is far too diverse and competitive. But this first Medworld in Malta has shown that it is possible to operate a forum in a spirit of co-opetition. Speakers have willingly shared information which could certainly help others to the same success, or to avoid the same pitfalls, in the planning and execution of their tourism strategies,” added Vella.

A recurrent theme of the conference, and an issue widespread across the industry, was that of cost-cutting to retain inbound tourism volumes. Accommodation has been subject to continual price dumping in recent years resulting in a vicious circle of spiralling prices. Cost-cutting was seen as a short-term palliative for serious, structural defects in the product. 

Several speakers focused on the need for the region to lead, not follow, in re-structuring for growth. The arrival of low-cost, low-fare airlines and the effect of direct sales channels such as the Internet and TV travel channels were challenging traditional tourism products and distribution routes, namely the package holiday and tour operators. The impact of new media was causing fragmentation of the industry and would require pro-active responses from not only traditional behemoths of the industry but also smaller, independent stakeholders. 

“The Mediterranean must take itself to the visitor, not vice-versa,” said Rolf Freitag, Chairman of IPK International. New-wave airlines had challenged the transport industry by realising that air travel should be consumer rather than supplier driven. They had captured the minds of travellers. In many ways, Mediterranean tourism faced the same challenge as that confronting network carriers. It would have to shift its stance in product development, listen carefully to consumers and communicate better with source markets, Freitag commented. 

Egypt was discussed as an example of best practice for its ability to devise new, successful tourism products. The country had seen its share of crises and had its traditional tourism product – cultural and educational travel – undermined by more innovative products and destinations, yet it had managed to develop successful offers in Red Sea resort holidays, diving and Nile cruising to revamp its tourism industry. 

At the other end of the Mediterranean, another established tourism destination seeking to update its image, the Balearic Islands, had been exploring ways to minimise the impact of unsustainable tourism numbers by experimenting with an eco-tax and tourism policy laws, but with varying success. 

These are just two examples of the kind of insights at Medworld which proved to be of great relevance to other destinations in the region. They also highlight the value of furthering opportunities for sharing experiences. “The next months will see the setting up of the infrastructure to ensure Medworld has lasting benefit and wider reach to help Mediterranean tourism maintain the pre-eminence in world tourism that it deserves,” concluded Vella. 

A follow-up conference next year is scheduled for 24th-25th February, 2005.