INTOUCH. In this issue: MHRA s e-magazine ISSUE 1/2015 BOV-DELOITTE Q HOTELS SURVEY. E-Marketing Course. LGB T Workshop

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1 INTOUCH MHRA s e-magazine ISSUE 1/2015 In this issue: BOV-DELOITTE Q HOTELS SURVEY E-Marketing Course LGB T Workshop Gozo Tourism Awards Sponsorship by Arts Council Malta HOTREC Welcomes German Court Decision

2 INTOUCH Page 2 QUARTER BOV-DELOITTE HOTEL SRUVEY During the third quarter of 2014, Malta s tourism sector continued to report improvements over the same period last year on most of the key performers indicators in line with the trends recroded in All sectors reported increases in their gross operating profits. The Gross Operating Profit Per Available Room (GOPAR) in the 5 Star sector increased by 14.8% primarily as a result of improved rates and occupancy notwithstanding an increase in cost base (+7.5%) At 13.8%%, the 4-Star sector also reported a significant increase in the GOPAR driven primarily by growth in ratess and occupancy as well as a dcrease in expenditure (-2.2%); The 3-Star sector reported the most significant increase in GOPAR at 43.7%. Notwithstanding a slight decrease in occupancy, average rates andn revenue per available room (REVPAR) were up significantly over the same period last year, propped by the performance of a couple of hotels in the sector. Tourist arrivals Guest nights Tourist expenditure +7.2% +3.1% +8.8% Mr. Andrew Agius Muscat, CEO MHRA opening the seminar

3 INTOUCH Page 3 Ms. Josabeth Cassar, BOV making her presentation on The Benefits of a Trust Ms. Diana Teppougoff - British High Commission making her presentation on Consular Assistance to Foreign Nationals. Mr David Bonett, Deloitte delivering the Q3 Survey Results Mr Andrew Agius Muscat, CEO MHRA explaining the Current Bookings Scenario

4 INTOUCH Page 4 E-MARKETING COURSE BY THE MUCL & THE MINISTRY FOR GOZO

5 INTOUCH Page 5 LGBT Workshop The Malta Tourism Authority will be holding a workshop entitled: 'Effectively Marketing to the highly lucrative Gay and Lesbian (LGBT) Community'. The presentations will be delivered by the Managing Directors of Communigayte Company Ltd, a leading German agency for gay marketing & advertising. The workshop will be held on Tuesday 20th January 2015 at the Dolmen Resort Hotel & Spa between 09.00hrs and 12.00hrs. Registration and a welcome coffee are scheduled at 09.00hrs. The first presentation will be delivered at 09.30hrs. Registration is on a first come first served basis and an e- mail should be sent to the undersigned Ms Shirley Psaila on shirley.psaila@visitmalta.com to register for the workshop. GOZO TOURISM AWARDS 2014 For the seventh consecutive year the Gozo Tourism Association, organised the Gozo Tourism Awards This year, Awards were bestowed to the Gozitan Tourism Worker of the Year as well as in the Tourism Gozitan Entrepreneurship Award section. vital touristic industry in Gozo. The main aim of these awards is to acknowledge, commend, encourage and thank all the workers and Entrepreneurs who distinguishes themselves in the performance of their duties in the The event was held in one of the leading hotels in Gozo, under the patronage of President Marie- Louise Coleiro Preca. In recognition of his achievements at the ITS in Qala, as a chef and lecturer, Jesmond Borg was named as Best Tourism Worker of the Year Award 2014, whilst the Tourism Entrepreneurship Award was awarded to Mr Alvin Scicluna, Managing Director CVC Media. Finally the Gozo Tourism Association Council awarded the Lifetime Tourism Achievement Award to the late Mr. Ino Attard and Mr. Lino Cefai for their investments and achievements in the tourism sector during a span of 40 years, which definitely contributed towards job creation and economic growth on Gozo. President Marie Louise Coleiro Preca conferred the Gozo Tourism Worker Award to Mr. Jesmond Borg, while the Minister for Gozo Dr Anton Refalo presented the Tourism Entrepreneurship Award to Mr. Alvin Scicluna. The Lifetime Tourism Achievement Award was presented by the Minister for Tourism Dr Edward Zammit Lewis to Mrs Mary Grace Attard, the wife of the late Mr. Ino Attard and to Mr. Lino Cefai. The Event was also attended by M.P. Mr. Frederick Azzopardi, Malta Tourism Authority Chief Executive Office, Mr. Paul Bugeja, MTA executives, Gozo Tourism Association council members and other members coming from the various sectors of the Gozitan Tourism industry.

6 INTOUCH Page 6 HIP BY THE ARTS COUNCIL MALTA Recently, Mr. Albert Marshall, Chairman of the Arts Council Malta, on behalf of Hon. Owen Bonnici, Minister for Justice, Culture and Local Council, presented MHRA CEO Mr. Andrew Agius Muscat with a cheque as part of a sponsorship agreement in recognition of MHRA s efforts to support and promote Maltese arts and culture during its events particularly during the Mediterranean Tourism Forum. Performing during this event where The National Philharmonic Orchestra, the Therese Lungaro Studio Dancers and local singers. Mr. Marshall thanked Mr. Agius Muscat for the MHRA s continued efforts in the development of niche markets linked to cultural tourism. HOTREC WELCOMES GERMAN COURT DECISION The Higher Regional Court Düsseldorf dismissed the appeal of the hotel booking portal HRS against the decision of the German Federal Cartel Office (Bundeskartellamt) concerning so-called MFN clauses ( most favored nation clauses ). With such MFN clauses HRS had obliged its hotel partners for many years for instance not to offer anywhere else cheaper room rates than on the HRS portal. This is an extremely important step in the recovery of the entrepreneurial freedom for the hospitality industry, welcomes Markus Luthe, Chair of HOTREC s Distribution Task Force, the outcome of the process. On December 20, 2013 the Bundeskartellamt prohibited HRS from using MFN clauses in its contracts with hotels. Such clauses are mandatorily imposed by distribution partners to maintain identical rates for the same room type and identical booking conditions across all online and even offline channels. The Bundeskartellamt had concluded that these MFN clauses violated German and European competition law. Since March 2014 HRS has not been allowed to apply such MFN or best rate clauses in contracts with hotels in Germany. HRS had filed an appeal against this prohibition of the Bundeskartellamt and complained at the Higher Regional Court Düsseldorf. The German Hotel Association (IHA) took officially part in the legal proceedings. Parallel to the HRS proceedings before the Higher Regional Court Düsseldorf the Bundeskartellamt investigates on complaint of the German Hotel Association (IHA) as well in terms of MFN clauses in the contracts of Booking.com and Expedia. With today's decision by the Higher Regional Court Düsseldorf we are fully confirmed in our legal opinion that MFN clauses imposed by HRS and other hotel booking portals represent a clear and blatant restraint of competition. Competing booking portals have also been hindered unlawfully, as well as the direct distribution of the hotel industry, commented Markus Luthe. With its decision the Bundeskartellamt broke new grounds. Accordingly today s judgment of the Higher Regional Court is of great interest to many other European antitrust authorities, which have also launched investigations against MFN clauses in the contracts of hotel booking portals. We are confident that today s decision will open the door widely to end the practice of imposing MFN clauses on hotels across Europe, and hoteliers will regain their entrepreneurial freedom. Today s decision makes also clear that this practice is simply anti-competitive. added Christian de Barrin, CEO of HOTREC.

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8 INTOUCH Page 8 MHRA TRIQ IL-GALLINA SAN GWANN /4 mhra@mhra.org.mt SILVER BRONZE We re on the Web! Visit us at: Find us on Facebook: pages/malta-hotels- and-restaurants- Association/